As an owner or manager of a rental property, your focus is on your return on investment (ROI). You want to keep costs as low as possible while doing everything you can to maximize your returns. That’s where renovations come in.
Renovations are key when it comes to maximizing the ROI of your rental property, so here are some tips for keeping costs low and value high when renovating and staging your property:
1. Start with a Clear Vision.
Before you begin any renovations to your rental property, start with a clear vision. You want to know exactly what you are striving for and set the budget accordingly, and in doing so, you need to remember a couple things:
Perfection isn’t the goal; this is only a temporary home for your tenants, after all.
Good presentation doesn’t have to be expensive.
You are creating an inviting rental that your tenants will personalize with their own items, so don’t worry too much about all the little details. Instead, focus on what needs doing and remember that proper lighting and furniture staging can go a long way to making a property feel new.
2. Improve the Kitchen and Bathrooms.
The most important factors for your prospective tenants are the kitchen and bathrooms. These epicenters of daily activity should feel new and inviting to attract the most and best tenants. Focus your renovation dollars here.
Nothing increases your property values like an updated bathroom and kitchen. Consider upgrading the appliances, the cabinets, and the flooring.
If you don’t have a very large budget, give these rooms a new coat of paint and replace the fixtures with new and modern models. Replacing cabinet knobs and sink faucets is a cheap way to give your property a renovated feel without the expense.
3. Repair where Replacing Doesn’t Make Sense.
At tenant turnover, you likely won’t need to replace all flooring and paint over every room in the property. Yet, some landlords think they have to do just that.
Thoroughly inspect the property and determine where it makes more sense to repair rather than replace.
For example, hire a professional carpet cleaner and see if you can’t make the carpet beautiful again without having to replace it. Touch up scuffs and chips on walls before deciding on a fresh coat. Thoroughly clean and polish before opting for new appliances altogether.
But keep in mind, if you can budget upgrades in your kitchen or bathrooms, you’ll want to spend the money on replacements for your best chance at a higher ROI.
4. Clean Everything and Often.
A good cleaning is vital and should be a regular part of your turnover process. You don’t want to skimp too much on good cleaning: hire carpet cleaners and a professional home cleaning service to ensure quality.
A great-looking home will justify a higher rental price when you show it off to prospective tenants. And the way the home looks at showing will help set expectations for your tenant on how the property should be maintained and left when they eventually move out.
Professional cleanings are an investment that will pay for themselves in the long run. Paired with fresh coats of paint every 5 years or so (touch-ups if a full coat doesn’t make sense), your interested tenants will be eager to pay a bit more for your quality property.
5. Stage for Success.
After a thorough cleaning and upgrading where you can, its time to give your prospective tenants the best vision of themselves in your property.
This means effective staging.
Make sure all the blinds are open and the lights are on—a well-lit property is inviting and appears larger than a dimly lit one. If you’re painting, keep it light, warm, and open.
Then, rent some furniture for staging. This is great because it allows your tenants to better imagine how they will fill and interact with the space. They will be able to envision themselves in the property and will be more eager to rent.
You can find furniture rentals that cater pricing to your needs, allowing you to pay for a timeframe that makes sense to you.
Good staging isn’t expensive and will truly allow you to go higher with your monthly rental fee.
6. Touch-up your Landscaping.
Do not forget that the exterior of your house is an essential component of renting your property. As the first thing your prospective tenants will see, the outside of your home sets first impressions and influences how they feel about the interior.
That’s why you need to make sure the front yard is well-maintained and looking neat.
Mow and trim the grass. Add or replace flowerbeds with fresh, thriving plants. Hedge all trees and bushes. And improve all possible views that might make your property more inviting and valuable.
Again, a good-looking property can justify higher prices, so you want to invest in creating a safe and clean exterior where prospective tenants can imagine themselves thriving.
Make a Plan, Be Thorough, and Sell Quality.
Once you’ve made your vision a reality through a thorough and inexpensive update of your property, you can sell that quality to renters. Quality renters will be attracted to quality properties, which you can list at higher prices. They’ll also want to stay, decreasing your turnover and vacancy times.
Through simple and inexpensive renovation tips like these, you will maximize your return on investment and manage a property you can be proud of.
For more information about maximizing your returns on real estate investments, contact 208.propeties today.