Part of being successful in property management is considering renovations when needed. While you may hesitate to renovate considering the money you need to shell out, the returns certainly pay off over the long term. You’ll be able to attract new renters and keep your current renters interested in renewing their leases.
Renovations can improve the living conditions of your unit in a variety of ways. Both by improving the living conditions in your property and the potential revenue you can generate.
For these reasons, we at One Focus Property Management have put together this article to help you understand the importance of renovating your property and how to do it right.
The Importance of Performing Property Renovations
For property owners, planning for renovations is an additional challenge on top of their normal property management tasks. But adding renovations allows for more income. For one, you can adjust your rent prices to compensate.
Here are some other great reasons to consider renovating your rental:
- Setting your unit apart from competitors and easier marketing
- Raising the value of your rental property
- Delivering tenant satisfaction
- Benefiting from tax deductibles from the renovation costs incurred
- Improve security by adding things like keyless entry
Value-Adding Rental Renovations
Before proceeding with your renovation projects, it’s important to learn what your tenant needs. You can then add upgrades that improve a tenant’s living experience. This inspires them to stick around for a long time.
Here are a few improvements we think you should consider:
Imagine walking into a kitchen where appliances don’t match. This can affect the appearance of the room and destroy a cohesive look. You can start planning a uniform theme and buy one appliance at a time. Stainless steel finishes are great for their elegant style.
This doesn’t mean purchasing top-end products since there are plenty of quality pieces that have affordable price tags. You can also try the following kitchen upgrades:
- Coating the cabinets with new paint and sanding them to give a fresh look
- Replacing the cabinet’s hardware
- Investing in a high-quality countertop, such as a granite countertop for durability
- Replacing the faucets to refresh the kitchen appearance
- Putting up tile backsplashes for easy cleaning
Tenants can really appreciate this, especially since kitchens are regularly used in a household.
Upgrade the Bathroom
Another area of a rental property where tenants often check out the bathroom appearance during property showings is the bathroom. This is also another area of the home that residents frequent throughout the day. Here are ideas to upgrade your bathroom:
- Replacing the toilet or the toilet seat, at the minimum
- Installing pocket doors/ sliding doors to make the bathroom more spacious
- Adding shelves for more storage of bathroom items
It’s good to follow a 1:1 ratio, having a bathroom for every bedroom on the property. If they have visiting guests, they don’t have to share bathrooms for greater privacy. Also, you could rent out the home per room, so this is a more convenient setup.
Improve the Property’s Curb Appeal
Your rental home should be attractive at first glance and is a great way to get your property ready to rent. This means paying attention to the exterior of your property. Does the landscaping look amazing? Does the outside paint of your property look fresh and clean? If not, take action.
Some tips to elevate your curb appeal:
- Trimming the shrubs
- Plant fresh grass or low-maintenance plants
- Place planters in front of the unit
It may sound simple but these changes do a lot to create a beautiful environment that steals the attention of prospects. If your exteriors are filled with clutter, weeds, and dying plants, renters will overlook the unit even if you have upgraded several parts of the interior.
Add New Amenities
Renters prioritize certain amenities over others. But this depends on your chosen tenant demographic: families will often look for more storage, renters who commute to work using their own vehicles will want a proper parking area, while students will need a room with a sizable desk as a study area and a shelf for schoolbooks.
Consider incorporating these amenities to invest in your property:
- Storage spaces, such as pantry area, shelves, cabinets, and closets
- Centralized air conditioning unit or heater
- Dishwasher, washer & dryer
- Parking area
- Outdoor spaces
Incorporate New Flooring
It’s well-known that hardwood is a great flooring material for its ease of maintenance and elegant appearance. Carpets may initially look attractive but the maintenance required can be off-putting, especially when you have renters who have full-time careers.
With carpets, you’d need regular steam cleaning to ensure they’re thoroughly clean, including warding off the smells that they can trap.
Landlords do well when they conduct renovations on their property. This leads to a positive impact by providing for the actual needs of the renters. It also motivates your renters to stick around longer. Even if the initial investment is required, you also benefit by keeping your rental returns steady.
If you have any questions regarding property renovation or anything else to do with property management, please contact us at One Focus Property Management.