4 Best Renovations for Your Rental Property

As a landlord, by investing in the interests of your tenants, you increase your return on investment. Property renovations help increase a unit's desirability. In turn, you can expect a high occupancy rate.

There are a lot of ways to spruce up a rental unit, from subtle fixes like updating hardware to more significant projects that involve knocking down walls. That said, no two renovations are ever the same. Some will add more value than others.

In this article, we're going to take you through the 4 best renovations to consider for your rental property. But first…

Why Should I Renovate My Rental Property?

Is renovating my rental property worthwhile? This is a question that many landlords usually ask themselves, especially first-time landlords. According to Deborah Harari, a real estate expert, "Updated homes have low vacancy rates than dated ones. Basically, it goes back to the old adage that you need money to make more money."

The following are some reasons why you should consider updating your rental property:

  • Your unit will stand out from the rest - The right renovations will make your rental property more competitive in the rental market. In turn, not only will it result in a higher occupancy rate but also the potential to earn more ROI.
  • Renovations boost your property's energy efficiency - Adding features like a programmable thermostat or energy-efficient windows can help reduce the costs of utilities for your tenants. This can be a popular selling point.

  • Your property's value will skyrocket - The right upgrades will increase the resale value of your rental property.
  • More renter satisfaction - Investing in improvements like quality appliances and updated countertops can help improve renter satisfaction. Not only that, but quality upgrades also mean fewer maintenance calls for you.
  • Some renovations may be eligible for tax deductions - Are you making repairs to simply maintain your rental unit? If so, you may be able to deduct those costs from your taxable income.

With these points in mind, let's take a look at the 4 best renovations for your rental property.

Renovation #1: Update the kitchen.

The kitchen is one of those rooms that can attract long-term tenants or drive them away for good. When updating your kitchen, the goal should be to increase its functionality, which can be a huge win for tenants.

The following are some of the many renovations you can invest in for the kitchen:

  • Upgrade your appliances - Switch dated ones with newer, smarter models. Modern appliances are more efficient. Moreover, they are also more durable and take up less space.
  • Invest in quality countertops - There can be no compromise when it comes to countertops. One of the best options today is quartz. It's not only stain and scratch-resistant, but quartz is also environmentally friendly. Another option to consider is granite.

  • Reface your cabinets - Rather than tear out the entire assembly, consider refacing your cabinets. So long as fatal damage such as mold, pest infestation, water damage or rot isn't an issue, refacing can be a great cost-effective option.

Renovation #2: Renovate the bathroom.

An up-to-date bathroom is another priority on a prospective tenant's list. At the very least, consider updating the cabinet hardware, upgrading the faucet, adding a new shower head and replacing the toilet seat. If there is not much space to work with, try maximizing the space by providing additional storage. This will make the space functional to your tenants, which will be a great selling point.

The following are some of the things that can help you in this regard:

  • Install new shelves - This will provide your tenants with more space without taking up a lot of room.
  • Convert the shower into a walk-in one - Make taking a shower a luxurious experience for your tenants.
  • Use a barn door or a pocket door - A new door style can make all the difference.

To further elevate the bathroom's design, consider adding more counter space and a new vanity if room space is an issue. Get your creative juices flowing by upcycling an old dresser by adding a sink to transform it into a stylish, distinct statement piece. You can also shop for inexpensive options at Costco and IKEA.

Renovation #3: Update the curb appeal.

Life is full of second chances. However, when it comes to impressing prospective tenants, the maxim – you have only one chance to make a first impression – is usually true!

To prospective tenants, first impressions carry a lot of weight, so be sure to make a good one. The exterior of the building is the first thing a potential tenant will see. Therefore, make sure to landscape the front lawn.

Take note, however, not to overcomplicate things. Because if you do, a prospective tenant may see it as high-maintenance, and that might be a turn-off.

The following are some ideas to help you in this regard:

  • Install new bricks or pavers.
  • Spruce up your windows by painting the trim.
  • Add some new life by installing window box planters.
  • Add depth and contrast by installing shutters.
  • Give your garage door a makeover with new hardware.
  • Go vintage, not outdated, with your mailbox.
  • Make your home glow with some exterior lighting.
  • Illuminate your walkway.
  • Upgrade the outdoor lighting with sconces or lanterns.
  • Frame your entryway with some tasteful landscaping.

Renovation #4: Add some amenities.

Go for amenities that will help you boost your property's attractiveness. The following are some options to consider:

  • Fenced-in yard for pets - With the majority of renters being pet owners, this can be a worthwhile addition.
  • Outdoor living areas - Whether it's a balcony or a patio, provide a space for your tenants to enjoy nice weather.
  • Off-street parking - This can be a big seller in snowy climates. You can really hook your tenants by having a carport or driveway, particularly in busy areas.
  • Air conditioning - This is a big win. If you can help your tenants avoid the blazing summer months, they will highly consider renting your unit.

There you have it—the 4 best renovations for your rental property. If you implement these, you'll be sure to get better responses from interested tenants and may even be able to get them to stay long-term.

Does performing renovations still feel daunting? If so, we can help. Suncastle Property Management is a reputable property management company that can help run and maintain your rental property. We specialize in managing both residential and vacation rentals on Florida's Historic Coast.

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