Rental properties are an excellent investment to add to your portfolio, but to help increase your return on investment, you may need to do a little updating. Here are a few ways to help maximize your ROI on your rental property/properties.
ROI Increasing Updates and Renovations
The kitchen is the heart of the home, and it is where tenants will spend most of their time. A kitchen brings family and friends together. To help increase your ROI, a kitchen should look nice and have functionality.
Updated, energy-efficient appliances will catch the eye of a potential tenant(s). Older appliances can lead to issues in the future, and they draw more energy causing utilities to be higher for the potential tenant(s). You can also update cabinetry and countertops to get the maximum ROI for your property. A fresh coat of light-colored paint can give a kitchen a whole new feel. Granite countertop variants are highly sought after, but butcher block is a great, less expensive, and desirable alternative.
You can transform a bathroom into a relaxation sanctuary with a few cosmetic updates. Here are a few ideas that can make a BIG difference in a bathroom:
- Replace the toilet or toilet seat, if need be.
- Upgrade the shower head.
- Update the vanity to something light and clean that also provides storage.
- Have the bathroom professionally cleaned, pay special attention to the nooks and crannies, like grout and have limescale dealt with accordingly.
- Upgrade to matching fixtures and faucets.
- Give the bathroom a fresh coat of paint.
- Allow optimal lighting – this is as simple as switching out lightbulbs.
You will be able to do most of these upgrades yourself or with a bit of help; of course, it all depends on the condition of the bathroom(s) you are considering updating.
We understand that hardwood flooring can be expensive upfront, but they are durable and highly desirable. Replacing stained carpets after each tenant can get old, and the costs will add up over the years. Consistent hardwood floors throughout a home are easier to clean and keep down allergens, and they will stand the test of time. Durable laminates or vinyl are also a great option to achieve the hardwood look.
Brighten up your spaces! Lighting can make a world of difference, and good lighting is known to boost moods and productivity. In addition, proper lighting can make a room feel larger and more inviting.
Give your property’s interior a boost. Fresh paint in a neutral color creates a clean look, making it easier for potential tenants to match their belongings with the space. For longevity purposes, we suggest a paint that can handle scuffs and easily be cleaned – especially in high-traffic areas like the kitchen, bathrooms, and hallways.
Aesthetically appealing curb appeal is sure to draw attention to your property. Remove dead or dying plants and replace them with a low-maintenance plant that will last year-round. Remember, the outside of your property will be what initially draws someone through the door. Curb appeal and landscaping do not stop at just grass and plants; here are a few other things to consider:
- Mend/fix any significant cracks in concrete sidewalks and driveways
- Trim overgrown trees, bushes, and grass
- Paint the front door with an inviting color
- Replace any holes or broken fence issues
- Make sure any railings, deck pieces, stairs, etc. are secure and replace any deteriorating pieces
The more energy-efficient your rental property is, the more your tenants can save on the utilities. Monthly savings can be a HUGE bonus to potential tenants. In addition, these changes can be done quickly and at a low cost, helping you and your tenants.
Check out these suggestions below:
- Seal gaps around windows and doorways
- Add insulation to the attic
- Swap out old incandescent bulbs for more efficient, long-lasting LEDs
- Install low-flow fixtures such as toilets or showerheads
- Replace old or inefficient windows
- Upgrade the appliances