Landlords try to minimize expenditures as much as possible, so why should you consider performing renovations? As the adage goes, "if it isn't broken, why fix it?" However, renovations can be categorized as additional investments.
Experience has shown that properties with more updated renovations attract more interest and inquiries. Knowing this, part of improving the value of your home is to spend on upgrades.
Benefits of Renovations
Creates market differentiation
In a sea of similar property offerings in the market, your rental home is a potential standout. While you do spend on renovation projects, you're also able to raise the price and generate a wide pool of prospective renters.
Promotes energy efficiency
Modern appliances now include energy-efficient features that drastically reduce utility bills. Tenants appreciate gadgets that will help lower their electricity costs. This is a key decision-making point to save on bill payments.
Increases renter satisfaction
Renters are naturally attracted to new features and contemporary rental units. They appreciate high-quality furnishings and energy-efficient appliances. These aspects transform a resident's living experience and make their stay more comfortable and less costly.
What's more, they'll also avoid asking for frequent maintenance requests since the property is in top condition. This makes living in the rental unit less of a hassle for a tenant. If they're wholly satisfied, they're also bound to extend/renew the lease once it ends.
When upgrading your rental property, it's important to know which particular changes matter to those who will benefit from them. This translates to effective spending of your financial resources. Here are helpful improvements that add more value to your rental property business:
The kitchen is an area where food preparation is done, therefore tenants prioritize this room above others. They check if the appliances are new and energy-efficient. After all, it makes cooking easier and quicker.
A cohesive look also makes the kitchen attractive and appealing to the eye. This should not be forgotten, even if the kitchen is largely appreciated for its functionality.
Here are kitchen furnishings to give attention to:
Countertops – Installing a quality countertop like granite can be cost-effective since a quality countertop can handle long-term damages better. A great countertop will also enhance the total beauty of a kitchen.
Cabinets – There's no need to overhaul the cabinets if they're quality made and functional. You can just repaint and install new hardware to freshen their look.
Backsplash – Tile backsplash keeps the kitchen neater and it's a relatively inexpensive kitchen upgrade.
Another priority for tenants is the bathroom, which is usually the first and last area of the house a resident will use each day. Be conscious of the bathroom space and minimize clutter, especially if the bathroom is small. Refrain from adding too much that would crowd the area.
There are plenty of ways to update the look of your bathroom and make it stylish by visiting lifestyle homeware shops. If you can afford to have several bathrooms, try to implement a 1:1 bedroom to bathroom ratio. It provides convenience to the renters.
Here are bathroom amenities to give attention to:
Toilets – Replace the toilet if it's old to upgrade the bathroom's look.
Walk-in shower – If there's no bathtub space, a walk-in shower is much more preferable. Change faucets and showerheads to make it more modern.
Storage spaces – Build shelves so there's more room for bath essentials, like towels and bath products.
Enhance curb appeal
The exterior of the rental property is the first thing a person sees so it's important to make it attractive. Good landscaping outside will beautify the premises. New paint will also give the property a refreshing look.
Here are ideas to try to improve the curb appeal:
Space for garden – Gardening can be a fun hobby and it also enhances the property's curb appeal. Having a neat garden can add balance and create harmony with nature.
Plant new grass – The fresh grass will make the lawn area even more attractive to viewers.
Trim trees and shrubs – This can also be a safeguard against dangerous electrical lines that will touch on the plants. Make sure the premises look neat through well-maintained shrubbery.
Planters and bricks – This brings an orderly appearance to the property and presents a cohesive look.
Paint exteriors – A new paint job draws the eye and can make a dated property appear new. Even if your renovation budget is minimal, repainting is one of the most affordable upgrades a landlord can do.
Include additional amenities
Tenants will naturally compare property amenities and it can be the deciding factor. If an amenity provides ease of use and a more efficient timesaving lifestyle, it's prioritized as a need.
Here are amenities to add in your rental unit:
Dishwasher – This saves time for renters to manage their household chores so having one gains points.
Storage space – Multiple spaces to store your belongings can be rare, so renters value having shelves, cabinets and closets. Well-designed areas that can convert and hold additional storage space are much appreciated.
Air conditioning – Living in a city with intense summers makes air conditioning a necessity for the resident.
Parking space – When a renter has a car, he would naturally appreciate having sufficient parking space to provide more security.
Washer and dryer – Another convenience that renters look for, so performing household chores will be more efficient.
Outdoor area – A space to gather for a barbecue or to relax and enjoy the weather. An outdoor area is appealing, especially when remaining indoors can be too stifling.
While renovations can be costly, you are simply improving and maintaining the value of your property. This helps in keeping your tenants around for a long time. When they see your excellent property maintenance and renovations, it will be hard for them to move to another property and this ensures a steady income for you.
Contact us if you have any questions regarding the content of this article or any other aspects of property management.