Unsplash CC0 licenceUpgrading your rental property and maximizing your ROI are two separate things. Some upgrades are cost-effective, but many simply aren’t, and it’s up to you as the property owner to know which is which.
Remember, when you’re upgrading a rental property, you’re not designing a forever home, so it doesn’t really make sense to invest huge amounts of money in things that aren’t going to make a difference. What matters most is investing in the items that your renters care about most.
Here are the smartest, most cost-effective levers that you can pull if you’re looking to upgrade your rental property.
Refresh kitchens and bathrooms with no demolition
Engaging in demolition projects in your kitchens and bathrooms is not a good idea. Fully renovating these rooms is notoriously expensive, and you can wind up spending tens of thousands of dollars for no real benefit.
The trick is to upgrade these rooms without the usual demolition component. If you can do this effectively, you can attract premium rents while avoiding some of the upfront capital costs. Most kitchen cabinets, for example, are structurally sound but visually dated. You can just paint them a different color, add new doors and drawer facades, or even new handles and pulls.
In the bathroom, you can remove an old yellow bathtub and replace it with something that looks white and crisp. A standing bathtub can also look great. These small changes can have an enormous impact on how renters view your rooms and the finished space.
Integrate affordable smart home technology
Unsplash CC0 licenceAnother thing you can do is integrate affordable smart home technology. Many millennials and Gen Z renters look for connectivity and convenience wherever they go. Adding a few smart home features that will really make a difference to them can encourage them to stay with you for longer or pay you a little bit extra.
Keyless smart locks are the obvious priority, as well as smart thermostats. Some landlords are now incorporating smart home assistants into their rentals as well to make them even more attractive.
Invest in strategic curb appeal
You could also look into investing strategically in curb appeal. While it sounds strange, many renters still judge the value of a property based on how it looks, especially when shopping for one online. Therefore, it can make a big difference to simply make your rental look good from the street, even if it doesn’t offer any extra square footage compared to a similar rental across town. Improving curb appeal doesn’t require a massive landscaping budget. Often, it just requires a bit of spring cleaning:
- Mowing the lawn
- Trimming overgrown bushes
- Power washing the driveway
These can all have an enormous impact on rent perception. People want to see themselves as living in a clean and vibrant environment, so they are often willing to pay more for these very basic and rudimentary upgrades.
Invest in durable, low-maintenance flooring
Another pro tip from industry insiders is to invest in durable, low-maintenance flooring. Floors can easily hold odors and collect stains, and need to be replaced every few turnovers. They can also eat into your profit margins. That’s why it’s a good idea to invest in durable, low-maintenance options that are eligible for tax deductions.
For example, you might want to replace old carpets with hard surface flooring. Luxury vinyl plank is currently in vogue because it’s extremely durable and looks good at the same time. You’ll want to put this in the kitchen, the bathroom, and other high-traffic areas. LVP is also scratch-resistant and very cheap to install.
Swap out outdated fixtures and hardware
You could also look into swapping out some outdated fixtures and hardware in your rental property. Financially savvy upgrades often just involve replacing what’s old and damaged with something new and high-quality.
Brass cabinet pulls don’t look good on drawers, but you can quickly replace them with sleek handles. Most cabinets and sets of drawers will look like new. You could also add a high-arc kitchen faucet or a contemporary bathroom vanity light.
Use fresh paint
Finally, you could explore leveraging a fresh coat of paint. Painting offers among the best returns on investment of virtually any DIY or repair work that you can do on a property. Repainting neutralizes odors and covers up imperfections. It can breathe life into a new space and remove all scratches and scuffs that make an interior look dated or tired.
Prioritize neutrality for rental properties. Try to avoid anything bold or garish. Some tenants might not have the same taste as you.
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