If you are thinking about how much to charge for rent, start thinking about home renovation. Some home renovation strategies have been proven to increase the return on investment for your property dramatically.
To make sure you ultimately benefit from any renovation, here are 9 home improvements to consider.
Tip: Before you start calling up contractors, however, make sure to evaluate the cost of home improvements properly. You need to use an investment property analysis tool to find out exactly what a renovation will do to your finances. You can find a great investment property calculator for that purpose on Mashvisor.
Related: The 6 Hidden Costs of Owning Rental Property
Property Renovation 101: The Infamous Kitchen Makeover
The kitchen makeover is the king of real estate renovation. Since the kitchen is the most used room in the house, focusing your home renovation on the kitchen will likely upgrade the return on investment for your real estate property dramatically.
Generally, people are looking for cleanliness and peace in a kitchen. You don’t need to fork out tens of thousands of dollars to complete this home improvement. Instead, think about the little things. For example, if your kitchen cupboards are a cool 80’s aqua color, you might want to simply repaint them instead of replacing them. Repaint cupboards with neutral warm tones that most people enjoy looking at. Also, think about adding nice countertops and faucets to the kitchen. Again, you don’t need to spend a lot to make the makeover useful. If you are thinking about real estate appreciation value, however, a complete remodeling may be necessary.
Property Renovation 101: Bathroom Upgrades
Again, cleanliness is a huge deciding factor when tenants are choosing a new home to rent. Stained floors and discolored bathroom fixtures are a huge turnoff. Add to that cheap countertops and chipped cupboards, and you will be ensuring a low return on investment for your property. Luckily, a simple bathroom home renovation is one of the best improvements for home valuation and can help you bring your rental income way up.
Take a look at the bathroom yourself and see if you would rent this home based on what you see. If the answer is no, then start changing it until you get a yes. Keep in mind that stainless steel towel rods and other little fixtures give great visual appeal to the bathroom. On the other hand, if you are hoping for substantial real estate appreciation, you should do a complete redo to the bathroom. This would include things such as shower tiles and new cupboards.
Property Renovation 101: Insulation Top Ups
Insulation home renovation top ups will actually make and save you money at the same time. If you have a multi-family rental property, then you should really think about an insulation top up. A big deciding factor for some tenants when looking at multi-family properties is the noise. People want peace and quiet in their homes. Topping up on insulation will take care of this issue for renters thereby giving you the potential for a high ROI.
On the other hand, insulation will also save on heating and cooling costs. This will cut down on your rental expenses if you take care of paying for these services with short term rentals, for example. It might also be a good selling point for long term rentals to let the tenant know they’ll be paying less for their bills thanks to the insulation.
Property Renovation 101: A New Paint Job
A very underestimated home renovation strategy is a fresh paint job. Repainting the rooms of your real estate investments will give them a completely new look. Now, remember that not all paint jobs are going to give you good results. Stick to the basics when repainting your property and use colors most people like. Colors like beige and an eggshell white are always recommended. This is a pretty cheap option for what will look like a total property upgrade.
Property Renovation 101: Get Rid of the Carpet
A huge inconvenience for landlords is having carpets in their rental properties. Carpets are difficult to maintain, cost quite a bit to clean, and stain easily. A carpet may also make real estate investments look older and cheaper to some extent. Instead, opt for hardwood flooring. Hardwood is a common favorite for tenants and is often actually looked for when finding a new property. On top of giving you a high ROI, it will also save you a lot on rental expenses.
Related: Owning a Rental Property: The Best Flooring Options
Property Renovation 101: Light Fixture Updates
Changing light fixtures is a super easy and non-invasive real estate renovation. Believe it or not, this simple change can increase the after repair value of investment properties dramatically. This isn’t really a home renovation strategy for a severely distressed property. This is a simple and cheap way to make a simple fixer-upper bring in higher ROI.
Property Renovation 101: Aim to Impress from the Outside
A great way to get potential tenants and buyers interested in your investment property is to make some outdoor home renovations. This will include an outside paint job, as well as some landscaping. These home improvements will give clients a great first impression which will set the tone for the rest of the property inspection.
Related: Forced Appreciation: 11 Genius Ideas to Improve the Curb Appeal of Your Property
Property Renovation 101: Deck and Stairs Remodelling
If you are looking at increasing your rental property value pretty significantly, think about renovating your deck and outside staircase. If you don’t have a deck, think about adding one. This is a huge selling point in many areas and can make a huge difference in ROI whether you are looking at rental income or resale value. property value will definitely increase if you add a deck especially if your real estate property is in an area with good weather.
Property Renovation 101: New Windows and Blinds
This home renovation is geared more towards increasing the after repair value for a resale. This property renovation is especially important if you bought a fixer upper or a distressed property. Beautiful windows are a huge selling point for home buyers. You will definitely see potential buyers looking closely at windows during the property inspection.
Related: 6 Rental Renovation Tips to Know Before Spending Any Money
Before beginning any home renovation project, be sure to consult an investment property calculator such as the one offered by Mashvisor. This investment property analysis tool will tell you just how smart it is to conduct a property renovation in the current market.
To learn more about how Mashvisor will help you make faster and smarter real estate investment decisions, click here.