As a rental property owner, your main goal is to attract high-quality tenants that will respect your property just as you would. One great way to do this is to make periodic upgrades and renovations to the rental home to keep it up to date and looking well-maintained. This will not only positively impact tenants by providing them with modern upgrades, but property owners can also benefit from maximum ROI.
What Is ROI?
Return on investment is essential in deciding whether a property is worth upgrading or renovating. This information measures the performance and profitability of a property against the total expenditure. Making renovations and home updates is a great way to boost ROI and can make a great impression for quality tenants who are willing to pay for the quality they are getting.
Upgrades to Attract Quality Tenants
Choosing the right renovations for your rental property can be a great way to catch a new tenant’s attention and an opportunity to maximize the rental’s value. High-quality tenants are more likely to spend more money on nicer appliances, new flooring, and updated technology.
Several things you can do as a rental homeowner to keep your property healthy and up-to-date include:
1. Keep up to date with technology
2. Install new flooring
3. Upgrade appliances
4. All-over painting
5. Upgrade lighting
6. Update bathrooms
7. Utilize energy efficiency
8. Upgrade outdoor areas
Up To Date Technology
Keeping up to date with technology is becoming more important now than ever before. The ease and convenience that technology provides are extremely desired and will attract quality tenants who are looking for updated systems. Examples include new electrical systems, security systems and online property rental resources. With these installations, you can provide your tenant with safety, security and renting convenience.
Everyone appreciates a brand new floor free of stains, damage or signs of aging. One thing to keep in mind when installing new flooring is durability. There are many different flooring options such as carpet, hardwood or tile. It’s best to go over all the flooring possibilities for each area of the rental property before making a final decision. When striving for durability, you are ensuring less maintenance and long-lasting flooring, saving money in upgrades that may need to take place with less-durable flooring.
One of the first things noticed by tenants when viewing a property is the kitchen appliances. Noticeably old or outdated appliances will not necessarily attract new quality tenants, but rather turn them away. People are more likely to rent out homes that have nicer stoves, refrigerators and sinks. Not only are kitchen appliances important, but a nice washer and drier that are energy efficient are important to include as well. These are a few top selling points for most quality tenants.
A fresh paint job can do wonders for an older or newer home. Of course, paint touch-ups are needed every once in a while, but all-over painting jobs should be done as well to fully freshen up the property. Neutral colors work best for rental properties if you are looking to create a space that is diverse and welcoming for all tenants. White or beige wall paint creates an open, calming space while allowing pops of color in home décor or furniture. <![if
Lighting should be another consideration while doing rental home upgrades. Outdated, old or yellow-toned lighting is not as desired as natural or modern lighting fixtures. Try to utilize as much natural lighting as possible before installing additional lighting fixtures to save energy costs and save tenants the hassle of frequently changing light bulbs.
Bathrooms are another home space that gets recognized by potential tenants right away. An upgraded shower, toilet and sink will be much more appealing to quality tenants than an outdated bathroom. Bathroom renovations are also a great opportunity for landlords to make cost-effective upgrades that will save money in the long run. Great bathroom upgrades include new lighting, a new toilet or shower and a vanity with lots of storage.
Investing in energy-efficient appliances is a great way to add indoor appeal and increase the value of your rental property. Quality tenants will appreciate cost-efficient appliances and amenities while allowing property owners to charge more for appliances such as washers and dryers.
Outdoor Area Upgrades
A little bit of maintenance and landscaping can go a long way for the outside of your property. The first thing a tenant will notice while touring a home is the outside, of course. If this area is not well-maintained it is usually a turn-away for people who are looking for a nice property to rent. Keeping the lawn maintained, plants or flowers pruned and deck areas cleared is extremely important for the outer looks and first impressions of the property.
As a homeowner, making upgrades and renovations to your rental property is essential in finding a great quality tenant. To attract someone respectful and willing to pay for upgraded appliances, it’s important to keep the property well-maintained and as up-to-date as possible.
Great home upgrades to boost ROI include modern technology, new flooring, upgraded appliances, fresh paint around the home, lighting upgrades, bathroom updates, energy-efficient appliances and well-maintained outdoor areas. To reach your investment property’s full earning potential, turn to a local property manager for guidance.