Renovations can be an excellent investment for rental property owners. Not only can they increase your property’s appeal to potential tenants, but they can also allow you to charge higher rental prices. A recent Remodeling Magazine’s survey highlights that rental property owners can experience lucrative returns by taking on projects such as replacing old garage doors, installing stone veneers, and updating kitchen appliances. Adding a new garage door yields almost 94%, while even minor renovations in kitchens provide a 71% return on investment.
Renovations are also an excellent way to secure your property investment for the future. Not only will they stand up against damage from everyday wear and tear, but certain renovation projects, like installing energy-efficient appliances, may even provide tax incentives in some areas. This makes renovating your home a financially savvy decision. Explore some of the best renovation options for your rental properties and discover how they can help you reach your real estate goals.
1. Upgrade Kitchen Appliances
Upgrading kitchen appliance packages can be a great renovation for your rental property. It can improve the kitchen’s functionality and add value and aesthetic appeal to the property. Some popular options for kitchen appliance upgrades include:
- Refrigerators: A new refrigerator can offer increased energy efficiency, larger storage capacity, and more advanced features, such as smart technology and door-in-door access.
- Ovens and Stoves: Modern ovens and stoves can provide better temperature control, faster heating, and more advanced features such as convection cooking and self-cleaning options.
- Dishwashers: A new dishwasher typically features enhanced cleaning performance, better energy efficiency, and more advanced washing programs, such as delay start, sanitize cycle, and adjustable racks.
- Microwaves: A new microwave can provide more advanced features such as sensor cooking and inverter technology.
When upgrading kitchen appliances, consider the overall style and aesthetic of the kitchen. For example, a stainless steel set such as the ZLINE Autograph collection looks fresh in a modern kitchen. Selecting appliances that match or complement the existing décor can create a cohesive and attractive look.
2. Reface Cabinets
Replacing cabinets can be expensive and time-consuming; however, refacing them is an ideal alternative. This process involves replacing the doors and drawer fronts while keeping the existing cabinet boxes in place. Refacing results in updated cabinets that look brand new without purchasing entirely new pieces or tearing out the original cabinetry. Refacing can save money while allowing for customization with different colors or styles that fit the desired aesthetic. You can also add functional storage features to your cabinets during the refacing process, like roll-away pot racks, pull-outs, and hinged blind corner shelves. Refacing cabinets is relatively simple, quick, and affordable compared to the full installation of all new cabinets.
3. Invest in New Countertops
Installing new countertops is an easy and cost-effective way to quickly update the appearance of your rental property. Granite, quartz, and marble are all popular choices because of their durability, easy maintenance, and timeless beauty. Natural stone countertops can also increase the resale value of your rental property, should you wish to sell in the future. However, there are a variety of other options that may be more budget-friendly, such as butcher block or solid surface resin counters. Whichever material you choose, ensure it is aesthetically pleasing and practical for tenants.
4. Convert Bathtub to Walk-in Shower
Converting an outdated bathtub into a modern walk-in shower can create a much more attractive space for renters in your property. Walk-in showers make your bathroom appear larger and brighter and are easier for people with limited mobility to use. When planning the conversion, assess the current flooring, substrate, pipes, and shower valve. Moldy or rotted substrates and framing must be replaced before the tiles and shower pan are added. When selecting the materials for the shower walls, consider using tile materials like ceramic or porcelain that come in various styles and colors to add visual appeal; large format tiles can be an excellent option to minimize the amount of grout, allowing for easy maintenance and replacement, if necessary. Ensure you install grab bars, a shower bench, and other safety features for added stability when stepping in and out of the shower area.
5. Add Storage
Adding built-in storage can increase the overall functionality and livability of the space, making it more appealing to potential renters. Providing ample storage can help renters keep their belongings organized and reduce clutter, creating a more visually appealing and comfortable environment. Consider adding shelves or cabinets to closets, nooks, or under-stair areas around your home so they can easily store items like linens, clothing items, and cookware. If you have space, consider adding a walk-in pantry to the kitchen or a walk-in closet to the main bedrooms. Walk-in storage is one of the top five amenities tenants look for in a rental home.
6. Replace Outdated Flooring
Outdated flooring, like worn carpets or vinyl, can make a rental property look unappealing. Damaged or stained flooring also reduces its durability and makes it more difficult to clean. It may also contain mold and fungus, which release harmful chemicals into the air, negatively impacting indoor air quality and posing a threat to the health and safety of renters.
When choosing new flooring for your rental property, opt for low-maintenance, cost-effective, that can withstand heavy foot traffic and potential spills, consider laminate, bamboo, or tile. Laminate is a floating floor system that can be installed quickly and easily over existing flooring without adhesives or grouting. Bamboo is a strong and dense material, making it a durable choice for flooring. It is also relatively inexpensive compared to other flooring options, such as hardwood. Tile is easy to clean and maintain, making it a low-maintenance option for a rental property. It is also resistant to moisture and spills, making it a good choice for areas with high humidity or frequent spills.
7. Switch Out Light Fixtures
Switching out light fixtures is an easy and affordable way to update the look of any rental property. Energy-efficient lights such as LED bulbs use less energy than traditional bulbs meaning you will save on electricity bills each month. Modern fixtures come in various shapes and sizes, allowing you to personalize your space’s interior design. For example, consider installing recessed lighting in hallways or switching out ceiling fans with contemporary pendant lights for a more modern look.
8. Paint the Interior
A fresh coat of paint can make a room look brighter and more welcoming and eliminates dirt, scratches, and imperfections from walls and ceilings. Painting is relatively inexpensive yet effective for sprucing up your space – especially if paired with updated flooring or new light fixtures. To ensure your rental property appeals to a broad range of tenants, choose neutral paint colors for the walls, like beige, light gray, or white. This allows your tenants to style the home with furniture and accessories to match their aesthetic without clashing with the wall colors. Try light blue or green if you want to add a splash of color and personality. These soothing colors can make the home feel brighter and more spacious. But if you want to try something bold on a feature wall, consider something like Benjamin Moore’s color of the year, Raspberry Blush.
Improve Your Rental Property’s Value
Making the right investments in your rental property can go a long way toward increasing its value and attracting quality tenants. From installing safety features to switching out light fixtures, there are plenty of ways to improve the interior of your home to make it more appealing on the rental market.
Leave a Reply