What Upgrades Get Your Money Back In Rentals?

What Upgrades Get Your Money Back In Rentals?

Maintaining, repairing, and upgrading rentals are expensive. So, what upgrades get your money back in rentals? Read our tips to save money.

 

KEY TAKEAWAYS

• The right rental upgrades can make you money.
• We show you how to cut upgrading costs.
• Make upgrades that tenants want.
• Improve energy efficiency to save tenants money on energy costs.
• Attract higher quality tenants who stay longer with fewer vacancies and more profits.
• Raise future rents because of your upgrades.
• Increases your property’s value for greater gain when you sell.

View Our 8 Low-Cost Upgrades to Make Your Money Back in Rentals

 

Upgrades Can Make You More Money

While maintenance and emergency repairs of rentals are necessary what updates help you to attract more long-term tenants? Fewer vacancies and longer tenants will more than pay for your upgrades.

How will upgrades make you more money? Here‘s a list of the ways they increase your profits:

• Makes your rentals stand out from the competition – Renovating to make your rentals more attractive for potential tenants beats your competitors;
• Improves energy efficiency – Energy-efficient upgrades like programmable thermostats and energy-efficient windows cut energy costs that tenants will like;
• Improves tenant satisfaction – High-quality, new appliances with upgraded countertops give tenants a greater user experience. Plus, new products require less maintenance and repairs increase tenant satisfaction;
• Let’s you raise future rents – A few extra expenses for a finished look let you raise future monthly rents; and
• Increase property value – Improving rental property features results in higher property value when you sell.

 

8 Inexpensive Upgrades to Really Get Your Money Back In Rentals

You don’t have to spend lots of money to make upgrades that get your money back. Avoid costly full home renovations. Instead, focus on features that your tenants will appreciate.

Getting quality tenants to rent means offering better features for a reasonable price than your competition.

Here are 8 upgrades you should do:

 

1.  New Flooring

A recent survey on flooring trends showed that 25% of renters wanted to replace their floors. Why not do it for them? The same survey revealed that tenants preferred hardwood flooring because it looks modern and is easy to clean.

Put in new flooring to add a fresh clean look. Again, you don’t need to refloor the entire house or apartment. With many inexpensive flooring options to choose from (like laminate), focus on areas with dirty, worn carpets.

The same survey showed that tenants dislike carpets because they require more maintenance and trap bad smells. Replace the old carpets with inexpensive flooring material that looks nice, is easy to clean, and is durable. New flooring always increases the property’s value. For example, a popular flooring choice is a luxury vinyl plank durable, water-resistant, and costs less than hardwood floors.

 

2. Fresh Paint

You don’t need to paint the entire house or apartment. Choose the most important areas and rooms to add fresh paint like the master bedroom and living room.

Avoid using bright colors which won’t fit most tenants’ styles. Use calming neutral colors like traditional whites and grays to provide uniformity making it easier for tenants to decorate.

Besides painting walls, give a fresh coat of paint to door frames and baseboards to make them look fresh and clean.

 

3. Update Bathrooms

Tenants appreciate up-to-date bathrooms.

Gutting and renovating bathrooms is costly and time-consuming. Yet, making small changes makes bathrooms look new and more spacious.

Replace all toilet seats, worn hardware, sinks, and fixtures. Substitute a bathtub with a walk-in shower. These will make the bathrooms look newer. Replace all shower heads and curtains. Update the faucets and cabinets. Add a new vanity with more counter space where enough room allows it.

Small bathrooms require maximizing the space and adding hidden storage areas and shelves. Functional small bathrooms appeal to tenants.

If your budget allows, add a full bathroom for every bedroom. Tenants with roommates will appreciate them. So will teenagers who seek privacy.

Local home improvement stores offer inexpensive nice looking bathroom fixtures and hardware. This will make your bathroom upgrades less costly.

 

4. Kitchen Improvements

Replace all old or worn cabinets and drawers. Otherwise, painting and replacing  the hardware on functional kitchen cabinets will make your kitchen look newer.

Visit a paint store to ensure you buy the right paint for the cabinet material. Snap smartphone photos of the cabinets to show the paint store staff. Again, neutral colors work best.

New energy-efficient durable appliances impress tenants. You don’t have to buy top-of-the-line. Instead, buy nice-looking functional appliances. Make sure all appliances match each other as mismatches create a bad impression.

Countertops may need replacing. You don’t have to buy expensive granite countertops. Look for a durable material that withstands heat, stains, and scratches. Better Homes & Gardens suggest “5 Best Budget-Friendly Countertop Materials” including  laminate which looks nice and is easy to install, at a low cost.

 

5. Add a Backsplash

Adding a backsplash makes the kitchen look modern and luxurious. Instead of expensive ornate tiles, use subway tile backsplashes to add further protection to the walls at a lower cost.

Backsplashes are used for stoves and kitchen sinks to make cleaning easier for your tenants. Glass tile backsplashes look nice and are easier to clean.

 

6. Update Light Fixtures

The correct lighting changes the feel of a room. You can make it feel warm and inviting rather than cold and industrial. Modern inexpensive light fixtures are found on Amazon and in home improvement stores.

Ceiling fans with lights are handy in the living room and bedrooms. Three-speed fans keep rooms cool without using an air conditioner which saves tenants money. Tenants like ceiling fans for their adjustable lighting and cooling effect making rooms more comfortable.

Hire a local electrician to install the ceiling fans if you have never done it before. Improper wiring and lack of safety features can cause fires.

Look for energy-efficient light fixtures and bulbs to cut energy costs that tenants will like.

 

7. Exterior Upgrades

Renting homes requires creating a favorable first impression for prospective tenants. This is known as curb appeal as an attraction from the inside of a car when driving by.

Impress onlookers with fresh outside painting, an attractive front entrance, and a beautiful landscape. Freshly mowed lawn, trimmed plants and trees, clean gutters, and an inviting driveway creates curb appeal.

 

8. Other Popular Amenities

Consider the following additional amenities to attract more renters, fill vacancies faster, and possibly raise the rent. (Note: Most are for houses):

• Storage space – Tenants look for homes where they can store their belongings;
• Washer and dryer in-unit – A survey by the National Multifamily Housing Council, found that 77% of renters wanted to lease a unit with a washer and dryer;
• Dishwasher – Adding a dishwasher makes homemakers happy. Make sure it matches the other appliances;
• Fenced-in yard for pets – Pet owners appreciate a fenced-in yard to protect their furry friends;
• Outdoor living areas – A balcony or a patio so tenants and their friends can sit and enjoy the outdoor weather on a nice day are appreciated; Also, a fire pit doesn’t cost much, but makes a big impression; and
• Off-street parking – A carport, garage, or driveway in busy areas is important to tenants,

 

Learn How to Make More Money with Rentals

 

We publish many useful blog posts here for landlords and real estate housing investors. Our most popular ones include:

• “How to Make Millions with Rental Properties”;
• “How Novices Buy Small Multifamily Properties”; and
• “Why You Should Start Investing With Single-Family Rentals”.

 

What Upgrades Get Your Money Back In Rentals? – Conclusion

 

We hope you liked our answer to what upgrades get your money back In rentals.

Upgrades don’t have to cost lots of money. Upgrading gives you these benefits:

• They can attract more tenants to avoid long vacancies;
• You can enjoy quality long-term tenants;
• Your upgrades can raise future rents; and
• They will increase the property value when you sell for greater gain.

 

Thinking of Buying Rental Properties in San Diego County?

WeLease Property Management Company can help you find great rentals and manage them for you. No matter if you buy single-family homes to rent or invest in large apartment complexes, and anything in-between, we can manage all of them for you.

Contact us now before you look to buy rental properties in the greater San Diego area. Or, if you already own local rentals and need help managing them.

 

Steven Rich, MBA – Guest Blogger

 

 

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