Sometimes we view something as an expense, but it could provide more value and should be categorized as an investment instead. A concrete example is rental renovations.
You may consider the costs of improving your unit as a negative cash flow but in reality, you may be making headway for a future positive cash flow.
A major reason landlords perform rental property renovations is to limit vacancies. Adding more value to your rental engages more potential tenants and inspires your current renters to renew their leases.
You should aim to offer your renters excellent rental features and amenities that align with their needs. Analyze suitable features to invest in to accommodate the renters’ desires and needs.
This strategy also helps you prevent overinvesting. Learn what is essential to cater to the needs of the market you are serving.
Which Areas Should You Include in Your Renovation Projects?
1. Include Top Amenities Renters Seek
Learn what type of functional features and amenities renters generally look for so you can incorporate these in your rental units.
Budget for renovations since having useful items elevates your property over others in the eyes of your target residents. It is much better to invest in functional upgrades than one filled with aesthetic things that don’t match the needs of the occupants.
Features that tenants appreciate include:
● Storage spaces: Shelves, cabinets, pantries, and closet space.
● Convenient appliances: dishwasher and in-unit washer and dryer units.
● HVAC systems: air conditioners and heaters.
● Parking spaces: designated parking area, garage, or driveway.
● Outdoor spaces: balcony, veranda, rooftop space, patio, or garden area.
● Pet-dedicated spaces: outdoor yard with a fence and pet grooming stations.
2. Create an Open Floor Plan
Many renters tend to prefer staying in open spaces than cramped rooms. You can combine rooms to achieve more space.
Tear down a few walls to open up the spaces. A larger room provides a more comfortable living space for the residents.
Make sure to check the blueprint to ensure that you are not damaging the main foundations of the property. It is best to consult professional builders to inspect the unit rather than opting for a DIY project to ensure the renovation is properly carried out.
3. Refresh the Space With a New Coat of Paint
Newly painted units appear more attractive. If you have an older property, consider coating the interiors and exteriors with another layer of paint to prevent the appearance of dullness. It will be more attractive to the renters and can shorten the vacancy of your unit.
Choosing neutral colors is best as different renters will want different color schemes and it is easier to match a neutral palette with the different furnishings a renter will be bringing in. You should also consider allowing tenants to paint the property on their own.
4. Choose a Good Flooring Material
It is best to ensure that your rental’s flooring can withstand heavy wear and tear, especially if you offer a short-term rental space.
If you can afford it, budget for hardwood flooring. This material holds more appeal for its high-quality look and durability. In addition, it is easy to maintain and clean compared to other flooring types.
Many landlords may choose to cover floors with carpets to make the rental cozy.
However, carpets can be a challenge to maintain since they tend to absorb odors a lot and stains can be difficult to remove. You also need to do a steam cleaning for maintenance or hire a cleaning specialist to maintain its look and pristine state.
Although hardwood floors can be pricey in contrast, you won’t need to worry about maintenance or long-term durability. You can also consider other high-quality options as your rental property flooring, which are less costly, such as marble and porcelain tiles
5. Improve Your Curb Appeal
Some landlords may focus too much on their rental property’s interiors but you should not neglect your property’s exteriors as well.
If you are trying to attract passersby and potential renters while conducting property tours, the prospective tenants are likely to evaluate your unit’s outward appearance as well.
Tips on enhancing your curb appeal:
● Mow the lawn.
● Remove overextended branches.
● Place planters in the front yard.
● Coat the main entry doors with new paint.
● Present a neat yard.
● Hire a landscaper to improve your greenery.
Why Landlords Should Renovate their Rentals
Property upgrades ensure your rental space remains competitive even if there are newer rentals in your neighborhood. Renters will be happier when you make their living spaces more comfortable.
Differentiate From Competitors
When there are similar property types available in your area, you can differentiate your unit by offering better amenities and furnishings.
Some improvements may be small but will respond to the needs of the renters better, so it can encourage renters to sign a lease agreement with you.
Deliver More Energy Efficiency
Investing in newer appliances can allow renters to save more since modern appliance models tend to be more energy-efficient so renters pay less for utilities.
Increase Renter Satisfaction
The happier tenants are, the longer they will stay in your rental space, minimizing the risk of vacancy.
Bottom Line
Investing in rental property renovations is not just about enhancing aesthetics—it's a strategic move to improve tenant satisfaction, reduce vacancies, and stay competitive in the market.
By carefully selecting upgrades that align with renter needs, such as adding functional amenities, creating open spaces, refreshing interiors with new paint, choosing durable flooring, and boosting curb appeal, landlords can significantly increase the value of their properties.
These thoughtful improvements not only attract new tenants but also encourage existing ones to renew their leases, ultimately leading to long-term financial gains.
Managing these upgrades can seem overwhelming or time-consuming, consider partnering with a trusted property manager who can provide the necessary support. Reach out to Lone Eagle Management today, and let us handle the stress of property renovations for you!