Landlords try to limit property vacancies to ensure they get consistent rental income each month. They often keep their rental units in outstanding condition to retain long-term tenants. One of the most effective strategies to attract more renters and make the property appealing is planning rental renovations.
Adding new amenities or replacing old property features leads to more comfort, encouraging the residents to renew their lease. However, property owners don’t want to get carried away by overinvesting in property improvements.
Prioritize the vital needs of a renter to guide you on what rental property renovations to perform. Make sure that the improvements are functional rather than making changes solely for aesthetic reasons.
5 Areas to Focus on for Rental Property Renovations
1. Budget for Essential Amenities
Of course, having a visually appealing rental property can do a lot to impress renters. But you should prioritize function in addition to aesthetic. Make sure to learn what tenants are looking for and work to incorporate that in your rental property.
The top features renters typically seek are:
- More storage - try expanding your pantry space or building more shelves and closets
- Convenient appliances - invest in dishwashers and an in-unit washer and dryer
- Home systems - install air conditioning units or a great alarm system
- Parking spot - add a garage, driveway, or covered parking area if you can
- Extra outdoor spaces - construct balconies, patios, rooftop spaces, or garden areas
2. Consider Creating an Open Floor Plan
Even if a rental property is not that large, you can still make it spacious by expanding the area with an open concept plan. You have the option of combining rooms to optimize the space or breaking down some walls to bring in more light and create a brighter open area.
Another way to maximize your space is by putting in larger windows around your rental property to allow light to flood in. An open floor plan helps to brighten up the space even more. However, consult a professional contractor to properly plan your rental property renovation. You don’t want to hit foundational pillars that can damage your property’s structure.
3. Plan to Repaint and Make Small Improvements
Over time, wear and tear can affect your rental property and manifest in places like scuffed walls and fading paint. Luckily, a fresh coat of paint is one of the easiest improvements to make to your property.
Opt to use neutral shades to easily match whatever furniture your next tenant brings in. You may allow some walls for renters to designate as accent walls if they want a certain color in the property. Make sure to add this to the lease agreement, if you’re open to the idea.
Other less costly changes you can incorporate are adding new lights. You can also change the kitchen and bathroom fixtures. Faucets come in a variety of designs and can be a big improvement that won’t break the bank.
4. Upgrade the Floors in Your Property
Floors can elevate the look of a rental property. If you have missing or broken tiles, the property can appear unkempt. Now, hardwood floors are great if your property already has them but there are also durable, elegant options for veneer flooring (LVP).
Compared to carpets, hardwood flooring may be more costly, but knowing you won’t be replacing them for years or even a decade is worth the investment. With carpets, its general lifespan is usually around five years. You would also need to perform regular steam cleaning or hire someone to do it to remove stains and smells.
While costly at the outset, hardwood floors deliver in terms of durability, preventing replacement, as in the case of carpeting. You can also opt for classic tiling in the kitchen and bathrooms.
5. Improve Your Curb Appeal
No matter how flawless the interior of your property looks, the fact remains that your property is also judged by its exterior. It can draw in or repel potential tenants, so it’s vital to make it one of your priorities.
Landlords can improve their curb appeal to catch the attention of passersby and create a desire for people to become residents. Invest in hiring a landscaper to create a fantastic curb appeal.
Tips to enhance your curb appeal:
- Repaint the exterior of your property
- Repaint the mailbox
- Plant new grass
- Create a picturesque garden
- Trim weeds
- Place planters in front of the property
Why Should You Perform Property Renovations?
To deliver value to the tenants, you want to renovate your rental space from time to time. This way, vacancies are minimal and you inspire the current renters to stick around for the long haul.
Some of the reasons why rental property renovations are encouraged:
1. You want your property to stand out from the competition
As always, it’s recommended to keep asking what your competitive advantage is over other rentals. By renovating your unit, you can make it more attractive, especially with newer rentals being constructed around your area.
2. You want to maximize energy efficiency
Upgrading your appliances with newer models that are more energy-efficient can help you save on utility bills, which is great especially if it’s included in the cost of rent. If not, renters will also appreciate the reduction in bill costs.
3. You’re planning to sell the property in the future
With a renovated property, you can be certain that the resale value is high. The higher price can be justified through the better amenities and features that are the selling points of your real estate.
4. You can bring satisfaction to your renters
Rental properties that regularly undergo upgrades are favored by renters. They enjoy the updates that make their stay more comfortable. They can also use new and modern appliances, and reduce making property maintenance requests.
Rental property renovations are one of the best strategies to attract long-term renters and optimize your rental property investment. If you need a dedicated partner to manage your rental property in the Silicon Valley area, contact Action Properties today!