Five Cost-Effective Rental Property Improvements (+ 5 Bonus Ideas)
One of the best ways to ensure your tenants are happy, reduce turnover, and ensure a steady stream of passive income is to invest in rental property improvements. Routine maintenance is critical in the upkeep of a property and will reduce expensive emergency repairs. But not all home improvements are cost-effective, and not all of them will maximize your ROI.
Rental improvements can be broken down into categories: low-cost improvements that moderately impact the value of the home, and higher-cost improvements that significantly impact the value of the home. The improvements you make to your property depend on your current budget and your plans/goals for the property.
5 Low-Cost Rental Property Improvements
These improvements typically cost under $1000 and can make a big difference in the overall feel and functionality of the home.
Improve Curb Appeal For Your Rental Property
The front yard, driveway, and exterior entranceway say a lot about a home. Spending a few hundred dollars and a weekend or two of work on the yard can significantly increase the look and feel of the home. Some budget-friendly things you can do to spruce up the exterior of the home include:
- Mow the grass
- Pull weeds
- Add a few bags of mulch
- Plant flowers
- Pressure wash the driveway, front sidewalk, and entranceway
- Clean the mailbox
- Wash windows and doors
You could hire a professional landscaping company to come in and do this project for you, but if you’re trying to stick to a budget, doing the work on your own is a lot more cost-effective.
Add A Fresh Coat Of Paint To Your Rental
Painting is another rental property improvement that doesn’t cost a lot when you do it on your own. Adding a bold accent wall to a living room or simply repainting white walls can make a big difference in the overall feel of a space. Painting your entire home can get expensive, especially if you choose to hire professionals. But touch-ups and accent walls will only require a few gallons of paint. Don’t forget the baseboards and the door frames as well, and if your home has a fireplace, consider giving it a modern whitewash.
Add A Washer/Dryer As A Feature To Your Rental Property
Modern renters are looking for a move-in-ready space that has the appliances and systems they need already in place. While most rentals come standard with modern kitchen and bathroom appliances, a lot of them have a washer and dryer. If you’re trying to fill a vacancy, offering a washer and dryer may just set your rental apart from the competition. This convenience is worth it to many modern renters. Many are willing to pay a slightly higher rent if it means they don’t have to lug all of their laundry to a laundromat once a week.
Update The Light Fixtures In Your Rental Property
Lighting plays a big role in the ambiance of a home. Updating the light fixtures can be a budget-friendly way to improve the look and feel of the home. Replace fluorescent lights with something softer, and upgrade to energy-efficient light bulbs while you’re at it. If your property has a lot of windows, make sure they are good, safe, high-quality windows that allow plenty of natural light to fill the space.
Replace Cabinet Doors In Your Investment Property
If the kitchen is feeling a little outdated, replacing the cabinet doors can freshen up the space without compromising your budget. If you invest in high-quality wooden cabinet doors, you can paint over them to match the aesthetic of your kitchen. You can even add new hardware to step it up a bit. You’ll be amazed at how an easy change-out of the cabinet doors can change the look and feel of the kitchen.
5 Best Rental Property Improvements To Maximize ROI
If you are looking to make a significant improvement to the home that will increase the value of the home, you’ll have to do more than mow the lawn and replacing cabinet doors. If you are looking to put your money into a dramatic improvement to a rental property, consider these five projects that will maximize your ROI:
Kitchen Remodel
On average, it costs $20,000 to update a kitchen. The average return on investment is around 79.3 percent. If you’re looking to make a big difference and significantly increase the value of the property, the kitchen remodel is the way to go. A major kitchen model typically includes new flooring, cabinets, counters, and appliances.
Bathroom Remodel
A typical bathroom remodel will cost on average $19,134 and the average return on investment is 70.1%. A major bathroom remodel includes adding on to an existing space or building a completely new bathroom. A minor remodel involves changing out the existing system and appliances in the existing bathroom (tub, cabinets, sink, etc). The cost will vary depending on how much you change. Improvements to a bathroom almost always boost the value of a rental property.
Deck/Patio/Porch Addition
Modern renters appreciate a livable and functional outdoor space. Adding on a porch or patio, or simply revamping the one that is there is another way to attract future renters and keep current renters satisfied. Adding an outdoor space usually costs right around $4,000 with an average return of 75-80%.
Replace Windows
Replacing windows may not seem like a glamorous or significant rental property improvement. However, it can upgrade a property in many ways. New windows make the exterior of the home look better. Energy-efficient windows can also improve the way a home functions and lower utility costs. New windows are essential in keeping a home safe and secure and can increase your home’s value significantly. A $10,000 window replacement project could offer an 85% ROI
Front Door Replacement
The front door is a portal into a home. An old, outdated, chipped or dusty front door can really diminish the look of the exterior of the home. A brand new front door will brighten up the front of the home, as well as add an extra level of protection for those living inside. Replacing your front door with high-quality steel doors will prevent leaks and boost the insulation of your home. The cost to replace the front door is typical between $1000-$1500 but can offer a return of 75%.
Next Steps After Making The Decision To Improve Your Rental Property
If you have a property management company, they will be able to tell you what your home needs, what modern renters are looking for, and how to best use your money to upgrade the property. Doing it all on your own and don’t have a property management company? Maybe it’s time for that to change.
If you own property in Temecula, Murrieta, and surrounding areas, connect with our team today to see how we can make owning (and maintaining) your rental home easier and more cost-effective.
