Top 5 Revenue Boosting Renovations For Your Rental Home
One of the main reasons people invest in rental property is to generate a passive stream of income. They also appreciate the added benefits of having a secondary home to use if they need it, and that it adds to their investment portfolio. But to maximize your income, it is important to create a space that people will feel safe and comfortable living in. This could require routine maintenance, or it could mean you need to do some major home renovations in order to bring in your desired income. Here are 5 tips to revenue-boosting renovations:
Avoid Over-Renovating Your Rental Home
It can be tempting to go all out and upgrade your investment property with the latest fixtures and features. It is important to remember that you won’t be living there, and the tenants that will be probably will not be treating this home like it is their forever home, because it isn’t. Don’t spend a lot of money to impress tenants who may not even be there 2 years from now. Your job is to make the home look livable and welcoming so that tenants can come in and add their own style and personality to it. Keep in mind the average price you will be getting from the tenants on a monthly basis and keep your expenses in line with your income.
Go Back To Rental Home Basics
Fancy remodels and renovations are pointless if your home isn’t clean or well maintained. Performing a deep clean at every turnover can do wonders for a distressed property. If you don’t have the time or desire to do this, hire a professional. Tenants are looking for a clean place to call home, and even the most impressive upgrades won’t distract from a dingy or dirty property. Paint the walls, replace fixtures, and perform routine maintenance, so your home continues to appeal to potential tenants over time.
Repair First, Then Replace
Before you spend money replacing items in your home, check into the cost of repairing it first. This rental property doesn’t necessarily need the newest and coolest gadgets, it simply needs systems and appliances that work correctly. Consider a deep clean on the carpets before you go in and rip up all of the flooring, or use cleaning products to clean the walls before spending money on a full paint job. You may spend the money to replace these things in your own home but should consider repairing things in a rental before spending significant money to replace them. Property managers, like Murrieta Property Management, can keep an eye on the condition of your home and let you know when items need to be repaired in attempts to avoid a costly replacement.
Focus On Kitchens and Bathrooms In Your Rental Home
If you’re going to do a major remodel or renovation, focus on the bathrooms and kitchen. These are the rooms that will “make it or break it” for many tenants. If you are putting together a renovation budget, allocate a majority of the funds to these spaces. An upgraded kitchen or bathroom also helps significantly in the resale value of the home, which may be important to landlords who plan to sell the house. Putting new appliances in the kitchens and bathrooms prevents the costs and inconveniences that come with repairing and replacing older units.
Invest In Rental Home Curb Appeal
A little color in the yard can do wonders for a rental property. Simple things like planting flowers, trimming trees, and mowing the grass before a showing can help give tenants a positive first impression of the home. Make sure gates are working properly and remove any obstructions from the driveway or walkways. Tenants aren’t expecting perfection, but taking care of the yard is a clear sign that you, the landlord, are proud of the home and take good care of it.
Landlords in California often seek advice from Benefit National Property Management in Murrieta (or a property management company in their area) for advice on which renovations will help them attract quality tenants and improve their ROI. A professional property management company can not only tell you which home renovations your rental property needs, but also help connect you with local contractors and oversee the progress in your absence.
Remember to be methodical and strategic with your rental home renovations. You want to upgrade the property enough to entice high-quality tenants and get your home rent ready, but not so much that you end up losing money in the long run. Ask yourself if the renovation is necessary and if it is necessary right now. If you need help deciding where to start when it comes to rental home renovations, contact Benefit National, your Murrieta property management company today and see how you can improve your bottom line!