Renovations for a rental property can draw new tenants and keep good tenants in place longer. They may even allow you to raise the rent on your property and attract a more desirable tenant. While the possibilities for different renovations for a rental property are endless, not all are cost-effective. Here are some very cost-effective renovations for a rental property that will help you see a return on the investment.
Paint is always one of the best, most cost-effective renovations for any property. It can completely update the look of a home, inside or out. Painting the walls and trim inside a home makes it feel more new or modern. When you choose a paint color, remember that neutrals will appeal to a wider range of prospective tenants. Interior painting is a relatively easy project to do yourself or depend on your property manager to handle. Your property manager likely has a good painter on hand they often partner with to keep cost down.
Exterior paint is usually a little more difficult job than interior, but it is still one of the most cost-effective renovations for a rental property. A new coat of paint can often drastically improve the curb appeal of a home.
#2: New Flooring
Hardwood flooring may be a great investment for your rental property. Renters tend to appreciate hardwood or engineered wood flooring to carpet, linoleum, or even tile. The hard floors are easier to keep clean than carpet, and they often look much nicer. Engineered wood flooring is a good choice for longevity, as it is more resistant than hardwood to changes in temperature or humidity. Renovations for a rental property can be extensive, but changing out flooring is often something that can be managed very quickly and efficiently.
When your rental property has carpeting, you may find yourself having to replace it between each tenant. Keeping hardwood or engineered floors may give you much more bang for your buck over the long haul. Shop supplier and contractor prices if you plan to have it professionally installed. This is another project that is great for your property manager to handle, as flooring is another area that is great to have a professional partner.
#3: Bathroom Updates
While a full bathroom renovation may not be in the budget for your rental property, a mid-range renovation may be more cost-effective than you think. Updating fixtures in a bathroom can be very cost-effective. Also, you can control water flow better, perhaps saving money with utilities. Look for low-flow shower heads and faucets to reduce water consumption. Also, new light fixtures can give a bathroom a completely different look for relatively cheap.
A new tub and toilet may give your bathrooms a huge face lift, as well. Don’t get extravagant, but a new tub and/or toilet can make a bathroom look fresh and clean. Both are draws for prospective tenants.
#4: New Windows
Replacing windows, particularly in much older properties, will help boost curb appeal. It will also lead to great energy conservation in older homes. This can be a great “selling” point for prospective tenants if they will be paying their own utilities, too.
If new windows are not an option in your list of renovations for a rental property, re-caulk around existing windows to cut draft airflow. This won’t update the property as far as curb appeal, but it will seal the home better. This will allow for some conservation in heating and cooling costs.
#5: Kitchen Updates
As with the bathroom, a full kitchen remodel is not likely to make the list of potential renovations for a rental property. However, there are some small, more cost-effective updates you can do to make your rental property more desirable. You may not replace kitchen cabinets, but a very thorough cleaning, and even refinishing, may be in the budget. Sometimes a simple cabinet hardware replacement can give the kitchen a fresh feel.
Replacing appliances and/or sink and faucet can also provide a nice cost-effective lift for the kitchen. Energy efficient appliances will help with utility costs, as well. Check into rebates and tax credits for additional savings on anything you replace for more energy efficiency, too!
All these renovations for a rental property will benefit a property. However, speak with your property manager for advice on what might be the best option for your rental property’s area. You want to pick the projects that will give you some return on the investment. Your property manager can also manage those improvements for you, so you don’t have to spend your valuable time overseeing the project. Cost-effective renovations for a rental property are a great way to attract new tenants.