Your rental property can be renovated to attract new renters and maintain the current residents. Choosing which alternatives for a rental property renovation to make or which materials to invest in can, however, often feel like picking six of one and half a dozen of the other. There can be significant differences between the two options in the long run, but at first glance, they may all look similar. Too many choices can make it difficult to make an informed decision.
The cost of maintaining a rental property is often high, but the cost of not having paying clients is even higher. In a highly competitive rental market, quality candidates want to live in an environment that makes them comfortable.
Therefore, keep your property clean and updated if you want a vacancy rate near zero. There are still ways to modernize an aging property without breaking the bank. Let’s look at some cost-effective ways to renovate your rental property.
Most efficient and affordable alternatives for rental property renovation
Paint
Retouching walls and finishing with a fresh coat of paint is one of the most affordable renovating jobs for any rental property. Choose neutral hues that appeal to a wider spectrum of potential occupants. Take into account utilizing your own employees to complete the task; this way, you can maintain control over the work’s quality without the help of a potential vendor. You can achieve this job on your own to keep expenses down and operations simple.
Windows replacement
When attempting to promote a property, real estate agents frequently stress how important curb appeal is. Renovated windows are a clever approach to attracting potential tenants while delivering significant long-term energy savings thanks to improved insulation performance.
If your rental property has outdated aluminum or wood windows, you can scare away potential tenants without even realizing it. Outdated windows are not aesthetically pleasing, ineffective at reducing street noise, or energy efficient. Possibly even old wood windows won’t open. New wood or vinyl replacement windows will increase the value of your home and reduce your tenants’ utility costs.
Consider replacing the flooring
The popularity of hardwood flooring is still increasing. Renters frequently choose wood or engineered wood planking over linoleum, tile, and carpet because it is long-lasting, simple to maintain, and has a classic appeal.
Natural resistance to changes in humidity and temperature serves a purpose in engineered wood. Planks don’t budge, contract, or swell as natural hardwood does. Engineered wood flooring is suitable for moist places like a front entrance, mud room, or bathroom because of its waterproof properties.
Over an existing floor, planks can be floated, glued, or stapled. Some even come in parts that snap together to create a tight seal and interlock. Compare prices from various vendors to see if you can replace your current flooring at a discount. If your home currently has natural hardwood flooring, you might want to refinish them to improve its aesthetic and durability.
Renovate bathrooms
When attracting new tenants, a newly renovated bathroom can be a significant selling point. Many tenants look for modern and updated bathrooms, and a renovation can help make the property more attractive to potential renters.
It can also address safety concerns such as outdated plumbing, faulty electrical systems, and damaged flooring. Addressing these issues can improve the safety of the property and reduce the risk of injury to tenants.
However, you should consider purchasing faucets, shower heads, and fixtures that are low-flow models to save up to 30% of water usage.
Remodel Kitchen
A simple kitchen redesign offers a considerably higher return on investment than a major remodeling job, similar to the bathroom. For instance, replace the doors alone and update the hardware rather than replace the complete cabinet.
Search for a new, midrange-priced sink and faucet set and upgrade your appliances with energy-efficient alternatives. Don’t forget to research any tax rebates or refunds that might be available.
A specialist’s assistance is needed when installing appliances. If you want to ensure that your appliances get the maintenance they require to keep working over time, think about getting a service contract.
Upgrade the outdoor living space and maintain the landscaping
Your prospective tenant needs to be pleased with the yard before you can amaze them with all the inside improvements you’ve made. If offered, outdoor living space is a significant selling point for tenants.
Although beautiful green grass is gorgeous, maintaining it takes a lot of time. Think of a landscape plan incorporating pavers, mulch, and small grassy areas that provide curb appeal to the yard without much work. With the landscaping, perhaps a new front or storm door can attract the eye and enhance the curb appeal.
New concrete is another project that can increase value without going over budget. Although worn-out driveways and sidewalks may still be usable, they will not persuade prospective tenants to accept a lease. Even though it may be one of the more significant projects, if necessary, it will more than pay for itself by drawing in and keeping long-term tenants.
Helpful tips to help you choose the most affordable alternatives for your rental property renovation
- Prioritize renovations that will increase rental value: Consider the potential return on investment (ROI) before starting any renovation. Will the rise in renovation affect the rental value of the property? Will it attract more renters? Focus on renovations that increase ROI, such as upgrading the kitchen or bathroom or adding extra storage space.
- Look for inexpensive materials and fixtures: To keep costs down, look for affordable but durable materials and fixtures. For example, you might consider using laminate flooring instead of hardwood or choosing a less expensive countertop material for the kitchen.
- Don’t over-renovate: While updating the property is essential, add unnecessary features or fixtures that will only increase the rental value. Stick to the essentials and focus on making functional improvements.
- Consider DIY options: If you have the skills and expertise, consider tackling renovations yourself. This can save you money on labor expenses, but weigh the time and effort involved against the potential savings.
- Hire a reputable contractor: If you hire a contractor, research and choose a respected professional with experience in rental property renovations. Get multiple quotes, compare prices, ask for references, and check them thoroughly.
Overall, the key to cost-effective renovations for a rental property is to prioritize updates that will increase rental value, focus on affordable materials and fixtures, avoid over-renovating, consider DIY options, and hire a reputable contractor if needed.
Choosing the most cost-effective rental renovations for your property becomes significantly more manageable when you take into account budget and time limits, balance expected gains, and pay close attention to tenant feedback.
