Renovating rental properties can be a strategic way to attract high-quality residents, increase rent value, and reduce vacancy rates.
Not all upgrades yield the same return on investment (ROI) though, and some renovations can turn out to be costly without adding much value.
Including renovation details in the lease agreement can also set clear expectations for tenants. If you’re a landlord looking to make the most effective improvements to your rental, here are some of the best renovations to consider: Keep reading to learn more!
Modernize the Kitchen
The kitchen is one of the most critical rooms in any rental property. Potential residents often envision themselves cooking and entertaining in this space, so investing in a kitchen upgrade can make your property stand out.
Consider updating countertops, cabinets, or fixtures to give it a modern touch. You don’t have to go for high-end materials—durable, mid-range options can still give the kitchen a clean, polished look that will appeal to a broad audience.
Stainless steel appliances, granite or quartz countertops, and updated lighting fixtures can also create an impression of value and quality.
Refresh the Bathrooms
Bathrooms, like kitchens, have a significant impact on a property’s appeal. Simple updates like new faucets, a modern vanity, and freshly tiled floors or walls can make a bathroom look brand-new.
A walk-in shower can be more appealing than an old tub and can offer better space utilization. You should also consider adding energy-efficient fixtures like low-flow toilets and water-saving faucets, which can lower utility costs—a point of appeal to eco-conscious renters.
Upgrade Flooring
Worn-out carpets and outdated linoleum can make a property look drab, highlighting the importance of regular property maintenance. Modern flooring options like luxury vinyl plank (LVP) or engineered hardwood are durable, easy to maintain, and offer a fresh aesthetic.
LVP, in particular, is water-resistant and can mimic wood or stone at a fraction of the cost, making it ideal for high-traffic areas. Hardwood, though pricier, may also appeal to premium renters, especially in properties with higher rental rates.
Improve Curb Appeal
First impressions are crucial, and curb appeal sets the tone for potential residents before they even step inside. Invest in landscaping, paint the exterior, and replace an old front door with something more modern and inviting.
An attractive exterior with well-maintained pathways, lighting, and some greenery can create a welcoming atmosphere that draws in renters and gives your property a competitive edge in the market.
Energy-Efficient Upgrades
Many renters are looking for eco-friendly and cost-efficient living spaces, and adding energy-efficient upgrades can make your property more attractive.
Consider replacing old windows with double-pane windows, adding insulation, and upgrading to energy-efficient appliances.
Smart thermostats are also becoming popular as they allow renters to control heating and cooling remotely, saving on energy bills and making the property more attractive.
Add In-Unit Laundry
In-unit laundry is a highly desirable feature that can help justify higher rent. If space permits, consider adding a compact washer and dryer.
For properties where adding this feature isn’t possible, consider offering shared laundry facilities within the building. Renters value the convenience of on-site laundry, and it can be a deciding factor for many when choosing a rental property.
Create a Functional Outdoor Space
Outdoor areas, like patios or balconies, add usable square footage and provide residents with a private outdoor retreat.
Enhancing these spaces by adding durable, weather-resistant furniture, grilling stations, or even small garden beds can significantly increase appeal. This is particularly attractive in urban areas where outdoor spaces are limited and valued highly by residents.
Upgrade Security Features
Security is a top priority for most renters, especially those with families or who live in urban areas.
Simple upgrades like a video doorbell, outdoor lighting, and secure locks can improve the perception of safety. Installing smart locks or keyless entry systems can also add a modern touch and provide added convenience for residents.
Improve Lighting Fixtures
Outdated or dim lighting can make your property appear old or gloomy, which can negatively impact its curb appeal. Upgrading to LED lighting or installing modern light fixtures in high-traffic areas like the living room, kitchen, and bathrooms can make a big difference.
Natural light is also appealing, so if possible, consider adding windows or skylights to brighten dark rooms.
Why Work with a Professional Property Management Company?
While these renovations can significantly improve the value of your rental property, managing the planning, budget, and tenant coordination can be overwhelming. This is where a professional property management company can be a valuable partner.
Expertise in Renovation Planning and Budgeting
Property management companies have experience with what works in rental renovations and can guide you on which upgrades yield the best returns for your specific property.
They can assist in creating a renovation plan that maximizes ROI without unnecessary expenses.
Streamlined Contractor Coordination
Professional property managers often have established relationships with reliable contractors, ensuring that renovations are done correctly, on time, and within budget.
They handle the vetting and coordination of contractors, freeing you from this time-consuming responsibility.
Minimized Vacancy Time
Renovations often require tenant relocation or temporary vacancy. A property management company can coordinate renovation timing with leasing schedules and tenant screening to minimize vacancy periods, reducing the impact on rental income.
Ensuring Resident Satisfaction and Retention
Professional managers have a pulse on what residents value most, meaning they can suggest strategic improvements that enhance resident satisfaction and retention.
This reduces turnover and increases the likelihood of long-term tenants who care for the property.
Bottom Line
Choosing the right renovations can elevate your rental property’s value and appeal, making it more attractive to potential residents while increasing its profitability.
However, managing renovations can be complex, particularly for landlords without experience in real estate management.
Partnering with a professional property management company allows you to leverage their expertise in planning, budgeting, and resident management, ensuring your investments yield the best possible returns.
Get in touch with Real PM Services to help you decide the best and most profitable renovations ideal for your rental property.
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