The first question you may be asking yourself is, why should I invest the time and energy, not to mention, cost, to remodel my rental property at all. Well, if your property has seen better days, it’s most likely time, and the following reasons are just the tip of the iceberg.
- Differentiate your rental property from competitors: Renovate to make your property as attractive as possible to potential tenants. If you have room in your budget, paying a little extra for a more finished look will give you room to raise the monthly rental amount.
- Improve energy efficiency: Adding features like energy-efficient windows and a programmable thermostat can reduce the cost of utilities for future tenants, which is a popular selling point.
- Increase property value: When you improve the available features of the rental property, you’ll increase the resale value.
- Improve renter satisfaction: By including newer and higher quality appliances, updating the countertops or making any other improvements, you’ll not only give future tenants a great experience, but these products will likely require less maintenance. This means fewer calls to you to come fix a broken dishwasher that keeps leaking. This increases renter satisfaction and makes them more likely to renew their lease.
- Deduct renovation costs from your taxes: If you’re simply making repairs to maintain your rental property, any costs you incur for the fixes can likely be deducted from the property’s taxable income. However, anything beyond a simple repair can be labeled an improvement and is not a deductible expense.
Now that you know why you should undertake a remodel project, the following are the most important things to update.
- Kitchen: The heart of every home is always the kitchen, and renters always appreciate a kitchen which is a step above the norm in rental properties. Think stainless appliances, quartz countertops, modern plumbing fixtures and cabinet hardware. None of these things need to be super expensive, as there are many budget-friendly and low maintenance options that will wow your next set of tenants.
- Bathroom: Next to the kitchen, the bathroom is the next most important space in the home from a tenant’s standpoint. Upgraded plumbing fixtures are always a good decision, as is replacing the worn and outdated vanity. Shelving is also a nice touch, along with good lighting and plenty of mirrors.
- Flooring: “Wow, I love this carpeting”, said no one ever! Remove and replace the old, tired flooring with inexpensive and bullet proof LVT (luxury vinyl tile) flooring. Reduce your turnover costs significantly by having flooring which will stand the test of time and is easily maintained. LVT is available in a wide variety of colors and styles to fit any décor and budget.
- Paint: A fresh coat of paint, both inside a unit, and on a building exterior, is one of the simplest, yet biggest difference makers when it comes to sprucing up a tired old apartment or apartment building. Keeping things neutral, light and bright inside the apartment should always be the goal. For building exteriors, feel free to express your creativity, or try out that latest modern trend with some pops of color in the overall scheme.
- Add Popular Amenities: A/C, washer/dryer, and extra storage. Who wouldn’t want those things?! Adding any or all of those items is guaranteed to increase your monthly rental income and pay for themselves in a very short time. So if it is feasible, don’t hesitate to upgrade your rental units with those items.
If your property needs help with remodeling an individual apartment or an entire building, contact BLDG Creative Company at info@bldgcreative.com or 619-796-2560 to schedule a consultation today!
