As a rental property owner or manager, you may find that when it comes to maximizing your rental income, you will need to make periodic improvements to your rental properties. The big question, “How do you balance making the right choices with regards to updates and upgrades with ensuring you are going to get the maximum return on your investment? Thankfully there are a few good tips that can help you improve your property without spending a lot of money, yet they can help you increase your profit margin.
Most landlords will repaint the entire interior of their units and replace the carpet when a tenant moves out. While this might seem like a good idea at the time, in many cases, it is really not necessary. You may find that since most renters aren’t that meticulous, you can have the carpets professionally cleaned and then go over the walls with a cleaner to remove scuff marks and dirt. The only time you should need to replace the carpets is if they are damaged or soiled beyond cleaning. You should still plan to replace carpets every seven years, just be sure to buy long-life stain-resistant carpets to ensure you get the most value.
Modernize the Kitchen
Of all the rooms in any rental unit, one of the first rooms most potential renters look at is the kitchen. When you look at it this way, it becomes easy to see how the importance of updating this room before any other. There are several ways you can do this without having to spend a fortune. For example, if the cupboards are starting to show their age, have them refaced instead of replacing them. If the countertops need to be replaced, consider using durable Formica that is relatively inexpensive yet comes in patterns that look like much more expensive materials such as granite, marble, or stone.
A View from the Outside
Curb appeal has almost as much to do with how renters perceive your offerings as for how prospective buyers see a home they are interested in. First impressions are everything, so consider installing low-cost options that are likely to appeal to potential renters. These can be as simple as adding screen doors to keep out the bugs and storm doors to help keep utility bills under control. The average storm door might cost between $200 and $400, but overall energy savings can add up to significantly more over a short period of time.
The trick here is to find that “sweet spot” between buying cheap materials or doing shoddy work (which is likely to make your renters feel as though you don’t care) and spending more on the upgrades than your budget can afford. The idea is to find a way to do the updates, keep the costs affordable, and ensure you will continue to enjoy a maximum return on your investment now and in the future, as you keep your rental units full at all times.