When renting out your home, finding and retaining great quality tenants can be anything but easy. Luckily, you may be able to overcome that challenge by investing in the right property renovations.
The right renovations will ensure your property is attractive, which will keep your vacancies low and retention rates high.
In this post, we are going over the best renovations for your rental property for an optimal ROI.
1. Renovate the Kitchen
Do you see a lot of damage and wear and tear in the kitchen? If so, that could be the reason behind the high vacancy rates you may be experiencing.
Your kitchen's look can have a significant impact on whether a tenant stays or leaves. After all, the kitchen is the heart of a home.
When thinking of updating it, your ultimate goal should be to make it functional and practical. Look at the appliances. Are they still working in peak condition? Or, are they outdated and energy inefficient? If the latter, it'd be in your best interest to swap them for energy efficient options that are working perfectly.
How about the kitchen's décor? Don't ignore it. Savvy tenants will want to rent a home that looks contemporary and stylish. When it comes to the countertop, for instance, choose stone or granite.
2. Renovate the Bathroom
This is another room that you should not forget about.
For one, a savvy tenant will want to rent a home that has a spacious bathroom. But even if it's small, you can do improvements to make it look larger.
For instance, install a large mirror, increase natural light, and decrease dividing lines and color contrasts.
Savvy tenants also expect bathrooms to have certain fittings, such as bathroom cabinets, mirrors, a towel ring, and a toilet roll holder. Be sure your bathroom has all of this, and be sure that none of it is in bad condition.
3. Apply a Fresh Coat of Paint
A coat of paint can do wonders to any space. And best of all, it's an easy and relative inexpensive project. Matter of fact, it's one that can be DIYed as long as you know what you're doing.
When selecting colors, make sure to choose neutral ones, such as gray, beige and white in order to give a tenant a blank canvas to work with.
Or better yet, consider allowing your tenants to paint the space in their favorite colors. This can be a great tactic to not only attract, but also retain a great tenant.
If you choose to do so, however, make sure to protect yourself by drafting an addendum. In the addendum, you may want to require the tenant to, among other things:
- Pay a deposit.
- Only have the paint job done by a professional.
- Revert to the original paint color at the end of the lease.
4. Install New Floors
To keep maintenance costs low in the future, consider installing hardwood floors. These are not only easier to maintain, but they also make a home look contemporary.
Other options you may want to consider include carpet and tiles.
5. Reinvigorate the Home's Curb Appeal
The property's exterior is what a prospective tenant will come across first. If it looks boring and uncared for, a prospect will be uninspired to come in. On the other hand, if it creates a good impression, a prospect will be encouraged to step inside.
If your home's curb appeal looks a bit boring, here are some of the things you might want to do to invigorate it:
- Manicure the yard.
- Refresh any hardware on the door.
- Refresh graveled areas.
- Clear any cracks between paving blocks.
- Clean your gutters.
- Add some fresh greenery and flowers.
6. Add Some Lighting
Make your home look lively, larger and beautiful by investing in proper lighting.
The following are some tips to help you in this regard:
- Add plenty of plants to your décor.
- Swap yellow bulbs with bright, white bulbs.
- Give your home a good cleaning, it may be all it needs.
- Brighten up the spaces by painting the surfaces either grey or white.
- Add mirrors, and go for sheer, white curtains.
- Go with furniture that has bright colors, rather than dark colors.
7. Install Eco-Friendly Amenities
Eco-friendly living is becoming more and more popular. Not only is it great for our environment, but it also helps tenants save money on energy bills.
One way to go green is by opting for Energy Star certified appliances. While they can be a bit costly up front, the energy savings can be significant over time.
Some of the popular amenities that are a sure hit with prospects include:
- Air conditioning
- Washer and dryer in-unit
8. Fence the Yard
If your property doesn't have a fence, then consider installing a perimeter fence around it. A property with a fence is particularly desirable to tenants with children or pets.
Depending on the materials you choose, installing a fence can cost you anywhere between $15 and $60 per linear foot.
9. Create an Open Floor Plan
Open floor plans are popular. They have the effect of making a space feel larger and brighter. So, if you have the budget, consider knocking down some walls to open up the space.
Ideally, as this is a major renovation involving structural modifications, go with renovation professionals. A professional will know what walls to knock down and which ones to avoid.
Some renovations, like the aforementioned ones, have a high return on investment. These will help you attract and retain great tenants, enabling you get the most out of your investment.
Get in touch to learn more!