You can’t run a rental property without conducting property improvements at some point. It’s a vital part of any property investment. If you want to improve your property, however, you don’t have the funds to do so, you’re in luck. In this post, we’ll take about the improvements you can do to boost your property’s value, and make sure that your property remains attractive.
Why Renovate Your Property?
Why do you need to renovate your real estate investment, anyway?
The answer is that renovations (if chosen correctly) can improve your property’s value, and in turn, improve your return on investment (ROI) over time. Besides that, we’ve outlined a few of the benefits of renovations below:
- Follow the Building Code. Your rental property should be habitable. In other words, it should follow the local codes, otherwise, it will be deemed uninhabitable. When that happens, you won’t be able to rent it out until you deal with the code-related problems. If you don’t want to get in trouble with the law, follow all of the legal to-dos.
- Improve Your Real Estate Investment’s Value. If you choose your property improvement correctly, it can increase its value. As a result, you will be able to boost your rental rate as well as your overall ROI. But be careful! Not all renovations improve your property’s value, so make sure to partner with a professional property management firm that knows what renovations work.
- Raise Your Rent. If your property is the best on the block, you’ll likely be able to boost your rent without eyebrow raises from your tenants. They’ll be more willing to pay a premium price if must-have amenities, such as an in-unit washer and dryer, will be available to them.
- Reduce Your Maintenance Costs. Energy-efficient upgrades such as smart thermostats, smart lightbulbs, etc. can reduce your ongoing maintenance costs. Not only that, but your tenants will be glad that you’ve given them a way to save more money on their utility bills.
- Reduce Tenant Turnover. When your tenants like the way that they live, they’ll be less likely to move. You’ll have fewer vacancies, which is always good news, as that means you no longer need to go back to the beginning.
What are the Best Budget-Friendly Upgrades?
You don’t need to break the bank if you properly budget your investment property renovation. After all, it is a rental property – it’s bound to go through regular wear and tear at a faster rate, given the number of people that live in it over a short period of time. With that said, it would be wise to opt for low-cost ways to spruce up your property.
As one of South Florida’s top property management companies, we’re confident that we know what works and what doesn’t. Our investment management agents have taken the time to break down the best upgrades for you below:
#1 Space-Saving Storage Solutions
Give your tenants what they want – storage solutions.
Start with space-saving storage solutions as you can’t go wrong with this upgrade. All tenants, whether first-time tenants or retirees, will need to store their stuff somewhere. If you don’t want to purchase furniture, you can turn the unused spaces into cupboards, closets, cabinets, and more. It would be better to build custom cabinets if your home’s layout is wonky, as well.
Here are a few creative ways to convert the wasted space into useful space:
- Turn the space beneath the bed into storage.
- Add a custom-made plywood bench to the entryway. It should have a flip-top opening so your tenants can convert it into storage.
- Turn the outdoor bench into storage for gardening gear, such as hoses, boots, and so on.
- Make a custom-made cubby to be placed below the desk.
Whatever you do, don’t turn a bedroom into a walk-in wardrobe for the master bedroom. Walk-in wardrobes are luxurious, but they’re not exactly practical for your tenants. It would be better to provide them with an empty bedroom that they can convert into whatever they want.
#2 Add an Office Space
Did you know that the CEO of Facebook thinks that 50 percent of its workforce will be working from home by 2030? Even if your tenants don’t work at Facebook, it would be safe to assume that the rest of the workforce will follow suit soon.
The pandemic has shown the world how important it is to have an office for work-from-home times. Make sure that your rental is ready in case your tenants need to work remotely. Even if your real estate investment doesn’t an office, you can close off a section to create a space that’s conducive for work.
#3 Replace the Kitchen Cabinet Doors
Want to make your kitchen look brand-new for your new tenants? Prepared to spend $12,567 to $34,962 – it’s not low-cost at all.
Fortunately, you can still make your kitchen look sleek by sprucing up nothing but the kitchen cabinets. Repaint or replace the doors with more modern ones. Swap out the hardware, as well – no one wants to move into a home with grimy and greasy cabinet door handles!
And before you DIY your kitchen cabinets, think about the benefits of working with a property management agent. Not only will they oversee the work, but they’ll also make sure you get the best deals by negotiating on your behalf. That’s because they have established a wide network of vetted vendors that can conduct the repair works at a fraction of the cost.
#4 Pressure Wash
Pressure-washing is a low-cost way to spruce up the space outside your property. For as low as $300, you can make your driveway look as sparkly clean as the day the property was constructed. You will discover that the driveway you believed to be gray was white all along!
Partner with a South Florida property management firm to help you find a professional pressure washer. Pressure-washing should be done by the pros, as they know how to control the water and make sure they don’t pressure-wash the things that shouldn’t be pressure-washed.
The Bottom Line
As you can see, there are several benefits to improving your property. You can improve your return on investment, attract tenants, and more. Improvements are vital to the future of your South Florida rental, but that doesn’t mean you should break the bank every time. With these low-cost tips, you can improve your property and impress your tenants.