As a real estate investor, you should aim to increase your property’s value over time. This will allow you to raise your rent or sell your property at a profit. But what improvements should you invest in without breaking the bank? In this article, we’ll cover seven cost-effective improvements that can cause your property to appreciate.
What Property Improvements Should You Invest In?
If you’re a landlord who’s looking to keep your rental property occupied, you need to stay up-to-date on the latest trends. Pay attention to what other rental property owners in your chosen area offer. You will want to outdo your competitors by providing big-ticket items that your target market is likely looking for. For instance, if other rental properties in your area offer an in-unit washer and dryer, you should offer that, too. Not only will you be able to give your tenants what they want, but you may also be able to raise your rent. It’s a win-win!
Below are a few examples of property improvements that have the potential to boost your investment’s value:
#1 Kitchen Remodel
A kitchen remodel is one of the easiest ways to spruce up your space. It pays to improve the kitchen as many tenants are looking for modern homes with spacious places to cook and that feature updated appliances.
When remodeling your rental property’s kitchen, it’s important to start small – stick to inexpensive upgrades such as replacing the faucet, installing new knobs on the kitchen cabinets, and so on. You could also consider energy-efficient features such as Energy Star appliances and smart lighting systems.
#2 Bathroom Remodel
There is another room in your rental that has the most potential to improve its value: the bathroom. This remodel can attract tenants, as one of the things they’re looking for is a clean bathroom. Remember that your tenants will be put off by the thought of using a bathroom that’s been used thoroughly before. When showing your property to potential tenants, you need to make them think that the bathroom is brand-new.
Like the kitchen, you shouldn’t go overboard because your tenants likely don’t need over-the-top upgrades. By changing the paint, re-grouting the tub, and replacing the toilet seat, you’ll be able to boost your bathroom’s appeal.
Pro Tip: If your rental property was built years ago, it likely looks dated by now. Property management companies in Broward county can help you check out interior design trends and decide how to transform your bathroom’s look without breaking the bank.
#3 Make Use of the Attic and Basement
Space sells. Not only does more space allow your tenants to squeeze more people into the property, but throughout the years, your tenants will need more space to store their belongings. This is why the more space your property has, the more prospective tenants you will have. But to add more rooms to your rental, you’ll have to break down or build new walls, which unfortunately isn’t cheap to do.
The solution? Work with the space you currently have. For example, convert your attic or basement into a usable space such as a bedroom or exercise room. As a rule of thumb, the more versatile the space is, the better it will be for potential tenants.
#4 Boost the Curb Appeal
Want people to fall in love with your property the moment they pull up into the driveway? Improve the property’s outside appearance. When showing your property, you should aim to make a good impression from the get-go. Landscaping upgrades such as new pots and plants can boost its curb appeal. Simple replacements such as a brand-new door can make your home look brand-new, too. Plus, by making sure your lawn is always well-manicured, you can show tenants that you truly care for your property.
Boosting the curb appeal doesn’t cost much. If you have a green thumb, you can boost the garden’s appeal by yourself. But if you’d rather have a professional handle it, partner with a property management company in Broward county.
#5 Add a Deck
The reason why a deck can increase a real estate investment’s value is that it adds more space. By building a deck, you’ll be able to give your tenants a bigger living area. In general, more space can cause a property’s value to go up.
According to Remodeling, the average cost to build a deck is $14,360. It’s on the pricier side of property improvements, but real estate professionals believe that it offers a resale value of about 76 percent. So, if you plan to sell your property down the road, adding a deck is a good idea.
#6 Invest in Energy-Efficient Upgrades
Today’s tenants are energy-conscious. They’re worried about their carbon footprint, which is why they prefer to rent properties with energy-efficient upgrades such as smart lighting systems, AI-powered climate control, and more. Unfortunately, these upgrades aren’t cheap – the cost to install smart lights, for instance, ranges from $1,000 to $3,000.
The good news is you can make small changes around your home to improve energy efficiency. For example, you can seal the gaps around doors, replace drafty windows, and replace appliances with Energy Star-rated ones. Your tenants will be grateful for these upgrades since they enable them to lower their energy bills.
#7 Give Your Home a Fresh Coat of Paint
Is your rental starting to look a little worn? A low-cost way to increase its value is with a fresh coat of paint. By repainting your property, you’ll be able to make it look less worn-out and boost its overall appeal. This improvement can raise your property’s value by about $4,000!
If your budget doesn’t allow you to repaint all of the walls, start with the front door. A new coat of paint can add charm to even the oldest, dullest surfaces.
Looking For a Property Management Company in Broward County?
Property managers can oversee the property improvements in your South Florida rental. If you have an investment property in Broward county, partner with Luxury Property Care to benefit from years’ worth of expertise. We provide full-service property management that’s designed to yield a good return on investment (ROI) and improve your property’s value over time.