Every real estate investor wants to see the value of their investment property increase. Rather than waiting for it to naturally appreciate, there are certain improvements you can do to “force-appreciate” your rental property.
As an investor, you need to ensure that the renovations positively impact your return on investment. Simply put, you should avoid improvements that won’t attract potential tenants.
In this article, we’ll cover a couple of improvements that can increase your property’s value and boost your bottom line.
#1 Restructure the Kitchen
Renovating a kitchen can add five to ten percent to your home’s overall value. So, if you’re looking for a worthwhile upgrade, make sure your kitchen is well-designed. Not only will this attract and retain tenants, but it will also allow you to raise your rent. If your kitchen is looking old and outdated, consider opening it up. The kitchen is a high-traffic area, so you shouldn’t keep it within four walls. Opting for an open plan can allow your tenants to walk around freely. An open-plan kitchen is also great for entertaining, especially for tenants that love having people over.
#2 Repaint the Kitchen Cupboards
On a budget? A low-cost way to boost your rental property’s value is by repainting the cupboards. This can instantly enhance the appeal of the kitchen. Top it off by replacing the handles with new hardware for a sleek look.
Pro Tip: Check for mold growth in your kitchen cupboards before painting them. If your tenants discover that there’s mold there, you could find yourself in trouble.
#3 Replace the Tiles
Your tenants will likely use the kitchen each day. This means that the floor won’t stay flawless for long. To keep the kitchen looking clean, opt for dark-colored tiles and grout to “disguise” the dirt. You should also consider replacing the kitchen countertops with granite, as this can last as long as one hundred years. They’re also incredibly durable and are resistant to moisture, scratches, and so on.
#4 Remodel the Bathroom
Remodeling your bathroom can add four to five percent to your home’s overall value. When potential tenants attend your showing, chances are that they’ll want to see the bathroom. This is because the bathroom is one of the most used rooms on the property. Hence, it’s important to do some minor improvements to your South Florida rental to entice potential tenants. Here’re some clever ways to spruce up your bathroom without spending so much.
Start by replacing the small items such as the showerhead and toilet seat. If you’re replacing a tenant, then these items are probably already dirty and disgusting. No one wants to move into a house that’s obviously been used. Then, consider adding storage space to the bathroom. Shelves are a great way to go if you’re remodeling a tiny home.
Have the budget? Add a bathroom to every bedroom. Having one bathroom per bedroom is a big selling point for tenants that are planning on subletting the rental property. Speak to a property management company to know more about subletting.
#5 Add a Bedroom
The reason why potential tenants have turned down your property is probably that it doesn’t have enough bedrooms. Adding a bedroom can be costly, but it can open up your rental to a wider pool of applicants. For instance, by adding one bedroom to your two-bedroom home, you can attract families of four or more.
If you can’t afford to extend the property, you can opt to divide an existing bedroom into two. For example, if your master’s bedroom is massive, you can cut it in half, creating a brand-new bedroom.
#6 Enhance the Curb Appeal
Think the interior is what attracts tenants? Think again! For a positive impression, enhance your South Florida property’s curb appeal. A garden that’s full of weeds and foliage isn’t a good look, so you better start sprucing it up. Shape the shrubs, mow the lawn, and more. The goal is to get your garden to look like it could be in Better Homes and Gardens.
If you have the budget, consider adding a patio. This can be a huge bonus for tenants that love to invite others over. Plus, a patio can add living space to your home, resulting in higher rent.
#7 Paint All Over
This is the simplest way to show your potential tenants that you take property management seriously. Buy a couple of buckets of paint and start repainting the interiors of your investment property. Choose neutral shades so your potential tenants won’t have to wonder if their furniture will clash with the colors. While an accent wall can be appealing, be careful not to overdo it. Not all tenants will want to live in a house that’s too artistic.
Pro Tip: Since repainting can span a couple of days, you can benefit from hiring a property management company with contractor waiting services. That way, you won’t have to personally oversee the work.
#8 Install New Windows
Installing new windows is one way of letting the light in while enhancing the energy efficiency of your home. While windows can last 15 to 20 years, you should consider replacing them if better windows are available. For instance, consider swapping them for double-pane windows which can silence outdoor sounds. You could also opt for insulated windows if your property is in a particularly sunny area in South Florida. That way, your tenants won’t have to keep their air conditioner running to keep the home cool.
We have talked about eight effective hacks to boost the value of your rental property. There are other certain renovations like upgrading your backyard or installing solar panels on your rental property that can increase the overall value of your property.
Hire a Property Management Company
There are so many other renovations that you can do to your investment property. You can pinpoint your property’s “problem” areas by hiring a property management firm such as Luxury Property Care. That way, you can ensure that you’re putting your money into improvements that can actually increase your investment’s value.
Our property managers will begin by conducting an obligation-free evaluation of your investment property. We’ll present our findings to you and suggest the specific areas of your home that need freshening up. We will then work with reputable vendors to provide your home with the care it deserves.