Not all rental property improvements offer a high return on investment. While transforming your backyard into a miniature version of the Gardens of Versailles may seem like an appealing idea, the thousands of dollars that you spent will not be worth it when it’s time to find interested renters. In most cases, less extravagant home improvements such as fixing a roof are more likely to offer a greater return on investment while increasing the property’s value.
If you’re planning on generating passive income from your rental property for years to come, then you’ll want to prioritize improvements that will bring in the big bucks. Here are eight rental home improvements that you should focus on:
#1 Replace the Garage Door
The garage door may not be the most exciting part of the house, but replacing your garage door can add to the home’s functionality, aesthetics, and overall value. It is estimated that you’ll gain 98.3% in recouped costs!
Modern garage doors are manufactured using sturdy materials such as aluminum and fiberglass. Some models even have additions such as insulation and galvanized steel — both useful if your property is located in an area with extreme weather conditions.
#2 Add Manufactured Stone Veneers
Want to enhance your Florida rental property’s curb appeal? Consider installing manufactured stone veneers. Manufactured stone veneers mimic real stone’s appearance, but are actually individual molds made of composite materials. It’s a cost-effective alternative if you want to add some texture to the exterior of your home. What’s more, is that manufactured stone veneers are less heavy than real stone and brick, putting less stress on your home’s foundation.
They are an excellent way to add character to any home. If your investment property has dull, plain walls, consider adding manufactured stone veneers to one portion of the wall. For instance, you could do the entire entryway or one side of the home.
#3 Renovate the Kitchen
There is no need to go all-out in your kitchen, especially if you are not planning on turning your rental property into your primary residence any time soon. Since your rental isn’t your forever home, it’s best to stick to practical improvements that deliver high returns.
Instead of rebuilding your kitchen from scratch, consider minor upgrades such as installing new flooring, changing out the backsplash, refacing the cabinets, and upgrading the appliances for more energy-efficient models. On average, a minor kitchen remodel would cost you around $22,000, compared to a complete overhaul which would cost approximately $52,000.
#4 Remodel the Bathroom
There is one room in every house that will show its age regardless of how hard you try to cover it up: the bathroom. Over time, your rental property’s bathroom will show signs of grime, water spots, and other imperfections that will deter any prospective tenant. A mid-range bathroom remodel isn’t cheap, but a reasonable bathroom remodel will give you a return of around 70.1%.
When remodeling the bathroom, it is best to choose neutral color palettes. You need to keep in mind that your rental property should suit everyone. Colors such as white, pale gray, and beige will make the bathroom look calm and crisp.
Consider adding bathroom features such as support bars and walk-in showers. These will encourage tenants to prolong their stay, as they won’t have to worry about accessibility as they get older.
#5 Replace the Front Door
First impressions often happen at the front door. When a prospective tenant visits the house for the first time, you do not want to greet them with an outdated door. Treat your tenants to a grand entrance by replacing the front door with something more upscale and stylish. This can add major curb appeal to your property.
On average, it will cost you around $1,000 to replace an exterior door, but this largely depends on the material. Steel doors will be priced much higher since they offer added benefits such as insulation. Similarly, doors with decorative touches like transom windows and sidelights will be on the pricier end, as well.
#6 Add a Wooden Deck
The more usable living space your property has, the greater its market value. While installing an outdoor deck isn’t the most “wallet-friendly” project, you can expect a return of 75.6 percent, making it worth the investment. Many tenants prefer properties that offer a connection to the outdoors. By adding a deck, you will be giving them exactly what they’re looking for.
The size of the deck will depend on the size of the home. Composite decks won’t result in the same ROI as wooden decks, but will still yield an impressive return of 63.6 percent. Be sure to add railings, sealants, ledger boards, and other safety features that your Florida property manager will identify.
#7 Add a Master Suite
Tenants are becoming pickier than ever and are looking for rental properties that have a full master suite. Adding a new master suite is one of the most expensive home improvement projects on the list. It will easily cost you around $100,000. Although it can be pricey, adding a master suite will make the property more attractive to prospective tenants. They will be more willing to pay top dollar for a home with a master suite that has a walk-in closet, ensuite bathroom, and more.
#8 Replace the Windows
New windows will make your rental property look brand-new. Aside from their aesthetic benefits, new windows can keep a home’s energy costs down, as well. With more tenants becoming more conscious of their energy consumption, they will be willing to pay top dollar for homes that have energy-efficient windows.
Replace your current windows with ones that are more energy-efficient such as vinyl. Vinyl windows are designed to be energy-efficient, keeping the heat in during the winter, and out during the summer.
Need help deciding where to put your budget? Make a list of what you want to achieve from the project. Do you want to attract more tenants? Do you want to increase the value of your home? Or do you simply want to give your investment property a facelift? Whatever your reasons are, be sure to consult a property management company to ensure that you’re putting your money in the right upgrades.
At Luxury Property Care, we help property owners take the first step toward maximizing their investment properties. Contact us today at (561) 944 – 2992 or complete the contact form on our website to learn more.