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Did you know that not every rental property improvement gives you a dollar-for-dollar return or even a ‘good’ return on your investment?
Knowing which rental property improvements matter and will give you a good return on your investment is important, especially if you’re thinking about selling your rental property soon.
Minor Kitchen Renovations
Renovating your kitchen doesn’t mean demolishing the entire kitchen rendering it useless for a week. Instead, the best return on your investment results from minor, yet helpful kitchen renovations. Many consider them giving your kitchen a ‘facelift’, such as:
- A fresh coat of paint
- Upgraded appliances
- Refinishing the floors
These simple changes may provide a higher return on your investment.
Minor Bathroom Renovations
Minor bathroom renovations are just as profitable as minor kitchen renovations. In the bathroom, potential applicants are concerned about square footage, so don’t think you have to add in a soaker tub – if anything, opt for the walk-in shower and updated cabinets and countertops.
If your bathroom has any of the following issues, repair/replace them.
- Replace cracked tiles
- Update light fixtures
- Update faucets
- Replace/repair countertops
- Refinish the floors
Update the Curb Appeal
It may not seem like much, but your curb appeal can increase your rental property value incredibly. Curb appeal is important because it’s the first thing potential applicants see.
A well-kept exterior often means the interior is in good condition too. Poor curb appeal turns buyers away. To update your curb appeal, all it takes is:
- Manicuring the lawn and landscaping
- Replacing dead/ugly bushes or trees
- Adding a few flowers
- Cleaning the siding/painting it if necessary
Paint your House
It’s amazing what a fresh coat of paint can do to a house. This is especially important if you painted in colors that may be more of a personal preference than well-liked.
Stick with neutral colors and paint the entire level. A neutral white, tan, or gray color will open things up and make your house look more welcoming to potential applicants. Painting doesn’t cost much but a fresh coat of paint does wonders when searching for potential applicants.
Repair/Replace Flooring
Flooring is a focal point in the house. If your flooring isn’t ‘pretty’ or needs repairs, it could take away from the rental property's value.
If you can repair it, go for it. Otherwise, consider an affordable and neutral flooring option that opens things up and really makes the house feel ‘new.’ It’s amazing what a new floor can do. Like paint, flooring can provide a return that’s well over 100%. Our favorite option for rental properties is LVP (Luxury Vinyl Plank) or LVT (Luxury Vinyl Tile), Not to mention, it's cost effective, stylish, versatile, and pretty durable.
Choose your Home Improvements Wisely
While you should fix up what you want on your house, if you’re doing it for value, focus on the home improvements that provide a decent return on your investment. Why throw money out the window when it won’t affect potential applicants? These are great improvements to keep in mind to make the most of your investment.
