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Which Renovations Give You the Best Return On Investment?

Contemporary Blue Kitchen with Renovated Windows, Cabinets, and Countertops

If you are like any other investors, you already distinguish that improving your Central rental properties is a critical process to enticing quality tenants. At the same time, regular property improvements are also the key to adding value to your investment. The key thing to understand relating to home improvements is that some add more value to a property than others. For Central property managers, appreciating which improvements afford the best return on investment is basic to your business’s long-term success and profitability. Here is a consideration of the top renovations that industry experts say will afford the best return for the cost.

Garage Door: If your rental property has a garage, one of the easiest and most cost-effective ways to add value and increase curb appeal is to replace or upgrade the garage door. It’s not really crucial to go really expensive on your new garage door to get this benefit, either. Even an ordinary garage door of good quality will characteristically reward you with a high return on your investment and significantly improve the look of your property. Pro tip: Pair your new garage door with a smart opener to enhance even more tenant attraction and appeal.

Stone Veneers: Speaking of curb appeal, updating your rental home’s exterior is on top of the list of relatively inexpensive updates that offer big returns. Commonly, the upgrade that will add the most value to your property is manufactured stone veneers. According to a 2021 Bankrate report, replacing vinyl siding with stone veneer around an entryway, pillars, or the lower third of your property’s front-facing exterior walls helped sellers to recoup a lot of the cost of installing it. Picking out this upgrade before you arrange to sell may hold even greater profit potential, making your rental home more marketable and allowing you to charge a higher monthly rent.

Kitchen Remodel: For your rental property’s interior, the main upgrade that will inherently maximize your property’s value is remodeling the kitchen. People love their kitchens, and tenants are no exception! In a new nationwide survey, several home sellers claimed that kitchen updates offered the best return on investment (ROI) for the money spent. But definitely, that doesn’t expressly mean you need to openly re-do the entire kitchen to see your property values rise. Rather, minor updates, such as refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet, can rehabilitate your property’s interior without breaking your budget.

Updated Bathrooms: The same is true for bathrooms, where unless your property’s facilities are unusually dated or aesthetically bad, even small renovations can contribute to outstanding jumps in value. Consider covering old, worn tile tub and shower surrounds with a new fiberglass overlay. Include a new vanity and mirror, or consider painting the room a fresh, light color. Replace worn vinyl flooring with tile for an even bigger upgrade. The long-term benefits of using tile are even greater since tile tends to last for decades without needing replacement and has a more chic and elegant feel than laminate flooring, notwithstanding the price tag isn’t that much higher.

Small Updates: As you orchestrate your rental property improvements, don’t leave out the small upgrades that can make a radical difference. For instance, simply replacing outdated light fixtures in strategic areas of the home can make the entire property look better. On top of everything else, adding a lot of appealing outdoor lighting, painting the front door a marvelous new color, or replacing worn-out window blinds can all yield high returns relative to the cost. The same goes for light switches and outlet covers, cabinet hardware, door knobs, and other small details. These small updates are decently priced while accordingly improving the look and feel of your rental property. Pro tip: Upgrade to a smart thermostat, smart locks, and other tech-friendly features to attract tenants that instant!

Arranging the correct property improvements and upgrades is crucial to your investment’s long-term rental success. By carefully planning and putting these and other home improvements into your Central rental property’s operating budget, you warrant that your property stays competitive and continues to experience great increases in resale value.

 

Would you fancy more information about how to develop a rental property that both renters and buyers will definitely want? Give Real Property Management Baton Rouge a call at 225-389-6860 today. We can certainly aid you to evaluate your property’s current condition and share low-cost measures to secure that your property stays competitive in rental and resale markets.

 

Originally published: March 12, 2021

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