When you purchase a rental property, you intend to generate income from that property. Generating income from the monthly rent is not the only way that you can make a profit from this property.
You can also make a profit when the property increases in value.
When the value of the property increases, your overall wealth increases. You will have more equity in the property which can help you purchase additional properties.
Or, when the property significantly increases in value, you may consider selling it for a larger profit.
There are ways that you can improve a property to help increase its value. Many of these improvements can also help you charge higher rents if you are planning to sit on the property for a while.
7 Ways To Renovate A Rental Property To Add Value
1) Remodel the Kitchen
Updating a kitchen can significantly increase the value of the property both rent-wise and its overall property value. The kitchen is the second most used room in the entire house and one that many people find as the “heart” of the home.
Revamp cupboards, change countertops, refresh paint and flooring, and add new fixtures, including a new faucet for the sink. You should also consider updating the lighting to a modern light fixture with LED bulbs and replace plugs, switches, and covers for a fresh new look.
If you want to take the remodeling to the next level, consider replacing the appliances with new ones. However, replacing appliances should only be done if the other ones are old and unattractive.
2) Update the Bathroom
The bathroom is the most used room in the entire house. It is also exposed to water and steam on a continual basis. This means that fixtures, walls, and countertops can become old-looking really fast.
The bathroom is the most often remodeled room in a home.
Refresh the paint and flooring. Replace the toilet and sink cabinet, and give the shower area an update. Add new showerheads and faucets and update plugs and light switches.
Modernize the lighting and make sure that you put bright LED bulbs in the bathroom because people want to be able to see clearly in the mirror.
One thing to remember is that almost all buyers and many renters will make their final decision based on the condition of the bathroom and kitchen in a home.
3) Invest in the Landscaping
Curb appeal says a lot about your home. Ensure that the lawn looks good, that bushes are trimmed, and that there is no debris or piles of stuff outside of the home.
If the landscaping needs some improvement, it is worth the investment. Go as far as changing the numbers on the house to something new and modern looking.
Everything you do to make the outside of the house more attractive increases its value.
Take a hard look at your garage door. Many people see a dingy garage door as a sign that the house is not kept well. Remember, the renter or potential buyer will spend the first 30 seconds judging the outside appearance upon their arrival.
You need to make sure that the house looks like something that someone wants to enter.
Power wash the exterior of the house on a regular basis and paint it when necessary. Make sure that the gutters are clean and attached correctly. It is amazing what little things like these can do to the appearance of the home and its overall value.
4) Doorknobs, Light Switches and Plugs
Go through the house and change the doorknobs, light switches, and plugs to modern fixtures. Plugs get worn over time, and new plugs even include adaptors for charge cords, making it a great selling factor to renters or buyers.
New switches, especially rocker switches, are seen as high-end fixtures. Doorknobs get worn over time and often do not match throughout the house. Change them all to match for more interior appeal.
Change the plate covers for these fixtures as well so that there is a uniform appearance throughout the house. All of these little things add up to a large increase in the value of your property.
Changing things like switch plates makes the property look well cared for, and it is a very inexpensive way to increase the value.
5) Tile or Wood Is the Flooring of Choice
Another easy way to improve the value of the property is to remove the carpeting and put down tile or wood flooring. There are many benefits to changing the flooring in this way.
First, carpeting gets dirty and worn very easily. You may have to change the carpeting with each renter, and that is expensive. Second, many people have allergies and asthma.
Offering them tile or wood flooring is a great selling point and can help you charge more for rent.
Finally, wood or tile flooring just looks great. You will be able to keep these floors looking great for a longer time, and it will increase the value of your property.
6) Fresh Paint Does a Lot of Good
A fresh coat of paint is a great way to improve the appearance of any room. Make sure that you don’t forget to paint the ceilings. It will be noticeable if you do not.
While you are up painting the ceilings, check the ceiling vents. If they look like they need a good cleaning, now is the time to replace them instead.
Make sure that your paint is even and crisp, and don’t go for too powerful a color for any room. Neutral tones allow potential renters or buyers to imagine themselves in the room.
A strong color triggers the – “oh my, we have to paint this first thing” response and can cause you to lose value or the deal.
If your baseboards or door trim is too marked up or has chips or gouges in them, consider replacing these instead of painting over them. While painting over them may keep these imperfections unnoticeable, a person will notice new baseboards and trim
What they do notice can have an impact on the value of the property.
Make sure to paint your front door. The front door is the first thing they will see when they are about to enter the house. Make sure it looks great, has new fixtures on it, and you may even want to add a welcome mat to add to the overall charm.
People will notice these small things.
7) Modern Perks are a Great Touch
If you are really looking to increase the value of the home for renting or selling purposes, start upgrading to smart appliances. Make your home a modern marvel.
Add a smart thermostat, smart switches and plugs to the house, a smart irrigation system for the landscaping, and a smart switch for the front door light.
There are many smart devices that you can incorporate into a home that are not that expensive but will generate great returns in terms of charging more rent or selling the property at a higher value.
My Final Thoughts on How to Renovate a Rental Property to Add Value
The best way to increase the value of a rental property is to maintain it as you would in your own home. If the paint looks dull, give it a refresh. When the yard looks a mess, bring in a landscape crew.
Does the roof look like it is full of blue algae or missing shingles? Have it cleaned or replaced.
Maintaining and improving your rental property in a way that you would do for your own home is the best guideline for increasing the amount of rent that you could charge a tenant, and making it more valuable at the same time.
I would love to hear your thoughts or experiences on How to Renovate a Rental Property to Add Value, so please add them to the comments section below.
Thank you very much and have a great day. 🙂