As a landlord, you want to maximize profit on your rental units without maximizing costs. One key way to do this is to understand how to remodel units in ways that increase the property value and provide the most return on investment.
To help you determine how to do that, here are four areas you should focus on during a renovation to boost the value of a rental home.
1. Update the Bath and Kitchen
For most families, the kitchen and bathroom are two of the biggest selling factors. Old kitchen appliances and bathrooms that look dirty will turn off potential tenants. If you can’t remodel the entire unit, then these two rooms are the best places to invest your money in order to attract quality renters.
When modernizing these rooms, look for matching fixtures and appliances that will hold up over time. Open up the layout of the rooms or add windows to create more natural light and therefore make rooms appear larger. If you want to attract families, then think about ways to make the rooms work for multiple people, such as adding double bathroom sinks or widening the kitchen to allow for more traffic.
2. Add Curb Appeal
Your rental property makes its first impression as potential tenants approach. Look at the exterior with an objective eye to see where you can make it more appealing. Does the siding need to be replaced? Are windows updated and energy efficient? Is the front entrance wide, open, and inviting?
Sometimes, simple changes can increase curb appeal. For example, you could replace older exterior hardware for newer, matching sets. You could also cover flowerbeds with fresh mulch and add a new coat of paint to the exterior.
Another simple change might be replacing an aging or broken garage door with a new, bold one. Alternatively, you could add windows to the front of the home to bring in more natural lighting and make the house appear warmer.
In addition, not every update has to be obvious or even visible to increase the curb appeal, for example, adding a sprinkler system will help keep the lawn green and appeal to busy renters.
3. Don’t Get Too Attached
Many new landlords start thinking of the rental unit as a home rather than as an investment house. When planning renovations, don’t focus on creating the home you would wish to have or including the very best of materials. Instead, keep your eye on adding value even if it’s not how you would organize your own home.
How can you do this? Invest your money into the areas where it’s most needed instead of where you may want to invest it. Rather than adding gourmet appliances in the kitchen, for instance, use the money for better flooring materials that won’t wear out even with constant traffic.
In addition, you may find that splitting one large bathroom into two smaller ones is beneficial, especially if the house is lacking. Also before you assume you should replace something, first look into repairing it.
4. Make the Home Accessible
With more and more baby boomers looking for housing options, increasing the accessibility of your rental is a good way to increase your pool of potential renters and your profit. In addition, in most houses, installing accessible features doesn’t require large changes.
While planning a renovation, take the opportunity to widen doorways and corridors to comfortably fit wheelchairs and mobility devices. Even installing a pedestal sink instead of a boxy vanity can make bathrooms more accessible.
For specific ways to maximize the remodeling results of your Austin area rental unit, contact our experienced team at Contract Remodeling Services today. Our construction experts can help you find the right, budget-friendly changes for any house or apartment. Give us a call today to learn more.