Almost all investors know that enhancing your Greenfield rental properties is an important way to keep them attracting tenants. But, property improvements are also the key to adding value to your investment. When it comes to home improvements, go for the ones that can give your property significantly more value. For rental property owners, knowing which improvements offer the best return on investment is critical to your business’s long-term success and profitability.
Kitchen: Before you make any upgrades to your rental property, consider first the construction costs versus the expected gain in property value. In a recent nationwide survey, most home sellers indicated that kitchen updates offered the best return on investment (ROI) for the money spent. However, it isn’t necessary that you renovate the entire kitchen just to see property values rise. There are minor updates, such as refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet that can add so much value to your home without breaking your budget.
Bathroom: A small renovation to your property’s bathroom can lead to a significant boost to the property’s value. Consider covering old, worn tile tub and shower surrounds with a new fiberglass overlay. Install new vanity and mirror, or consider painting the room a fresh, light color. Tattered vinyl flooring can be changed to better flooring like tiles. Tile is a great choice because it has a lot of long-term benefits. One benefit of using tile is that it lasts long without needing constant replacement. The price difference is also not that far from laminate flooring.
Stone Veneers: It’s easy to fall into the trap of improving your interiors; just don’t forget about your property’s curb appeal, too! First impressions are key to a successful rental property and resell. Hence, don’t forget to show some love to your property’s exterior. If you add a stone veneer to your property’s front exterior, you’re guaranteeing yourself a return on investment. According to a 2020 report, replacing vinyl siding with stone veneer around an entryway, pillars, or lower third of your property’s front-facing exterior walls helped sellers recoup almost all of the cost of installing it. Choosing to do this upgrade before selling can make your Greenfield rental home more marketable and allow you to charge a higher monthly rent.
Doors and Windows: There are specific upgrades that offer a high return of investment, such as garage doors and windows. If your rental property has a garage, make sure you replace the door once it looks worn or damaged. Like stone veneers, garage doors offer big increases in a property’s resale value. A new garage door should be on top of your inexpensive replacements list. The same thing is true of replacing old windows with new vinyl windows. With new windows comes instant aesthetic improvements, security, and energy-efficiency. With this, old window replacement should be on top of everyone’s home improvement list because of the high return of investment it offers.
Property improvements and upgrades can be expensive and time-consuming. But they are essential to long-term rental property investing success. Improving your Greenfield rental property while managing your budget can be tricky, but rewarding, too, since it allows your property to stay competitive and rise in resale value.
Interested to build a rental property that’s appealing to both renters and buyers? Give Real Property Management Greater Milwaukee a call at 262-309-6961 to speak with a Greenfield property manager today. We can help you evaluate your property’s current condition and suggest budget-friendly ways to ensure that your property stays competitive in rental and resale markets.
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