Keeping your rental properties up-to-date is crucial for several reasons. For instance, periodic upgrades can quickly attract prospective renters, increase the property’s overall value, and allow landlords to charge higher rental rates. However, knowing which upgrades to focus on is crucial. Today, we’ll go over some of the top reasons to update your property, upgrades that add value, and tips for choosing cost-effective upgrades.
Contents of This Article:
- Why Upgrade Your Rental Property?
- Rental Property Upgrades That Add Value
- Tips for Choosing Cost-Effective Upgrades
- Manage Your Investment With BMG
Why Upgrade Your Rental Property?
Making periodic upgrades to your rental is beneficial for several reasons. Not only can you increase the value of your property, but you also give yourself an opportunity to increase rent. As most rental property management companies in Northern Virginia know, many renters are willing to pay more for new appliances, nice floors, updated bathrooms, and more. A few other reasons to upgrade your property include the following.
- Make Your Property Stand Out- Certain upgrades can set your property apart from others in the rental market. In a competitive market, having a well-maintained and upgraded property can attract more tenants and reduce vacancy periods.
- Higher Rental Rates- Updated and modern features can justify higher rental rates. After all, tenants typically value the convenience and aesthetics of newer appliances, fixtures, and finishes, meaning they may be willing to pay more for these amenities.
- Increase the Overall Value- Property upgrades can increase the overall value of your investment. This is great if you want to charge higher rates and if you plan on selling the property later. A property with modern amenities and a well-maintained appearance is generally more attractive to potential buyers.
- Improve Energy Efficiency- Upgrading to energy-efficient appliances or windows attracts environmentally conscious tenants and can allow you and your renters to save money on utilities. Lower utility bills can be a compelling selling point for your rental.
- Potential Tax Deductions- Some property upgrades qualify for tax deductions. For instance, some energy-efficient upgrades or improvements that enhance accessibility may be eligible for tax benefits.
7 Rental Property Upgrades That Add Value
There are several upgrades you can make to your rental property. However, it’s important to pay close attention to those that add value. The more value you add to your property, the more it’s worth and the more you can potentially charge for rent. That said, here are some of the top rental property upgrades that add value.
- Kitchen Renovations
- Bathroom Remodel
- New Flooring
- Overall Painting
- Energy-Efficient Features
- Updated Curb Appeal
- Security Enhancements
Kitchen Renovations
Upgrades to the kitchen are some of the most valuable improvements for rental properties. Most tenants look for modern and matching appliances that give the kitchen a cohesive look. So, focus on modernizing appliances, installing new countertops, and ensuring a functional layout. Additionally, you could add some inexpensive touches, like adding a backsplash or replacing the faucet that gives the kitchen a fresh, modern look.
Bathroom Remodel
Many tenants look for an up-to-date bathroom, making it an important area of your rental property to upgrade. Some of the easiest improvements you can make include replacing the toilet, adding a new showerhead, and updating the faucet and cabinet hardware. However, if you want to make some major improvements, you could install shelves for more storage or convert the bathtub into a walk-in shower.
New Flooring
Installing new flooring can transform the look and feel of a rental property. However, if you’re looking at replacing the flooring, look at durable and attractive options like hardwood, luxury vinyl tile, or quality carpeting.
Overall Painting
A fresh coat of paint can do wonders for the overall appearance of your rental property. Additionally, it’s an easy and relatively cost-effective upgrade you can make to any property. Remember to stick with neutral colors that appeal to any tenant and provide a clean, modern look.
Energy-Efficient Features
Implementing energy-efficient features can attract environmentally conscious tenants and reduce utility costs for you and your tenant. So, consider upgrading to energy-efficient appliances, installing LED lighting, and improving the insulation throughout the home. These upgrades not only add value but also contribute to long-term cost savings.
Updated Curb Appeal
First impressions are crucial for rental properties, and curb appeal is the first thing to attract potential tenants. So, if you’re looking at upgrading your rental, consider enhancing the exterior of the property by maintaining a well-landscaped lawn and ensuring the exterior is well-maintained. After all, an inviting exterior creates a positive impression from the start.
Security Enhancements
Implementing security features can enhance tenant safety and add peace of mind. If you’re thinking of making your property more secure, consider installing smart locks, security cameras, and adequate outdoor lighting. Many of these enhancements can make your property more attractive to potential renters who value safety and security.
Tips for Choosing Cost-Effective Upgrades
If you’re looking at improving your rental property, it’s important to choose upgrades carefully to ensure you’re adding value while remaining cost-effective. Additionally, you’ll want to research and understand the preferences of your target market and consider the conditions of your local real estate market.
Before deciding on any upgrades, think about the potential return on investment (ROI). In other words, think about how much the upgrade will cost versus how much it will increase the value of the property or your rental income. Ultimately, you’ll want to focus on projects with a favorable cost-benefit ratio.
Furthermore, you’ll want to identify high-impact areas that significantly enhance the property’s appeal without breaking the bank. For instance, kitchens and bathrooms are typically key areas where cost-effective upgrades can make a major difference.
Finally, if you’re looking to be as cost-effective as possible, you may want to consider doing some projects yourself instead of hiring a contractor. Some upgrades, especially cosmetic ones, can be tackled as DIY projects or repairs. However, it’s crucial to ensure a professional finish. So, if you don’t have the necessary skills to do it yourself, you’ll want to hire a professional to do it for you.
Manage Your Investment With BMG
When you own rental properties, it’s important to look at different ways to improve them over time. Luckily, there are several applicable upgrades that add value and are relatively cost-effective. That said, periodic upgrades are just one aspect of property management. There are several crucial property management tasks for landlords to keep up with regularly.
Learn how bay property management group can help today!
Whether you own one or 100 rental properties, keeping up with the day-to-day tasks can quickly become a full-time job. That’s why many busy landlords hire comprehensive rental property management to help ensure each property is well taken care of. Bay Property Management Group can help with your properties in Baltimore, Philadelphia, Northern Virginia, and Washington, DC. Contact us today to learn more about our full-service management!
