Maybe you’ve just upgraded your home with the works: granite countertops, wide-plank wood flooring and the best appliances money can buy. When was the last time you upgraded your luxury rental property? The proper renovations will not only increase the property’s value but will also increase your renters’ satisfaction with living there. Renovating a rental property has many similarities to renovating your own home—and some differences, too. Make rental renovation decisions the smart way with this comprehensive list.
There are many upgrades to consider, but focusing on the kitchen, master bathroom and garage first will keep (or attract) great tenants and instantly raise the value of your property.
- Kitchen. Kitchen space is a vital component in whether or not a home has true luxury value. According to Forbes, if you were to spend $113,000 remodeling a 200-square-foot kitchen, you would eventually net a return of 60 percent. Why not go a little wild in here and wow your potential tenants with a touchscreen countertop?
- Master Bathroom. Upgrade the master bathroom with the latest technologies ranging from state-of-the-art showers to heated tiles. Consider adding multi-head shower systems to enhance their shower experience. Upgrading the tub in your rental’s master bedroom is also sure to add value to your property and make your tenants happy; because nothing beats a long day like soaking in a luxurious bathtub.
- Garage. Often overlooked by some property owners during renovations is the garage—or lack there of. Adding on a garage is a quick way to raise the value of your property, according to HouseLogic. And it’s sure to make your tenant happy as it adds tons of storage and gives them a no-hassle parking space.
Some upgrades may prove to be less than worthwhile. Two we think you should skip:
- Pool. You might enjoy having parties at your own pool, so you would think upgrading the pool at your rental property is a no-brainer. But completely upgrading your rental property’s pool may be costly and frankly, a waste of time. Having a pool already adds value to your property and renovating it will do little to raise it any further. You may be attracting more tenants with a backyard oasis, but they probably won’t pay much more in rent for it.
- Roof. Unless your roof is in such bad shape that your renters have to place pots and pans all over the house during a rain storm, Homesessive.com suggests you avoid upgrading your rental property’s roof at first. Chances are the roof you have is already in good enough shape to ensure that your tenants won’t be literally counting stars as they try to fall asleep.
Upgrading Is an Investment
Upgrading your rental property is an investment in your future. If you’re short on cash, there are still many ways to make your renovations a reality. Obtain financing through a bank or consider taking out a home equity loan. If you receive regular payments from an annuity, you may be able to sell all or a portion of your future payments to a company like J.G. Wentworth for a lump sum of cash now. Or, hold a large multi-family yard sale at your rental property to raise the funds.