As a real estate investor or a property manager with rental properties under your care, you realize that staying competitive in a market where new construction properties are always available can be challenging.
You also know that renovating your rental property is one way to help keep it competitive and increase its value. But, with any renovation comes a certain degree of risk. For example, will your investment in improvements result in an increased rental rate that covers the cost of the upgrades and then some?
Here is a list of rental property improvements that have proven, time and time again, to increase value.
1) Updated Kitchens
Updating kitchens are always a solid investment when renovating rental properties. Adding mid-range to luxury appliances, countertops, fixtures, and lighting can increase marketability.
2) Bathroom Upgrades
Aesthetics are as crucial in bathrooms as in kitchens. Renovating bathrooms to include updated fixtures, tiling, vanities, and lighting will give your property a more luxurious feel and help increase its value. Other luxury features such as walk-in showers, rain showerheads, and low-flow toilets are sought-after by tenants and can help you command a higher rental rate.
3) New Flooring
Replacing old or outdated flooring is an excellent way to increase the value of a rental property. These days, there are several flooring options available from which to choose, including carpeting, hardwood, laminate, and tile. You can also find many eco-friendly options that appeal to renters looking for sustainable housing options.
4) Fresh Paint
A fresh coat of paint is one of the simplest and most cost-effective ways to boost value. For marketability and aesthetic reasons, stick to neutral colors like white, off-white, or beige, as other colors may turn off potential renters. Find the best exterior paint colors that increase the value of a house here
5) Energy-Efficient Improvements
With such a focus on sustainability these days, anything you can do to make your rental property more energy-efficient will go a long way in increasing its value. Replacing old windows with energy-efficient ones, adding insulation, or adding EV charging stations to accommodate potential community members who own electric vehicles are all excellent ways to make your property more valuable.
6) Add On-Site Amenities
On-site amenities are a great way to increase the value of your rental property and make it more attractive to potential renters. If you have the space, consider adding lifestyle features that enrich, enhance, and streamline community members’ lives. For instance, adding a coworking space, community center, fitness center, dog park, or playground are all amenities that can add value and help your property stand out from the competition.
7) Package Lockers
While no one likes to think of neighbors as potential porch pirates, the unfortunate fact is that package theft is a genuine problem. Adding package lockers to your rental property is a functional upgrade that helps to keep items safe until the recipient can pick them up at their leisure.
The takeaway is there are many ways to increase the value of your rental property through renovations and upgrades, both small and large.
This article was brought to you by Henderson Investment Group, a real estate agency helping investors find rental properties in North Carolina and South Carolina.