Rental properties require updates as time goes by to maintain their appeal and value. Old fixtures and worn-out interiors can severely bring down rental income.
It’s crucial to determine the right time to update them. Replacing carpets, repainting walls, and updating appliances every few years is a good first step. Even so, extensive upgrades for instance granite countertops or hardwood flooring might not be worth the cost. Looking into the positive and negative aspects, the pros and cons, can make the decision much more manageable.
The Pros
Upgrading rental properties can definitely make them more attractive to potential tenants. When renting a home, tenants often seek out properties that provide features and amenities that align with their developed lifestyle. To attract potential renters, refurbishing your rental property with modern kitchen appliances, bathroom fixtures, and other favorable features may be necessary.
After renovating your rental properties, you can suitably expect to increase the rent on a rehabilitated rental home, depending on your market. Quality upgrades can attract potential residents keenly willing to pay more for a better living experience. These residents are particularly more inclined to take better care of the property, which can boost the long-term profitability of your rental properties.
Secondly, putting into use quality materials for upgrades can add massive value to your rental properties and magnify their lifespan. With long-lasting value and return on your investment, using higher-quality materials is a very good option for rental property owners.
The Cons
When planning to upgrade your rental property, checking that the upgrades add value is primal. Overspending on upgrades can certainly lead to a more uneconomical cost that might not be recoverable. Upgrades require an initial cash investment, so monitoring your budget and making sure you have plenty of cash flow to cover the cost of home improvements while waiting for the forthcoming return is vital.
Before you determine to upgrade your rental property, you must think about the imminent negative aspect of overpricing it. One way to avoid losing out on potential tenants is to look into comparable properties in your area and determine whether your refurbished property’s price point is appropriate. This will help check that you’re offering a fair price and staying competitive in the market.
It is also critical to ascertain that not all upgrades will increase the value or demand for your property. You should take the time to understand which upgrades are significantly important and which ones are not. This will help you avoid costly upgrades that do not add value to your rental property.
Deciding on Property Renovation
If you’re feeling conflicted in terms of whether your rental homes are getting enough attention from potential residents, think of sprucing them up to keep up with the competition. If your rental properties have an out-of-style design and feel that may not charm most renters, forming a plan to renovate and modernize the homes can be a positive approach.
You can enhance your rental properties’ overall appearance and functionality by implementing upgrades for instance new appliances, updated flooring, fresh paint, and modern fixtures. These upgrades will render your rental homes a fresh look and make them more appealing to renters.
Contact us today for more information on effectively optimizing and maximizing returns on your real estate investments in East Lyme and the surrounding area. Real Property Management Hartford Metro/Greater New London can offer helpful advice on management and real estate investment matters. Call us at 860-316-4388.
Originally Published on August 31, 2018
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