Renovating a rental property can add value and increase its rentability but it's all about smart renovation choices! You want to spend your money wisely which sometimes (let's face it, many times) means you don’t need to do a full renovation!
Keep reading as I break down the top 7 tips for renovating a rental property!
1. Establish your budget & stick to it.
Even before you buy the property, you should take into consideration the home's value vs. the cost of renovations vs. the price it can be rented at. If you're an experienced property investor, you may be able to come up with a pretty accurate renovation cost but if you're new to this, you may want to consult with a GC or handyman who may be able to provide a better estimate.
Once you close on the property, set a renovation budget and stick to it! With any type of renovations, unforeseen expenses can arise. In this case, you may want to cut the budget on repairs that may not add to the home's value or rental price.
2. Identify the main work needed to make the biggest difference.
An important question to ask yourself is: will this renovation allow you to raise the rent?
Here are the main updates we decided to make at #TheKendallRental:
- Remove popcorn ceiling and re-plaster
- Remove built-in mirrors
- Upgrade master bath and vanity
3. DIY vs. Hiring Out
There are many things to take into consideration when you're deciding if you should do the renovation yourself or hire someone to do it. One of the most important things to take into consideration is time.
You may save money by doing it yourself but it may take you longer to do than it would a contractor or a handyman. The longer it takes to complete the upgrades, the longer it is before you can rent out the space!
4. Leave room for tenants to make it their own.
Using bold prints, loud colors, or very decorative fixtures can deter a potential tenant. If it's not their style, it will be difficult for them to picture themselves and their family living in the home. Tenants can have a difficult time making a home feel like theirs if they do not have the opportunity to add their own touches into the home.
5. A fresh coat of paint.
Sometimes, all a home needs is a fresh coat of paint to brighten up the space. As mentioned above, leaving room for the tenant to make the space their own is so important, which is why we decided to paint all walls white. This left a clean canvas for the tenants to come in and create their dream space in their rental apartment.
Paint color: Sherwin Williams - Alabaster White
6. Upgrade hardware and fixtures.
At #TheKendallRental, we upgraded all light fixtures, plumbing fixtures, door knobs, kitchen cabinet pulls, and kitchen appliances.
7. A good cleaning.
At first, we spoke about replacing the flooring throughout the entire apartment. After some consideration and looking at the real estate market in the area, we decided to leave the flooring as is and invest in a very good cleaning that will make the flooring look brand new.