Top 6 Rental Renovations to Increase ROI

When you’re a Landlord, finding and retaining great quality tenants can be anything but easy. Luckily, you may be able to overcome that challenge by investing in the right property renovations.

The right renovations will ensure your property is attractive, which will keep your vacancies low and retention rates high.

In this article (and in no particular order), we’re going over the best renovations for your rental property for an optimal ROI.

1. Renovate the Kitchen

Do you see a lot of damage and wear and tear in the kitchen? If so, that could be the reason behind the high vacancy rates you may be experiencing.

Your kitchen’s look can have a significant impact on whether a tenant stays or leaves. After all, the kitchen is the heart of a home.

When thinking of updating it, your ultimate goal should be to make it functional and practical. Look at the appliances. Are they still working in peak condition? Or, are they outdated and energy inefficient? If the latter, it’d be in your best interest to swap them for energy efficient options that are working perfectly.

How about the kitchen’s décor? Don’t ignore it. Savvy tenants will want to rent a home that looks contemporary and stylish. When it comes to the countertop, for instance, choose stone or granite.

2. Renovate the Bathroom

This is another room that you should not forget about.

For one, a savvy tenant will want a rental that has a spacious bathroom. But even if it’s small, you can do improvements to make it look larger.

For instance, install a large mirror, increase natural light, and decrease dividing lines and color contrasts.

Savvy tenants also expect bathrooms to have certain fittings, such as bathroom cabinets, mirrors, a towel ring, and a toilet roll holder. Be sure your bathroom has all of this, and be sure that none of it is in bad condition.

3. Apply a Fresh Coat of Paint

A coat of paint can do wonders to any space. And best of all, it’s an easy and relative inexpensive project. Matter of fact, it’s one that can be DIYed as long as you know what you’re doing.

When selecting colors, make sure to choose neutral ones, such as gray, beige, and white in order to give a tenant a blank canvas to work with.

Or better yet, consider allowing your tenants to paint the space in their favorite colors. This can be a great tactic to not only attract, but also retain a great tenant.

If you choose to do so, however, make sure to protect yourself by drafting an addendum. In the addendum, you may want to require the tenant to, among other things: 

• Pay a deposit

• Only have the paint job done by a professional

• Revert to the original paint color at the end of the lease

4. Install New Floors

To keep maintenance costs low in the future, consider installing luxury vinyl plank (LVP) flooring. These types of floors are not only easier to maintain, but they’re extremely durable also make a home look contemporary.

5. Reinvigorate the Home’s Curb Appeal

The property’s exterior is what a prospective tenant will come across first. If it looks boring and uncared for, a prospect will be uninspired to come in. On the other hand, if it creates a good impression, a prospect will be encouraged to step inside.

If your rental’s curb appeal looks a bit boring, here are some of the things you might want to do to invigorate it: 

• Manicure the yard

• Refresh any hardware on the door

• Refresh graveled areas

• Clear any cracks between paving blocks

• Clean your gutters

• Add some fresh greenery and flowers

6. Brighten it up

Make your rental look lively, larger, and more beautiful by investing in proper lighting. Swap out yellow bulbs with bright white in all common areas.

At the end of the day, you want to spend money on areas that give you the biggest bang for your buck. If you want to maximize your ROI, these 6 areas are a great place to start.