If you own a rental property, you know that one of the most difficult challenges that every rental property investor needs to face is to get their rental home occupied. When a property is vacant, it doesn’t generate income but the owner still needs to pay for its expenses. That is why attracting potential tenants is a crucial factor that can affect your profitability as a landlord.

But how do you really attract quality tenants? As a rental property owner, you need to make your rental home look appealing. This is the reason why it’s recommended to set aside a reasonable budget for renovations and home improvement. However, if you don’t know which renovations can add value to your property, you’ll only end up wasting your time and money.

In this post, we will discuss the six important renovations that every landlord needs to consider adding value to your rental home. By performing these six essential home improvements, you can get the most out of your investment and maximize your profitability.

1. Kitchen

Updating anything to do with the kitchen has been proven to provide a great return on investment. Most tenants these days prefer a more modern kitchen look, which means that properties that were built several years ago need a kitchen upgrade. If you want to get ahead of the game, updating the kitchen and the appliances should be one of your top priorities.

Here are a few suggestions on how to modernize your kitchen:

Appliances

  • Most old rental homes have kitchens with mismatched appliances, which can be a big eyesore. Set a budget for new but inexpensive appliances to make your kitchen look up-to-date.
  • Stick to basic kitchen appliances that are often used by homeowners, including refrigerator, microwave, and dishwasher. Don’t spend too much on unnecessary appliances, especially if you are tight on budget.

Cabinets

  • If the existing cabinets are still useful and sturdy, you won’t need to spend money on a new one. You can repaint the old one to make it look like new.
  • Install under-cabinet lighting to make the cabinets more functional and aesthetic at the same time

Countertops

  • Investing in new countertops is a great idea, especially if the old one is already overused. A granite countertop will definitely give the kitchen a newly renovated appearance.
  • If you cannot afford a granite countertop, make sure to choose a durable material to withstand scratches and other forms of wear and tear
  • Install task lighting fixtures to make them more functional

Other Upgrades

  • Assess your kitchen to find other necessary upgrades. For example, you can replace the faucet if the existing one is too old.
  • You can also add a backsplash that is easy to clean to complete the modernized look

2. Bathroom

Next to the kitchen, the bathroom is also an important room that you should tend to. Old and unsightly bathrooms can be a deal-breaker, so you want to pay attention to improving their looks as well as their functionality. The easiest way to improve a bathroom is to update the toilet seat or the entire toilet to give it a “brand-new” feel.

Of course, if you have the budget, you could perform more renovations that are necessary, including:

  • Walk-in shower: Converting the bathtub into a walk-in shower is a more practical option. It also saves a lot of space in the bathroom.
  • Shelves: Shelves are functional and many tenants would prefer some space for their towels and toiletries.
  • Vanity: A newly painted vanity with a new mirror is also a great addition to your bathroom. It gives tenants a more welcoming feel.
  • Lighting fixtures: Make sure to install pendant lighting near the vanity to make your bathroom look brighter.

3. Curb Appeal

If you want to create a first impression that lasts, then updating the curb appeal is recommended. You can landscape the exterior of the property, but make sure to keep it simple and low maintenance. Some tenants may not want to be bothered by having to tend to the lawn.

You can also make the exterior of your property look more appealing by adding a fresh coat of paint to the exterior walls. Moreover, installing some outdoor lighting will help make your property safer during the night.

4. Floors

Installing new floors is also a great way to add value to your rental home. Carpeted floors are so out of date, and many tenants do not like carpets anymore because they are generally difficult to clean and maintain.

The best flooring material is hardwood because it is durable and easy to clean. However, if you don’t have a budget for hardwood floors, you may also opt for less expensive materials such as luxury vinyl.

Keep in mind to install the flooring material last when renovating your home. Since other renovation projects may cause a lot of dirt and dust, installing the floor last will keep it in its best condition.

5. Bedrooms

For bedrooms, make sure to install mood lighting fixtures with a level of brightness that can be adjusted. Warm lights are ideal for bedrooms. Also, you can repaint the bedroom with neutral colors. Updating the furniture, such as the bed and closet, is also a good idea. Just make sure to not go overboard with your expenses.

6. Living Area

An open space is usually the best option for rental homes. This allows tenants to visualize what they can add to make the property feel more homey. An open floor plan also makes the property look bigger and brighter, which is one of the criteria many tenants are looking for.

If creating an open floor plan is too expensive and time-consuming, you may make the living area brighter by upgrading the lighting fixtures and adding a fresh coat of paint to the walls.

Bottom Line

Home improvements are necessary if you want to attract tenants and keep your property occupied. Performing renovations can also add value to your property. Make sure to set a budget and stick to it so you won’t be spending more than you can charge for.

If you’re still unsure of where to start, Alliance Property Management can help! Contact us today to figure out how we can help you get the most out of your rental property.