Being a landlord means striking a balance between keeping your costs down and maximizing your return on investment. Renovations, in particular, can be a tricky issue.
“The question is, when do you do the minimum, and when do you go for a full scale renovation? “
You can use renovations to maximize your rental income, and you don’t have to pour every penny you have into your rental unit to do so.
Read on to learn how you can maximize rental income through renovation.
Remember that this rental property is not your home.
It is easy to get caught up in your vision of the place and choose renovations based on what you would want. You need to take a more objective, impersonal view of the situation.
You are not going to live there, and your tenants probably won’t care for it the way that you would. Don’t over-renovate, either. If you renovate a unit to look like your dream home, you may not ever be able to recover the funds that you have put into that project.
Check out other units in the neighborhood, and see what kind of finishes they have. Try to choose similar finishes. Overdoing it won’t pay off.
Help tenants to see themselves living there.
This means showing the property in the best possible light. This sounds obvious, but clean it. When you show a unit, it should be as clean as it can possibly be.
Open all the curtains and blinds to let in all the natural light. If the space is still a bit dark, consider painting the walls a lighter color or bringing in more light fixtures.
If the space is small, consider taking a wall out to create an open concept. This will make the space fill bigger and appeal to a wide range of tenants. Don’t underestimate the value of staging.
“When a space is empty, prospective tenants will see all the flaws.“
When it has been staged and decorated, tenants will be able to imagine living there and using the space. You can rent furniture by the day, week, or month for reasonable costs.
Consider making repairs before you replace things.
When you purchase an investment property, it is tempting to go in and rip everything out and replace it with all new stuff. That may be doing more than necessary, and it will definitely be costly.
Most items can be repaired or cleaned, and you can get a few more years out of them. Before you rip out dirty carpets, bring in a professional cleaner.
You may be surprised at what great results you can get from a professional carpet cleaning, and it costs a fraction of the price of replacing the carpets.
As a general rule, carpets should be replaced every 7 years. If you clean them regularly, though, they may last longer.
Focus your renovations on kitchens and bathrooms.
You will get the highest return on investment for your renovation dollars if you focus your efforts on the kitchen and bathrooms. If you have a limited budget, dedicate it to these two areas.
Clean thoroughly.
Every time you change tenants, you should hire a cleaning service to thoroughly clean the space. This is also a good time to paint the walls and clean the carpets. This minor investment of time and money will make a big difference to prospective tenants.
By doing so, you will attract the most desirable tenants and will be able to charge the maximum rent. To learn how we can help you manage your rental, get in touch with McMath Realty.
We offer a variety of services to assist you in maintaining your property, includinginvestment consulting,property management,rental management,property inspections, and home maintenance services.
We manage rental properties in Chandler, Mesa, Gilbert, Scottsdale, Phoenix, Glendale, and all areas of Maricopa County.
We advertise your property in the MLS listing, on multiple websites, and on our own website. We also use signage to attract potential renters who are out driving around and looking for rental opportunities. We will assess your property, recommend improvements, and help you price your unit appropriately.
Contact McMath Realty at https://mcmathrealty.com//contact.php to learn more about how we can help you keep your rental property in great shape and take care of the day-to-day dealings with tenants!