Rental properties need updates after a while to maintain their appeal and value. Old fixtures and worn-out interiors can massively slash down your rental income.
It’s imperative to select the right time to update them. Replacing carpets, repainting walls, and updating appliances every few years is a sound start. That being said, extensive upgrades like with granite countertops or hardwood flooring might not be worth the cost. Carefully considering the favorable and unfavorable factors, the pros and cons, can make the decision much more manageable.
The Pros
Upgrading rental properties can obviously make them more attractive to potential tenants. When renting a home, tenants often seek out properties that grant features and amenities that align with their desired lifestyle. To attract potential renters, touching up your rental property with modern kitchen appliances, bathroom fixtures, and other fine features may be necessary.
After renovating your rental properties, you can certainly expect to increase the rent on a newly refurbished rental home, according to your market. Quality upgrades can attract potential residents eager to pay more for a better living experience. These residents are furthermore highly likely to take better care of the property, which can intensify the long-term profitability of your rental properties.
Similarly, selecting quality materials for upgrades can add enormous value to your rental properties and stretch their lifespan. With long-lasting value and return on your investment, properly using higher-quality materials is an excellent choice for rental property owners.
The Cons
When planning to upgrade your rental property, making absolutely certain that the upgrades add value is crucial. Overspending on upgrades can bring about a more extortionate cost that might not be recoverable. Upgrades call for an initial cash investment, so check out your budget and ensure you have sufficient cash flow to cover the cost of home improvements while waiting for the consequent return is critical.
Before you choose to upgrade your rental property, you must take into account the possible negative effect of overpricing it. One way to avoid losing out on potential tenants is to investigate comparable properties in your area and comprehend whether your reconditioned property’s price point is acceptable. This will help safeguard that you’re offering a fair price and staying competitive in the market.
It is also integral to realize that not all upgrades will increase the value or demand for your property. You should take the time to be aware of which upgrades are valuable 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 skeptical about whether your rental homes are getting enough attention from potential residents, think about remodeling them to keep up with the competition. If your rental properties have an outdated design and feel that may not be inviting to many renters, having a plan to renovate and modernize the homes can be a smart approach.
You can easily enhance your rental properties’ overall appearance and functionality by implementing upgrades such as with new appliances, updated flooring, fresh paint, and modern fixtures. These upgrades will endow your rental homes a fresh look and make them naturally more appealing to renters.
Contact us today for more timely information on how to optimize and maximize returns on your real estate investments in Broken Arrow and the surrounding area. Real Property Management Tulsa can offer competent and much-needed guidance on management and real estate investment matters. Call us at 918-532-7020.
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