When you hold property as a rental investment, it’s only natural to want the value of your investment to increase. While the real estate market plays a role in the value of your properties, you can take matters into your own hands with home improvements that add value.
Five great ways to boost the valuation of your rental property and how to make these improvements.
- Replace old bathroom fixtures. Bathroom upgrades deliver immediate impact and value. Replace outdated sinks and toilets with low-flow models that feature new hardware. You’ll save on water bills and instantly improve your apartment’s valuation. When replacing bathroom fixtures, hire a professional plumber to do the work.
- Renew kitchen countertops. Even a minor kitchen upgrade will retain roughly 80 percent of its value five to 10 years down the road, which is great news for property owners who want to make money now and sell for a profit in a few years. Replacing cheap laminate countertops with wood, granite, cement or engineered stone is a great place to start when renovating an old kitchen. Hire a countertop installer for this task.
- Dump old carpet and linoleum for high-end flooring. If your rentals have linoleum and wall-to-wall carpeting, this screams cheap and ugly to renters looking for a new home. Increase your apartment’s appeal and valuation by upgrading your flooring. Natural materials like wood or stone are favorites. These materials are durable, easy to clean and hold their value once installed.
- Update lighting and appliances. Adding new fixtures and appliances can brighten the apartment, increase energy efficiency and give an old unit new life. If you have pre-1990 lighting, replace it to slash energy expenses and make the apartment look more modern. Always have lighting installed by a licensed electrician.
If you have old appliances — anything from a dishwasher to a hot water heater — swapping them for sleek, stainless steel, energy-efficient models will boost your return on investment and slash your overhead. Order new appliances during seasonal sales to get the lowest price. Many stores take away your old appliance for free when they install the new ones for you, reducing your overhead.
- Increase storage. Storage is a top priority for renters. Whether you add a basement storage cubby, place a shed in the backyard, add open shelving in the bathroom, or put hooks by the front door, you’ll help renters make the most of the space. You can keep things cheap and easy by using hooks and shelves you can hang yourself, or hire someone for more sophisticated storage upgrades.
Tips for Property Owners Who Want to Improve Rental Investment Value
Plan smartly by making home improvements in between tenants. Time your repairs so the unit’s ready when demand peaks in your area. This way, you can rent out the renovated unit quickly and command a competitive price. In turn, immediately starting to recoup the money spent on repairs through the higher rental property valuation and new market-rate rent.
Whether you’re purchasing flooring by the square foot or shopping for coat hooks, the savings add up when you join American Apartment Owners Association.
Member perks include discounts at home improvement stores and paint stores, plus a directory of licensed home improvement professionals.
The information provided herein is for advisory purposes only and AAOA takes no responsibility for its accuracy. AAOA recommends you consult with an attorney familiar with current federal, state and local laws.