Renovations are often costly decisions that could boost your home value or be an expensive art project. Thus, investors often find themselves wondering what the best updates are. Would it be better to make your bathroom more modern or convert your garage into an extra room? How do you figure out which upgrades deliver the best returns and which are a waste of time and funds? If you have these questions, stick around. This article reveals the top 5 rental home upgrades that offer good ROI and 3 that don’t. Let’s dive in:
Top 5 Rental Home Upgrades that Offer Good ROI
1. Modern Light Fixtures
Lightning is one of the rental home upgrades because it transforms the way you view a room. A well-lit house can make your rental significantly increase in its appeal. Thus, it would be wise to replace your outdated and dingy fixtures. Modern light fittings can make your house look more modern and attract new tenants. For the best effects, combine them with long-lasting LED bulbs. That would ensure your remodel is not only stylish but also energy-efficient.
2. Updated Flooring
Flooring is one of those upgrades we literally walk over. You’ll be surprised how laying out new floors can give your rental a more modern appeal. Most property owners choose hardwood, laminate, or tiles, which are excellent choices. However, there are some overlooked options like vinyl and corkwood you could also incorporate in your renovation. It all depends on what style you want, your desired life span, and your budget. Of course, no rule says you can’t have more than one-floor type. To cut costs, some landlords use different options for separate rooms. You can discuss these cost-effective upgrades with a qualified property manager.
3. Water-Efficient Fittings
Water-efficient fittings are now all the range because they are incredibly cheap and can help you cut back on your water bill. Since water is an essential utility landlord must provide, reducing the amount your rentals use in the kitchen and bathrooms could save you a great deal of money. Even if you’re not paying the bills, your tenants would appreciate the extra money in their pockets.
4. New Countertops
Swap your dated countertops for newer, fresher ones. Upgrading your countertops can give your kitchen a more polished and modern look. Thus, this solution could still make a significant visual impact if you don’t have the budget to change your appliances. Of course, you also want to go for more durable materials. Ideally, any material you choose for the kitchen should be water, heat, and scratch resistant. Hence, it would be best to opt for materials like granite or quartz.
5. Smart Technologies
Smart technologies are digital upgrades that make living in your house more convenient and comfortable. Thus, they’re one of the best home upgrades you can make. Besides, they’re something you can invest in irrespective of your budget. Smart blinds are usually close to the end of the spectrum and make it easy to control the amount of light entering a room. Other neat updates include smart locks, cameras, and security systems. These upgrades improve your tenants’ safety, and people are often willing to pay more.
Top 3 Upgrades that Don’t Add Value
1. Garage Conversions
Garage conversions are one of the top rental property upgrades to avoid. A quick Google search on the topic will expose the many alternative ways you can use your garage. From an extra bedroom to a games room or in-house gym, the only limit is your creativity. However, while these remodels can boost your property’s desirability, it’s often a lower trade-off. In other words, most tenants would prefer to keep that extra parking to whatever creative alternative you have in mind. Thus, it would be best to save yourself the stress and money of renovating that space.
2. Solar Panels
Despite highlighting the benefit of LED lights earlier, greater efficiency has limits. Thus, installing solar panels won’t add much value to your home unless you’re enthusiastic about limiting your carbon footprint. Although this feature can help you cut back on monthly electric bills, they take a long time to pay off. And by then, newer models are on the market, making your installation outdated. As a result, solar panels aren’t the best use of your remodeling budget for a rental property. However, you might reconsider if you plan to sell it off soon.
3. Basement and Attic Remodels
If you’re considering sprucing up your attic and basement, you might want to give it a second thought. While these corners are often the most overlooked parts of the house, clearing out the cobwebs might give you the significant boost you desire. Since these spaces are usually restricted to storage, it doesn’t make a difference whether they have the best lighting fixtures or not. A refurbished basement could be worth it for larger families, but most tenants wouldn’t be willing to pay extra for the finishing. Renovated attics offer even lower returns, and few real estate experts recommend a remodel.
Conclusion
Success in real estate often hinges on making the right decisions. These choices usually revolve around where to invest, which tenant to select, and what upgrades to make. Knowing the top 5 rental home upgrades that offer good ROI can help you make better decisions and save more money. In addition, knowing which upgrades to avoid should help you navigate your next renovation project.
Still, if you need help choosing the best updates or attracting high-quality tenants, contact a professional. An expert property management company can help you maximize your ROI and steer clear of money pit projects.
