When it comes to maintaining your rentals in northern Virginia, upgrades and renovations can make a huge difference when it comes to rentability, pricing, and the overall attractiveness for potential residents. With that being said, doing a little research before you dive head first into renovations can ensure that you’re making the right moves to boost your return on investment (ROI). The last thing you want is to shell out cash on certain upgrades that aren’t going to pay off in the future.
It’s important to note the difference between making renovations to a personal home and making renovations to a rental home. One increases your own lifestyle, the other is purely a real estate investment set to keep your cash flow steady. Renovations come in all shapes and sizes, so it’s important to know which ones are best for your rental property.
We can help with that - we’ve put together five great, cost-effective renovations that you can do to your rental property that will set you above the rest, both aesthetically and financially. But first, let’s talk about why you should consider renovating your rental.
Rental Long-Term Value
When you own a rental home, you want to be thinking long-term. As you gain equity in the home and accumulate profits over time, you want to set yourself up for success in the future by making the right decisions now.
Certain renovations help you set yourself up well. Long-term investments equals long-term profits, and these updates can help you achieve that goal.
Monthly Rental Income
A little extra profit never hurt anybody, right? Absolutely. When you make renovations to your rental home, you are going to see benefits on your bottom line pretty quickly simply by monthly rental price alone.
In the midst of a very competitive market, you want your home to stand apart from the rest. You want your rental property to be more than just “livable,” but a place where people will build memories and their lives as well.
When your rental home is attractive and inviting, you won’t have a problem finding a resident. More than that, good reviews and happy renters will lead to greater profits in the future.
So, what are the best renovations for your money? Here are our top five.
1. Freshen Up the Paint - Inside and Out
Paint (in general and specific colors) makes a huge difference when it comes to the attractiveness and overall aesthetic of your home. Paint that is clearly outdated will do more harm than good when it comes to potentially interested renters. On the other hand, fresh paint on the inside and outside of the house will go above and beyond to stand out to any potential residents.
Interior painting is a pretty cheap option that goes a long way. Exterior paint gets a little more pricey, but will last and add to the long-term value of the home.
2. Replace Light Fixtures
Whether you need to add more lighting to the home or just replace outdated light fixtures, do it sooner rather than later. Bad lighting is a major turn off to potential renters, but good exterior and interior lighting will make your home competitive in the market.
3. Replace Knobs, Handles, and Faucets
This is a really easy, really affordable DIY project that you can finish in a couple of hours. Replacing cabinet handles and doorknobs in the kitchen will go a long way in giving it a nice facelift.
Replacing old (or just outdated) faucets in the bathrooms can also make a difference in the overall feel of the home. Just think - renters spend every single day either in the kitchen or in the bathroom. It makes sense to make a couple of quick renovations to these areas to attract renters and increase your value!
4. Go for Curb Appeal
You know what they say - first impressions either make you or break you. In the case of rental homes, it’s especially true. Curb appeal isn’t only important when selling a home, it’s important to renters as well.
This is another relatively easy, cheap upgrade you can make depending on what all you want to do. Take care of the lawn, add some new landscaping, clean up any clutter, and consider the perspective of potential renters when looking from the inside in.
5. Replace Windows and/or Flooring
This can be a bigger, more in-depth expense when it comes to renovating your rental home, but the return on your investment will pay dividends with future renters. Not only will they increase the value of the home and therefore increase your monthly rent, but they also are a huge improvement aesthetically.
Windows bring a ton of long-term energy savings while hardwood floors have proved that they are highly coveted and here to stay. Go all-in on these renovations and your rental property will be set up well for years to go.
There you go! Making the right renovations to your rental home can help you increase your profits and make your property a contender in an extremely competitive market.