In this industry, we see it all the time: rental increase due to renovations. Throughout the years, we have been able to increase value and desirability of rental property through upgrades and renovations. Not every property needs to be gutted and start from scratch, but from our experience the return of investment has been graciously profitable. Where there is value there is desire and where there is desire there are limitless options for growth.
Knowing your market value, depending on location, nearby comps, and current supply and demand will help you determine a realistic budget for renovations in order to receive the highest and best return.
Creating light and bright spaces not only aesthetically enlarge a space but it allows for a more visually pleasing layout for furniture placement, style and function for the potential resident.
A property will attract the resident who it reflects. A pristine property will attract a pristine resident. The cleaner and better maintained a property is, the greater amount of rent one will pay and the longer the resident will stay.
Tenants do not necessarily focus on bells and whistles when it comes to renovating. What they do care about and will pay a premium for is knowing that what's in the house is new, and won't cause issues immediately upon move-in. If your budget is limited consider updating the appliances. A new refrigerator, washer and dryer, dishwasher, microwave, stove/oven is attractive for any potential renter.
Consider including outdoor landscaping in your renovation. Outdoor living space is appreciated by homeowners and renters alike, and while it is a great place to relax it can be also be used as additional entertaining. Something as little as clearing out shrubbery and laying new pine straw in order to create usable space for residents to enjoy the outdoors.
These tips may seem pretty straight forward and simple, but the truth is knowledge is power. It's important to know what actions could not only produce the highest possible income, but reliable income. We've seen this first hand in the last number of years with a number of rental properties managed by Berry.
Author: Nicole Cosentino