Increasing your return on investment (ROI for short) for your rental is important. However, most homeowners don’t realize the number of improvements they have to make before they can rent their place out. Renters like various amenities, and in order for you to get the biggest ROI, you’ll actually need to put in more to your rental property than you think. This is good, though. You’ll attract renters with higher incomes who can afford these amenities, driving up the value of your property and your neighborhood. Here are some of the most important long-term rental improvements you can make for a higher ROI on your property.
The kitchen is where you’re going to have your largest investment, but it’s also the place you’ll have the largest ROI. Many renters are younger families or professionals who like to entertain. Spending the money now to give them a kitchen worth cooking in will really drive up your rental prices.
- Avoid on-site labor costs: By purchasing RTA cabinets, you can avoid on-site labor costs or paying extra for pre-assembly. RTA stands for “ready-to-assemble.” The cabinets come to you in pieces, but with all the hardware you need. Many DIYers and landlords choose this option to keep their labor costs down. You can assemble the cabinets yourself, all with some simple tools. Visit your local hardware store for expert advice on which tools to get.
- Create an open space: This one actually applies to your dining and living rooms, too. Take stock of the walls separating your kitchen, dining room and living room. If you can, take the walls down. The open concept design style is a trendy favorite among both homebuyers and renters these days. While it can be expensive to knock down walls–especially if you have load-bearing walls to replace with beams–you will quickly find how much more you can charge for a home featuring an open concept. Renters will practically fall over themselves just to inquire about your property.
- Go for sleek: Stainless steel appliances are the name of the game in kitchens. They’re not only trendy but they’re much more durable than other kitchen appliances. They give the kitchen a sleek and modern look, something renters look for when hunting for a rental property.
Bathrooms are the second place within your rental property that need a bigger investment but will give you a higher ROI. Here are some considerations you should make for any bathrooms on your property:
- Give it a facelift: Fresh paint, new Dover white cabinets and a new mirror can really go a long way. If you want to take it a step further, install a new tub-shower combo. If you are renting a historic home, why not install a separate clawfoot tub in the master bathroom with a separate standing shower? You can charge more for your unique, historically authentic bathroom that renters will love.
- Carry the hardwood through: Instead of putting tile in the bathroom, you should carry the hardwood flooring through. It gives the bathroom a connected feel to the rest of the home, especially if you’re upgrading to an open floor plan. It is also a unique feature you can market.
A master bedroom should feel luxurious and like a getaway. Renters will love to spend time in a master bedroom with special features. Here are some improvements you can make to the master bedroom:
- Walk-in closet: Creating a walk-in closet in the master bedroom is a game-changer. With so much space for clothes, shoes and accessories, you’ll land young professionals as renters in a heartbeat. Include a variety of built-ins with soft-close drawers, track lighting and even a few tie racks to make the walk-in closet a work of art.
- Automatic blinds: Natural light is important, especially in the master bedroom. By installing automatic blinds, with the push of a button, they can be hoisted all the way up and out of the way of all that natural sunlight. Then, when it gets dark, with another push of a button, the blinds can descend to keep any nosy neighbors from looking in. They’re also less likely to break, and can keep pets and kids much safer than traditional blinds.
A great outdoor space is essential for receiving a large ROI on your rental property. With more and more families migrating to the suburbs, landlords will need to have a decent outdoor space available for families to spend time. There are lots of ways you can liven up the outdoor space.
- Stain the deck: The deck will last much longer and handle harsher weather if it’s stained. Plus, it looks great in pictures. Spruce it up with some string lights to make renters feel right at home.
- Give it curb appeal: The front of the house is just as important as the back. Renters will know from the moment they look at the front of your property whether it’s worth their time to tour it. Add some flower bushes, keep the lawn trimmed and even install some pavers or ground lights to make it look like something straight out of a magazine.
- Install a security system: Crime doesn’t discriminate. Keep the renters in your home safe with a security system. It is a great long-term investment because other renters can use it, too.
Other Things to Consider
There are lots of other things to consider when it comes to long-term rental improvements. Here are some additional considerations for you:
- Remove the carpet: If you own a detached home, consider removing the carpet and place down vinyl or hardwood. The non-carpeted feature of your property will give you a better ROI. If you are renting out a condo that has downstairs neighbors, it would be a good idea to keep the carpet as a way to reduce noise.
- Change out the lights: Lighting is a key part of a rental. Change out the lights in your property to feel more natural. Recessed lighting in the living room, a unique fixture in the dining room and track lighting in the kitchen are perfect.