Renovating your home is nowhere near an easy task. What more if the real estate you are renovating is your rental property? There are many factors you need to consider. That includes your budget, the timeline, and the wants and needs of your tenants. Renovate while keeping your tenants in mind can help you achieve your rental property goals. Forget certain crucial factors, and you can end up regretting doing the renovation in the first place.
The Drawback of Rental Property Renovation
There are cons worth considering before you plan the renovation. For one, there are undeniable costs and expenses associated with the project. Before you can enjoy a better, more beautiful, and tenant-magnet rental property, you will need to invest money and other resources to make the renovation happen.
There is also a possibility of losing rental income during the renovation. This is especially true if the project takes a considerable amount of time to finish. Then there’s the possibility of having to pay for other unexpected costs.
Why Rental Property Renovation Makes Sense
Your rental property is an investment. You are in the business of providing tenants with the kind of rental space they need. Your goal is to offer a quality living space that accommodates their lifestyle and fits their rental needs.
With a rental property renovation, you can tackle more than just regular property maintenance and repairs. You are essentially investing more resources for the betterment of your investment. The goal is to improve its curb appeal, attract quality talents, and ultimately increase your rental price.
The more equity you create for your rental property, the more equity you can build. This helps boost your property value while accelerating your own capital growth. You get to work with the best local contractors in your area and enjoy that rewarding experience of successfully renovating your investment.
Rental property renovation lessons worth keeping in mind
If you are interested in renovating your rental property, know that you can learn from the mistakes of other owners. Keeping your eyes and mind open will enable you to understand the essential lessons and use these as your guide when trying to accomplish your renovation projects. Here are some lessons you need to know.
Before Investing, Think About the Return on Investment
Remember that your rental property is an investment. If a project only results in a negative ROI, save yourself the trouble by skipping the idea. You are better off investing your time to time and hard-earned cash on projects that are sure to boost the value of your property.
For example, you are after a kitchen renovation, and one of your projects is a floor replacement. Instead of simply using the cheapest flooring materials, choose wisely and find one that is easy-to-maintain, sustainable, and will work best for your rental. Thankfully, there are tons of reliable that can fit your every requirement.
Be selective in what flooring you will invest in. Why choose the cheaper alternatives if these won’t last long? Remember that you want your rental to be functional and beautiful at the same time.
Consider Tenant-proof Upgrades
No matter how great you are in screening tenants, there will be times when you will fail to screen who won’t be ruining your new floors or countertops. Not all tenants would take great care of your rental the way you do. Some will have no time for home upkeep, while others won’t know how to do this the right way.
So, choose to tenant-proof your rental. Choose improvements that can last more than the usual wear and tear. Invest in durable enhancements and have a detailed rental property upkeep agreement in place.
Stay away from non-essential systems. While some are indeed nice-to-haves, they can only end up being a cause of your headache if you end up meeting bad tenants. Consider functional but low-maintenance upgrades if you must make the investment.
Keep the Environment in Mind
More people are considering the environment when looking for properties they can rent. They want to see more than just beautiful landscaping and gorgeous indoor plants adorning the property. They want to make a difference by living in a rental that supports their green initiatives.
The following are some renovation projects you can consider to green your rental property.
- Energy-efficient appliances
- Replace old light bulbs with energy-efficient ones
- Low-flow plumbing fixtures
- Smart home technologies
- Use low-to-no volatile organic compounds
- Consider sustainable materials when renovating
- Renewable energy sources
Renovating your rental property can be a good idea if you are after quality tenants willing to pay for more. But before you remodel, be sure to keep this list in mind. This way, you no longer need to learn these lessons the hard way.