When renovating a rental property, you are typically expecting a return on that investment. However, not all investments will have the same ROI. As a Nashville property management company, we have handled hundreds of renovations over the years. Because of this, we have a solid grasp on what the best renovation choices are when looking to maximize your ROI. Continue reading to explore some smart renovations for your rental property.
Prioritize the Kitchen
The kitchen is often one of the highest valued rooms in a rental property. Most renters want to have an updated, modern looking kitchen. It is one of the most important rooms in the house when looking to renovate/remodel. A nice kitchen will make your tenant's day-to-day lives much better. On top of that, the kitchen is often were many of your guests will congregate when you have company over. Consider updating some of the items below to get the highest ROI:
- Countertops
- Appliances
- Cabinets
- Flooring
Don't Neglect the Bathrooms
After the kitchen, bathrooms may be the next best room to renovate/remodel when seeking a high ROI. Everyone spends a lot of time in their bathroom and they want it to look nice and be a comfortable place to get themselves ready for the day. The sink, shower, and toilet should all be in perfect working order. The following upgrades are a game-changer for bathroom remodels:
- Light fixtures
- Mirrors
- Counter/sink
- Tile floors
- Water pressure
Flooring Matters
The flooring you choose to use throughout the home plays a big factor in its appeal. Many people prefer hardwood in the kitchen and living room areas. On the flip side, most renters want their bedroom to be comfortable and cozy. Choosing carpets for these rooms is likely your best option. Make sure that the type of flooring you choose matches the overall aesthetic of the property. Mismatched colors and textures will often reduce the appeal of the interior.
Landscaping and Curb Appeal
The curb appeal and landscaping is what creates the first impression of your rental property. You can make the interior as nice as you want, but if the curb appeal is bad, it won't get the attention that you're looking for. As far as landscaping goes, here are a few things to nail down:
- Well-trimmed bushes and trees
- Freshly mowed lawn
- Attractive flower beds
- Remove overgrown vines
Aside from the landscaping, here are a few other things you can do to boost your curb appeal:
- Paint the front porch
- Pressure wash the exterior
- Re-seal the driveway
- If gravel, add some fresh gravel and fill in any bare spots
Taking care of the items listed above will greatly improve the curb appeal of your property, which will increase the amount of attention that your listing is getting. Typically, better looking properties can generate higher rental rates.
Energy Efficiency
Having an energy efficient home will save both you and the tenant money in the long run. Ensure that you have a well-insulated property to keep utility costs down. This will also help prevent your tenants from over-working the HVAC unit during the peaks of summer and winter. Adding energy efficient appliances and light bulbs throughout your home will also help keep costs down. Anything you can do to reduce monthly utility bills will be to your benefit.
Bottom Line
By making smart choices with your renovations, you will attract higher-quality tenants, command higher rents, and improve the overall value of your rental property. Focus on the kitchen, bathrooms, and flooring of the interior to make the most of your remodeling. Don't forget to consider insulation, efficient appliances, and light bulbs when thinking about renovating your property. From the outside, it is very important to put some effort into the curb appeal. Ensure that the exterior is clean and the landscaping is well-kept. If you do all of the above, you are certain to maximize the ROI of your renovations and improve the long term value of your investment. Because we have been a Nashville property manager for over a decade, we have perfected the renovation process for rental properties. If you happen to own property in the Nashville area, reach out to us today! We would be more than happy to take over management for your property and maximize its value!
