Many investors understand that making improvements to their Alexandri rental properties is necessary to keep them appealing to tenants. Furthermore, such improvements can lead to a higher investment value.
Specific home upgrades can substantially boost the value of a property. Knowing which renovations have the best ROI is important for rental property owners to achieve long-term success and profitability.
Kitchen
Start by evaluating the construction costs against the expected rise in property value when planning renovations for your rental property. According to a recent national survey, most home sellers agree that kitchen updates yield the best ROI for the money invested.
This doesn’t imply that a complete kitchen overhaul is necessary to boost your property values. Minor updates, such as refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet, can revitalize your property’s interior without breaking the budget. This gives you the ability to make important improvements without overspending.
Bathroom
The same applies to bathrooms, where even small improvements can cause substantial value increases if your facilities are modern and appealing. You might want to replace old, worn tile tub and shower surrounds with a new fiberglass overlay. Add a new vanity and mirror, or consider repainting the room in a fresh, light color. Swap out worn vinyl flooring for tile for an even more impressive upgrade.
The long-term benefits of tile are even more notable, as it lasts for decades without needing replacement and offers a more upscale feel than laminate flooring, with only a modest increase in cost. This ensures that your investment will last.
Stone Veneers
The first impression is vital in renting a property. Thus, why not upgrade the exterior of your property as well? One of the best enhancements you can make is adding manufactured stone veneer to the front of your property. Besides giving your property a new look, it also ensures a great return on investment by attracting more tenants.
In a cost vs. value analysis, swapping vinyl siding for stone veneer around entryways, pillars, or the lower third of the front exterior allowed sellers to recover almost all installation expenses. Enhancing your property before selling can raise profits by making it more marketable and allowing for higher rent prices.
Doors and Windows
Remodeling specific parts of your home can offer the best returns. Two key areas include garage doors and windows. For rental properties with garages, it’s wise to replace the garage door when it looks worn.
Though it seems minor, a new garage door can greatly boost your property’s value, akin to stone veneers. Similarly, updating old windows with new vinyl ones improves aesthetics and enhances safety and energy efficiency. These improvements can make a big difference when trying to rent out a vacant property.
Property improvements often demand significant time and money. Nonetheless, these improvements are vital for the long-term success of your rental property investment in Alexandri. By planning and budgeting for regular updates, your rental property stays competitive and appreciates in value.
To create a rental property that will attract both renters and buyers, call Real Property Management Optimum at 320-289-4649 or contact us online. In Alexandria, our property managers can assess your property and offer budget-friendly solutions to keep it competitive.
Originally published: July 8, 2022
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