Certain renovations can spruce up your rental property to increase the value and attract quality tenants. However, many property owners struggle to determine the ideal time for a renovation and which upgrades will help increase revenue vs. updates that never pay off.
If you find yourself in this position, then this blog is perfect for you! Should you renovate now—or later? Here are some tips from the best property management Cathedral City offers to help you make an informed decision about the right time to upgrade a rental property.
Different Types of Renovations
There are many ways to improve a residential property to attract renters, from simple upgrades (like new light fixtures) to more complex tasks like demolishing walls. Which renovations do residential property management companies think are the most beneficial to rental properties? Smart upgrades boost returns!
Property managers recommend targeting areas that address what renters want in a home. Things like a room's appearance, feel, and functionality can make your property more attractive (or less appealing) to prospective tenants. When thinking about the right time and type of renovation, consider:
- The kitchen. Minor updates like a new coat of paint on the cabinets are a good start. New countertops can modernize a kitchen to make the entire kitchen area look new. For additional updates that impress renters, change out the faucet and backsplash. Anything that can make a make potential tenant's life easier can benefit your bottom line!
- The bathroom. Start with the toilet seat and change it if it has cracks or is outdated. Replace the bathtub or shower tiles and fixtures. Install shelves for convenience and extra storage areas. For more "wow" factors in the bathroom, upgrade the vanities, mirrors, and lighting.
- The exterior. Since curb appeal is the first thing a tenant will notice when they pull up to the house, consider planting new grass, trimming trees and shrubs, fixing cracks in the walkway or driveway, or repainting the front door.
- The flooring. Updating the flooring is an excellent investment, but be sure to choose durable materials that enhance the style of the home. Property owners don't need to overspend on flooring that's difficult to maintain or won't hold up to daily use with tenants who have kids or pets.
- The walls. A fresh coat of paint is cost-effective and can do wonders for your rental property. Choose a neutral color that makes it easier for renters to incorporate their personal decorating style into the home.
If you're not sure where to prioritize your next renovation project, property managers in Cathedral City can help!
Is the Renovation "Nice" or "Necessary?"
As a real estate investor, you want to make changes to captivate the best tenants and keep repair costs down. It's important to choose the renovations that will deliver the most significant return on the investment you are making.
Before scheduling a project and buying materials, ask yourself: is this renovation simply a "nice" update, or is it "necessary" to improve ROI? Making expensive upgrades (like granite countertops) in a property where you can't increase the rent high enough to pay off can leave you with a "nice" update that becomes a costly mistake.
A property manager in Cathedral City is an excellent resource when evaluating projects and choosing the best options to improve tenant retention and your bottom line!
Should I Wait to Do the Work Between Leases?
While you can start a renovation project with a tenant in the rental property, it's often a better idea to work in between tenants. If a new tenant is moving in soon, plan extra time between tenancies to make improvements that can allow you to charge more in rent.
Conducting work in an empty rental means property owners don't have to deal with complaints from tenants about inconvenient or unsafe conditions in the home. Owners also don't have to ask residents to move out while work takes place, risking income loss and unhappy renters.
Plan For Renovations
Before tackling any renovation project, property owners should have a plan in place. As part of your research into potential upgrades, a property manager can help you look at other properties in the area to see what types of renovations have been made in those properties and how specific updates can make your rentals more competitive.
When you have your next project in mind, schedule your contractors and materials before a tenant moves out, so you can get the house ready as soon as possible. A Cathedral City property management professional also recommends conducting your make-ready process along with a renovation project between lease terms to maximize resources and reduce the impact on residents after they move in!
Hire a Cathedral City Property Management Company for Guidance
Renovations projects are necessary to get more out of your real estate investments over time, but make sure the bang is worth the buck! A property management expert helps a property owner analyze potential updates and tackle projects that improve long-term returns. Contact McLean Company to help make the right renovation decisions and find the best vendors in the Cathedral City area to maximize your investments!
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