You may be wondering, "What are the best rental property upgrades for my Palm Desert, CA rental property?" Well, we have some great tips that will help you decide what to do with your rental home to attract quality tenants, increase your returns, and reduce maintenance issues.
Whether you're interested in increasing the rental rate or keeping your home competitive with nearby rentals, there are specific updates that can make a big difference. Not sure where to start? We'll tell you about the best (and worst) rental property upgrades from the perspective of a Palm Desert property management company.
Up-to-Date Rental Properties Boost Returns
Why should real estate investors consider putting money into a rental home? If the flooring, appliances, or paint colors are outdated, you might be losing money (without realizing it)!
Property owners make more money when they know what Palm Desert area renters look for and deliver homes that meet those needs and wants. The right property upgrades can justify a rental rate increase or encourage tenants to renew for another lease term. More rental income and less turnover help property owners make more money!
What Are the Best Upgrades for a Property Owner?
What should real estate investors focus on when considering upgrades that pay off? Residential property management experts can tell you that many updates don't require a significant capital investment. However, they can deliver a significant improvement to your bottom line.
Fresh Paint
Start with the interior of the home. Sometimes simply painting the walls a clean, neutral color is all it takes to brighten a home and help it feel brand new.
New paint covers a multitude of rental property issues, including wall scuffs and smells that linger after renters move out. When new tenants move into a home with freshly painted walls, they know they've signed a lease to live in a quality property.
The best property management companies will caution a property owner about paint colors. Avoid anything that's too trendy or makes it difficult for residents to decorate in accent colors or styles that they love. While bright or bold colors might photograph well in your rental listing, they can deter quality tenants from putting in an application for the property.
If new paint makes the right difference inside, tackle the home's exterior next!
New Rental Property Flooring
Scuffed and damaged floors or carpets don't deliver an air of quality to new residents. Property managers can verify that with long-term renters, leaving them with outdated and worn-out flooring year after year won't encourage them to keep renewing.
However, some property owners often hold out on replacing the floors because it's an expensive upgrade—but it doesn't have to be! Choosing quality (yet durable) floors can be an excellent update that doesn't deplete your maintenance budget or cash reserves. When it's clear that the flooring has to go, look for cost-effective options like laminates and tiles that give a home a modern look, last for many years, and aren't as expensive as high-end wood floors.
Updated Outlets and Fixtures
New lighting and outlets with USB charging ports are simple and low-cost ways to spruce up a rental unit. Adding LED fixtures and security lights also keep renters safe and reduces utility costs.
Consider other smart home features to attract quality tenants. These updates can include a programmable or learning thermostat, smart locks, and webcam doorbells.
New Hardware
Kitchen cabinets can suffer plenty of dings and scratches through multiple tenant residencies. Sometimes, thorough cleaning and replacing old hardware with new handles and hinges significantly improve the look of kitchen and bathroom cabinets. Interior and exterior doors can also benefit from new knobs and hinges to boost the property's aesthetic.
What Upgrades Does a Property Manager Recommend Avoiding?
If you're considering "luxury" upgrades like granite or marble countertops and expensive hardwood floors, you risk never recovering your costs from those updates.
Most Palm Desert renters want quality homes at affordable monthly rental rates. Applying high-end upgrades can require a rental price that's too high for the market and your ideal tenants. While it's important to avoid the cheapest materials and labor when upgrading a property, steer clear of expensive enhancements that can hurt your returns in the Coachella Valley area.
Boost ROI With Smart Upgrades and Palm Desert Property Management
If you're looking to increase your rental property's ROI, it might be time to consider some updates. Whether adding new appliances, making repairs or repainting the home's interior, the right update can make a big difference in attracting quality tenants and commanding competitive prices.
If you're already giving this some thought, work with a Palm Springs or Palm Desert property management company to make the right decisions about profitable upgrades. McLean Company is here for guidance on what will work best for your type of property! We'll help identify the updates that are perfect for turning renters into long-term residents and help you answer the question of "how much can I rent my house for"—all while maximizing profits. Give us a call to learn more about our property management services today!
