Nothing is more attractive to home renters than updates and improvements made to the property. Not only does this draw in new tenants, it also can increase the property value.
Renters these days, especially millennials, are looking for modern home improvements including advanced technology, energy efficient appliances, and welcoming outdoor areas.
As a rental property owner, improving and upgrading your rental home is a great way to increase overall property value. In 2021, making smart, periodic investments will attract quality tenants (related: how to find a good tenant) and boost your ROI, which can put more money in your pocket in the long run.
Return On Investment
Keeping your property up to date can have a huge impact on your renters and increase your ROI. ROI, or return on investment, measures the total profitability of a property against the total expenditure. Both indoor and outdoor home improvements are a great way to boost your ROI and create a great impression for prospective renters.
Whether it’s applying a fresh coat of paint in each room, updating the kitchen appliances, or installing new flooring, making small or large improvements to the property can make all the difference to the overall value.
Here are some of the top home improvement ideas that you should implement in 2021:
- Boost curb appeal
- Fresh paint
- Modern appliances
- Advanced security devices
- New flooring
- Bathroom upgrades
- Energy-efficient updates
Boost Curb Appeal
The first thing that your prospective renters will see when approaching the property is the outdoor landscaping and curb appeal. Keeping the outdoor area well-maintained should be one of the top priorities for property owners. With quality tenants that willing to pay for a nice outdoor area, putting a little time and money into the curb appeal has the potential to majorly pay off.
Neglecting the outdoor areas of your rental property will be a turn-off for renters when they go to view the home. Keeping the lawn maintained, trees pruned, and adding flowers or plants to the landscaping can make the area look it’s best. If there is a deck or porch, it’s also important that this area is kept clean, painted and powerwashed each summer. This alone will keep things looking maintained, welcoming, and fresh each year.
Fresh paint throughout the home is another way to increase the overall value. Whether the home is new or old, a fresh paint job can make the space look brand new. Applying a fresh coat may not seem very important, but this alone can catch the eye of renters and create the impression of a newer home.
Choosing bright, welcoming colors will immediately make tenants feel more comfortable. Neutral colors such as white or beige are best for rental homes to ensure that all tenants will feel at home in the space. These simple wall colors also allow for fun pops of color in furniture or home decor.
If there’s one thing that renters are consistently looking for, it’s homes that have modern appliances. As a rental home owner, adding these newer appliances can get quite expensive and may be a large investment. However, there is major potential for these to pay off by adjusting rent and charging for utilities appropriately.
Some appliances to consider adding to your home include:
- Washer and dryer
- Stove and oven
Advanced Security Devices
Any technology updates are a good idea, especially when it comes to security devices. Installing a smart lock system or security cameras on the property will make your tenants feel safe and comfortable in the home at all times.
Not only does this provide convenience to your tenants, it also can be beneficial to you as a property owner as well. If there is any suspicious activity, break-ins, or damages done to the outside of the home, it will be easier to narrow down if there is surveillance.
New flooring is essential after years of wear and tear. Chances are, while viewing the property, tenants will notice flooring with stains, damage or signs of aging. Installing a durable flooring option can ensure longevity and keep renters happy.
With all the different flooring options such as carpet, hardwood or tile, you should go through the home to see which material will work best for each room. Although it’s one of the larger home investments, new flooring is a huge selling point for quality tenants.
Updated bathrooms are desired and recognized by tenants right away. Remodeling this space or purchasing newer appliances and fixtures will do wonders for your property value. A new shower space, toilet, and vanity area will be much more appealing to renters than outdates appliances.
Bathroom upgrades are a great way to add property value as well. Choosing energy-efficient appliances such as a water-saving showerhead and faucet can save money on water bills. New lighting and flooring are also great ways to increase the overall value.
Making consensus, energy-efficient upgrades to your home will not only help save the environment, but it’s also bound to draw the attention of propspective tenants. Now more than ever, people are becoming more eco-friendly and working to reduce environmental effects. Although initially it may be expensive, quality tenants will appreciate the cost-effective amenities.
Some energy-efficient upgrades to consider include:
- Low-flow toilets
- Solar panels
- Smart thermostat
- Water-saving accessories
- Energy-saving washer and dryer
Reach Out to Local Property Managers
Implementing strategic, periodic home upgrades every now and again is essential in finding great tenants and increasing the overall value. Whether you’re installing new flooring, modern appliances, or making outdoor improvements, the task list for landlords can seem never ending.
Do you need help deciding which upgrades to make? Not sure which improvements will pay off?
If you need somewhere to turn to, don’t hesitate to reach out to the local property managers at Bay Management Group. With our expertise, we can help increase your property’s overall value and attract quality tenants that you enjoy renting to.