If you happen to be a lucky owner of not one but multiple properties, chances are the thought of transforming them into rentals has crossed your mind at least once. And why wouldn't it? After all, the possibility of earning passive income does indeed sound attractive. But, unless the place is brand new and already features high-tech appliances, you'll probably have some upgrading to do before you put it out there for prospective tenants to see. Still, adjusting solely for the sake of appearances isn't something that experts would recommend. Instead, you should focus on making smart changes - ones that will ultimately bring you higher revenue. Having trouble deciding what projects to tackle? Well, you might have an easier time doing so after reading about the six rental renovations with the highest ROI.
Rental Renovation Projects that Provide the Highest ROI
Your rental property has excellent earning potential. But, for it to generate the highest possible profit, you'll have to resort to sprucing it up. Here, we help you out by informing you of projects that should definitely pay off in the long run.
#1 Kitchen Renovations
Kitchens are often portrayed as souls of homes, and the role they play in attracting future tenants is not to be neglected. A kitchen equipped with decades-old appliances is sure to drive the tenants away, so the focus should be on improving the looks, but more importantly, the functionality. Older models are notorious for consuming a crazy amount of electricity - and that's the bill that the tenant will soon be responsible for paying! On the other hand, tech-savvy appliances are designed with efficiency in mind and should contribute to lower bills. They should also lead to you having more parties interested in renting the place.
You might also want to consider upgrading the cabinetry and countertops. For example, granite variants of the latter are particularly sought after at the moment, making countertop change-ups one of the rental renovations with the highest ROI.
#2 Bathroom Renovations
Is it the kitchen that people use the most, or is it the bathroom? It's tough to say, but nonetheless, the bathroom is a room we absolutely can't live without! We spend an extensive amount of time in it, so it's only natural our tenants, much like us, would want it looking its best. Here are a couple of ideas as to what you could do to upgrade the area:
- Invest in a new toilet seat
- Replace the old shower head
- Update vanities and faucets
- Have limescale dealt with
Truthfully, there's so much more you could do to improve the looks and functionality of the bathroom. It all depends on its current condition. Some of these adjustments you should be able to handle yourself, while some might require professional help.
#3 Increasing Brightness
While you might enjoy dimming the lights while watching a movie, the truth is, nobody likes having their home poorly lit all the time. It does the opposite of boosting productivity and actually has a way of making people feel tired. If you wish to rent out your property faster and for a better price, you should seriously consider increasing the level of brightness in it. You can achieve that by introducing additional lighting sources into the area or opening up the house so that it invites more natural light in. In terms of artificial lighting, the place should ideally include all three types - ambient, accent, and task lighting.
#4 Update the Flooring
You might be tempted to throw in a rug and forget all about this step, but honestly, it pays to update the flooring. While it truly is costly to install hardwood floors, the project itself isn't considered one of the rental renovations with the highest ROI for no reason. In fact, these types of floors are low maintenance and quite sturdy. Not to mention they're incredibly easy on the eyes, too!
Just keep in mind that, while going through a floor renovation, you shouldn't keep the furniture and other items on the premises. It is best if you temporarily transport them elsewhere. A storage unit comes to mind since it can serve many purposes, one of which is to act as a short-term safe space for your items while your home is being renovated.
#5 Repainting the Interior
If you wish to boost the value of your rental property, you should resort to repainting the interior. But instead of going with some crazy hues, how about you opt for the ones that allow more freedom when it comes to decorating? Neutrals, for example, are all the rage right now. They include all shades of white, beige, grey, and brown.
It doesn't take a genius to repaint, and in theory, you could do it yourself. However, to ensure the job has been done up to the highest standards, without the furniture and floors suffering in the process, getting in touch with a professional is highly recommended.
#6 Improving Curb Appeal
It's what's in front of the house itself that matters as much as what's on the inside. After all, the first impression can make or break the tenant's decision of whether to sign a lease. Work on improving the curb appeal, and who knows? You might even have multiple people fighting over your rental soon! You'll want to pay special attention to fixing up the following:
- Curb cracks, if there happen to be any
- Overgrown trees, bushes, and lawn
- Front-door paint job
- Broken fence
In Conclusion
Although there are many improvement projects you could tackle, the ones mentioned above are ultimately rental renovations with the highest ROI. Nevertheless, it's not only adjustments that allow you to earn more. In fact, it's your attitude towards things like having pets on the premises that could give you a chance of getting more out of your rental. With somewhat limited choices, pet parents are often willing to spend significant amounts on rent. They don't move as often, either, which contributes to you having a steady influx of cash across more extended periods. Thus, you can recoup all the money spent on renovating sooner rather than later.
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