Summer is peak moving season, which means now is the best time to find potential tenants for your rental property. Unfortunately, this also means you’re up against a lot of competition as one of the 28.8 million small business owners in the United States.
So how do you appeal to potential tenants and stay one step ahead of the game compared to other landlords? It’s important your rentals not only appeal to potential tenants but that they also reflect their rental costs.
That said, if you want tenants that are willing to stay for more than one year’s lease, you need to make your rental property appealing in terms of both aesthetics and price.
How do I choose the right renovations?
When you’re looking to renovate or change up your rental property, you want to look at your property the way a homeowner looks at theirs. That is, you want to choose the renovations that will have a high return on investment.
For instance, by choosing the right roofing material can reduce 30% of the property’s energy needs. Just be sure that you’re choosing the right renovations for your property, your budget, and your area. The average cost of a multi-room remodel is approximately $42,892.
Consider the areas and rooms around your rentals that could be improved. Are your appliances out of date? Is the apartment’s layout too awkward? You need answers fast. If urgent care clinics can keep wait times under 30 minutes, you can get answers to these questions in no time.
It’s also a good idea to look up recent data on renovations and remodels in your city. If there’s been a growing number of bathroom remodels in your city and your rentals’ bathrooms haven’t been updated in the last decade, chances are that’s the change you want to make.
Choose the renovations with the highest ROI
Remember that you’re not just upgrading your rental properties to get the attention of potential tenants. You’re also upgrading your rental properties to make the most of your return on investment.
You want projects that are modern, functional, and have a high ROI. Here are just a few of those projects to consider:
- Kitchen upgrades. A minor kitchen remodel has an ROI as high as 82.7% on average. Minor kitchen remodels usually mean updating cabinet fronts, upgrading drawers, replacing the stove, replacing countertops, installing new flooring, installing a new sink and faucet, and painting.
- Bathroom upgrades. Kitchens and master bathrooms are the most popular sites for remodels. A minor bathroom remodel can go a long way in your rental property. Replace any old or outdated tiles you have with white tile. You may be able to save some money by leaving the original tile around the sink as a backsplash. Depending on how old the tub and sink are, it might also be recommended to switch them out.
- Vinyl window replacements. New vinyl windows help to keep energy costs down. They also look better and give your rentals a modern, well-kept look compared to older windows.
When you invest in a rental property, it’s important to choose projects that are going to benefit the property for the long term. If you make smart choices about your renovations and upgrades, you’ll find long-term tenants willing to pay more for their lease.