Rental properties need updates after a while to maintain their appeal and value. Obsolete fixtures and worn-out interiors can decrease rental income.
It’s critical to select the right time to update them. Replacing carpets, repainting walls, and updating appliances every few years is a great start. On the other hand, extensive upgrades namely granite countertops or hardwood flooring might not be worth the cost. Properly weighing the advantages and disadvantages can make the decision much more manageable.
The Pros
Upgrading rental properties can make them more attractive to potential tenants. When renting a home, tenants often seek out properties that endow features and amenities that align with their selected lifestyle. To attract potential renters, improving your rental property with modern kitchen appliances, bathroom fixtures, and other best features may be necessary.
After renovating your rental properties, you can expect to easily increase the rent on a refinished or upgraded rental home, depending on your market. Quality upgrades can attract potential residents eager to pay more for a better living experience. These residents are also likely more willing to take better care of the property, which can extend the long-term profitability of your rental properties.
Additionally, taking advantage of quality materials for upgrades can add value to your rental properties and increase their lifespan. With long-lasting value and return on your investment, putting into use higher-quality materials is a great choice for rental property owners.
The Cons
When planning to upgrade your rental property, making it a point that the upgrades add value is essential. Overspending on upgrades can result in a more extravagant cost that might not be recoverable. Upgrades need an initial cash investment, so checking your budget and always keeping in mind you have enough or satisfactory cash flow to cover the cost of home improvements while waiting for the ultimate return is chief and paramount.
Before you make up your mind to upgrade your rental property, you must think of the probable drawback of overpricing it. One way to avoid losing out on potential tenants is to verify comparable properties in your area and distinguish whether your remodeled or upgraded property’s price point is desirable. This will help make it a point that you’re offering a fair price and staying competitive in the market.
It is similarly very important to know that not all upgrades will increase the value or demand for your property. You should take the time to distinguish which upgrades are imperative and which ones are not. This will help you avoid costly upgrades that do not add value to your rental property.
Deciding on Property Renovation
If you’re feeling uncertain about whether your rental homes are getting enough attention from potential residents, seriously think about bringing them up to date to keep up with the competition. If your rental properties have an obviously outdated design and feel that may not draw many renters, bringing about a plan to renovate and modernize the homes can be a great approach.
You can enhance your rental properties’ overall appearance and functionality by implementing upgrades such as new appliances, updated flooring, fresh paint, and modern fixtures. These upgrades will present your rental homes with a fresh look and make them more appealing to renters.
Contact us today for more information on highly optimizing and maximizing returns on your real estate investments in Bullhead City and the surrounding area. Real Property Management Northern Arizona can offer qualified advice on management and real estate investment matters. Call us at 928-757-7368.
Originally Published on August 31, 2018
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