If you’re planning on upgrading your property to make it more attractive to renters, start considering making some strategic upgrades and renovations. By remodeling the right parts of your property, you not only boost its value but make it easier to rent it. The more curb appeal your property has, the more prospective renters will be interested in renting it. This can end up leading to thousands or tens of thousands of dollars in additional return on your property sale.
When making property upgrades ahead of listing, there are three main areas you want to focus on for the greatest possible return on investment (ROI): your kitchen, your master bathroom, and your backyard.
For many families, the kitchen is the center of the property and the place where everyone in the household gathers most often. Since families and their guests spend so much time together in the kitchen, it’s perhaps not surprising that renovating this space has an incredibly high ROI (80%+). Translation: Americans love their kitchens.
The first things people see when they enter the kitchen are usually the kitchen cabinets and countertops. Therefore, your renovation should prioritize upgrading both. Updated cabinets can improve the kitchen’s functionality as a usable space, along with how it looks. Unlike in past decades, stone countertops are no longer a luxury item but a baseline expectation for many renters when they see you have a remodeled kitchen.
To make the best possible impression on potential renters, refresh the kitchen floor to help bring the overall design aesthetic together. Tile is always a good option due to its durability and water-resistance, but vinyl floors have also come a long way in recent years and can stand up to the wear-and-tear of the kitchen. Also, don’t forget about some smaller updates that can make a big impact, including repainting the walls, adding pendant lighting, and installing energy-efficient appliances.
Although you may not think much about it, most renters strongly consider if the property has a backyard especially if he or she owns a dog or has children. That’s partially why you can see an ROI of nearly 75% if you make a major addition to the backyard. However, make sure that it is something desirable in the area where you live—a refurbished backyard in the suburbs is generally more value-boosting than one downtown.
If you live in a hot summer climate, a swimming pool in the backyard can be a significant advantage. However, in colder areas of the country, a swimming pool can be a detriment because many property investors will see the necessary maintenance as more trouble than it is worth. When in doubt, talk to a local realtor to get their perspective about what backyard upgrades work in your area, and which ones do not. Generally speaking, a new deck, fire pit, or additional shade trees work in just about any backyard, provided there’s space.
A bathroom remodel typically carries a significant ROI: approximately 64% or greater. As long as you avoid moving plumbing, wall, and electrical outlets—all which require the work of a skilled contractor—you can generally keep your costs down and extend your bathroom’s ROI to even greater heights. In the bathroom, focus on replacing the shower, bathroom vanity, and flooring first.
You may have faded or otherwise outdated linoleum on your bathroom floor, especially if your house is older. A good way to change the appearance of the entire bathroom is to replace this with modern tile. You can make the shower the new centerpiece of the bathroom with fresh fixtures and a new glass door. Breathe new life into the space by updating the vanity with new cabinets and a new countertop. If you cannot replace the entire sink, at least consider updating the fixtures.
These renovations not only can increase your property’s value and curb appeal, but they can also improve your quality of life during the time you continue living in the property. For even more property remodeling ideas and ways to boost your value ahead of listing, be sure to check out this new infographic.
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