Individuals in the real estate business enjoy high returns when they open the doors to their new rental units, but after some time, their ROI dips below their property maintenance costs. Remodeling your rental houses after a particular period to increase ROI is necessary. The critical thing to note is that some renovation projects are not valuable, which you should avoid as a landlord who is looking to increase ROI after remodeling your rental units.
Here are 3 of the best remodeling projects to consider to help increase the returns from your rental property.
More than ever, individuals are opting to stay home during vacations, enjoying “staycations.” Outdoor living spaces make it easy for residents to relax and enjoy the area that they live. Therefore, if you want to increase the ROI on your rental property as a landlord, you can consider adding a deck and making your backyard attractive as part of your renovation project. As a result, your rental house will attract individuals who prioritize decks when looking for rental apartments.
Additionally, it’s important to appreciate the fact that the size of the patio you opt for and the number of bells and whistles on it will dictate the return you can expect when adding a deck. Allocating a considerable investment or what you can afford as a landlord to develop the best deck addition is a wise idea and a great investment.
In most cases, those who are seeking rentals will pay particular attention to the kitchen. A majority of people view the kitchen as the hearth of the house – you cook there, you eat your meals there, you socialize there. This is what tenants take into consideration when deciding on a place to live. If your rental unit has a kitchen that is not appealing, it will more likely than not put off potential tenants.
This may affect how long it takes before you find someone who expresses interest in your property as a landlord, which means you may incur avoidable property maintenance costs over that period. In that case, a kitchen upgrade will not only enhance the image of your rental property, but it will also simultaneously increase the value.
Planning to add an extra bathroom to supplement the existing one in your rental house is a valuable idea because it increases your returns. The more space and privacy you can offer to your tenants the better, whether it’s multiple residents who would prefer not to share a bathroom or simply for guests that come to visit. The bathroom is one of the rooms that individuals will spend the most time in, so even if you don’t have the space to add an additional bathroom, it would be wise to invest in renovating what you currently have.
Although these are our top 3 suggestions for high-value home renovation projects, there are seemingly endless projects to choose from. If you would like additional information on rental house remodeling, contact us today!