Last Updated on February 20, 2023 by Admin
As a landlord, you work hard to keep your building at maximum rental capacity each year and love the community you manage. But, if it’s getting increasingly challenging to attract new tenants despite offering generous move-in perks, investing in your property might be a more effective tool.
The great thing about upgrading your property is that it benefits your tenants and your future return on investment. So, what type of investments will get you the best return? We’ve got some of the most popular recommendations below.
Top Property Investments to Boost Your Rental Property’s ROI
Renovations and upgrades can be costly, so any changes you implement must maximize your rental’s value and attract new tenants. Regarding cost, keep in mind that you can pass along some of the expense through rent increases and likely attract a higher-income demographic willing to pay extra for a modernized living space.
Update the Grounds the First
To renew attention to your rental property quickly, focus on the outside of your building and the surrounding grounds first. You want prospective tenants to have a positive first impression when they arrive. This means sealing up cracks and potholes in your drive, repairing and repainting curbs, and ensuring walkways are event and not flaking apart.
You should work with a commercial paving company to complete this and ensure these structures are up to code. Then, they can complete these jobs quickly with minimal inconvenience for your current tenants, who will also appreciate having an improved landscape greeting them when coming home from work.
Install Modern Countertops
One of the most important areas in a rental is the kitchen. If your cabinetry and countertops harken back to the late 80s, consider installing updated countertops and painting the cabinetry to match. This step can go a long way in providing a fresh update without requiring a complete demo of these areas.
When choosing what materials your new counters are comprised of, you have a wide range of options and should decide based on your tenants’ demographics. But, at the end of the day, you want to prioritize durability and functionality while avoiding cheaply manufactured options covered in laminate.
Expand Usable Space
One of the frustrating aspects of rental properties is that there are always areas in the layout that need to be more utilized because they need to be finished. Imagine how much additional rent could be earned each year by turning a dark, unused basement space into a family or recreational room. You can also look for ways to get more use out of the grounds surrounding your property. For instance, they likely have to share the backyard if you have a multi-tenant unit. Consider installing a back patio or deck to create a community gathering spot.
Rejuvenate Your Rental Units with Lighting
Your building’s lighting can be a telltale sign that your rental units haven’t been updated anytime recently. Consider installing newer lighting fixtures that sport popular metal finishes seen in homes today. Also, do your maintenance crew and tenants a favor by installing LED bulbs that last longer and are more energy efficient. This attention to small detail can go a long way in convincing prospects to apply for a lease.
Consider Installing Smart Technology Features
Only some property investments will involve renovating a room. However, as a landlord, you must balance many responsibilities, including customer service, rent collection, maintenance requests, etc. If you’re finding that there are just not enough hours to keep up with this demand, consider automating some of your everyday tasks. For example, you could implement an online maintenance request process that centralizes all information and communication related to a work order.
Other technological investments you could make that would enhance your property’s appeal include:
- Motion sensor lighting
- Security systems for each unit
- Online rent payment apps
- Video doorbells
- Wall outlets that feature USB ports
- Smart locks
Save on Water Costs with Efficient Fixtures
Whether it’s your or your tenants’ responsibility for the utilities, finding ways to save benefits everyone involved. This is especially true when it comes to water since many commercial property complexes have onsite laundry facilities. Investing in low-flow toilets and fixtures and installing high-efficiency washers can save a pretty penny monthly on the water bill.
Your tenants and mother nature will appreciate your conscious effort to conserve this important resource.
Update Flooring in Key Living Areas
Attracting new renters and giving current ones a reason to stay is a never-ending goal for many landlords. If your property was recently renovated and the flooring already looks worn and lackluster, focus on updating the flooring in residential utility areas and community-use rooms, like the onsite gym or event space.
Of course, you will have to decide which materials would be best for your new floors, so that renovation will be optional after just a few years. Wood is always popular but comes at a higher price and requires diligent maintenance. Laminate and tile are more attractive than carpeting and will hold up better in heavy traffic zones like the kitchen and entranceway into the rental unit.
Makeover Bathrooms
Bathrooms are private spaces that should provide comfort and convenience to your tenants. This expectation makes this room and the kitchen area your two biggest sellers when trying to lease a rental unit. However, if the bathtubs look dingy, the tiles are cracked, or the toilets have severe hard water stains, investing in updated features can maximize the impact on potential renters.
Consider installing a modern mirror with built-in lighting and a vanity featuring added storage compartments for easier organization. These changes can transform an uncomfortable bathroom space into one of the more appreciated spaces in your property’s layout.
Invest in Energy Efficiency
Even though your tenants may be responsible for the cost of utilities in their rental units, using inefficient appliances and electrical systems can cause a drain on power for everyone living and working on the property you manage. Sure, installing energy-efficient appliances in every unit is costly, but you could gradually phase these upgraded models in. For example, when a twenty-year-old stove gives out, take the opportunity to modernize instead of trying to keep nursing it along with temporary repairs.
Many commercial properties can enjoy a hefty tax deduction for this investment, which can recover some of the expense. Plus, new appliances come with warranties, so if things go wrong, you won’t have to worry about paying for the repair or replacement if things go wrong.
A Coat of Paint Can Do Wonders
Applying an all-over coat of paint is one of the first and easiest investments to improve your rental property. When maintenance only applies touch-ups to scuffs, a mismatch in the vibrancy of the color can occur, giving walls, trim, and doors a worn-out appearance.
Additionally, you can completely change up the color scheme to improve the overall modern feel of your units for tenants and prospects touring your property. Just keep it simple when choosing what shades to coat the rooms in. You probably don’t want to use high-maintenance shades like white and light gray, but keep in mind that renters will have their own preferred aesthetics, so you need the walls to blend in with their decor styles.
The Takeaway
As you have read, property investments should improve your property’s value by creating attractive and modern living areas. So whether you decide that new kitchen cabinetry is in order or want to highlight how secure your community is by installing additional security features to give tenants peace of mind, enhancing the rental experience is key to profitability.
Quality tenants are looking for a balance between aesthetically pleasing layouts and value-added amenities that make their residency more convenient. Meeting this expectation will help you improve your building’s ROI and create lasting landlord-tenant relationships.
Related Posts:
- An Overview of Construction Equipment Rental Business in India
- A Guide to The Most Common Types of Commercial Leases
- Porta Potty Rental
- Why do you need to remodel your home bathroom?
- What You Need to Know about Taxes-Based Triple Net Listings
