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Which Renovations Give You the Best Return On Investment?

Contemporary Blue Kitchen with Renovated Windows, Cabinets, and Countertops

If you are as much alike as all investors, you already know very well that improving your Royal Oak rental properties is a primarily important way to effectively attract quality tenants. At the same time, regular property improvements are also the key to adding value to your investment. The vital thing to understand referring to home improvements is that some add more value to a property than others. For Royal Oak property managers, grasping which improvements give the best return on investment is crucial to your business’s long-term success and profitability. Here are just a few of the top renovations that industry experts report will give the best return for the cost.

Garage Door: If your rental property has a garage, one of the easiest and most cost-effective ways to add value and increase curb appeal is to replace or upgrade the garage door. It’s not essential to spend an excessive amount on your new garage door to get this benefit, either. Even a conventional garage door of good quality will normally render a high return on your investment and significantly improve the look of your property. Pro tip: Pair your new garage door with a smart opener to cause even more tenant appeal.

Stone Veneers: Speaking of curb appeal, updating your rental home’s exterior is equally on the top of the list of inexpensive updates that offer big returns. In many cases, the upgrade that will add the most value to your property is manufactured stone veneers. According to a 2021 Bankrate report, replacing vinyl siding with stone veneer around an entryway, pillars, or the lower third of your property’s front-facing exterior walls assisted sellers to recoup pretty much of the cost of installing it. Picking this upgrade before you choose to sell may hold an even bigger profit potential, making your rental home more marketable and allowing you to charge a higher monthly rent.

Kitchen Remodel: For your rental property’s interior, the major upgrade that will probably maximize your property’s value is remodeling the kitchen. People love their kitchens, and tenants are no exception! In a recent nationwide survey, almost all home sellers suggested that kitchen updates offered the best return on investment (ROI) for the money spent. Having said that, that doesn’t necessarily mean you need to re-do the entire kitchen to indeed see your property values climb. Rather, minor updates, such as refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet, can restore your property’s interior without breaking your budget.

Updated Bathrooms: The same is true for bathrooms, where unless your property’s facilities are unusually dated or hideous, even small renovations can set off desired increases in value. Look into covering old, worn tile tub and shower surrounds with a new fiberglass overlay. Bring in a new vanity and mirror, or look into painting the room a fresh, light color. Replace worn vinyl flooring with tile for an even larger upgrade. The long-term benefits of using tile are even greater since tile tends to last for decades without needing replacement and has a lot more posh feel than laminate flooring, though the price tag isn’t that much higher.

Small Updates: As you orchestrate your rental property improvements, don’t neglect the small upgrades that can make a great difference. As an example, simply replacing outdated light fixtures in strategic areas of the home can make the entire property look better. Indeed, adding appealing outdoor lighting, painting the front door a wonderful new color, or replacing worn-out window blinds can all present high returns relative to the cost. The same goes for light switches and outlet covers, cabinet hardware, door knobs, and other small details. These small updates are cheap while undeniably improving the look and feel of your rental property. Pro tip: Upgrade to a smart thermostat, smart locks, and other tech-friendly features to attract tenants rapidly!

Providing acceptable property improvements and upgrades is imperative to your investment’s long-term rental success. By orchestrating and putting these and other home improvements into your Royal Oak rental property’s operating budget, you can warrant that your property stays competitive and continues to make considerable increases in resale value.

 

Would you be interested in more information about how to create a rental property that both renters and buyers will be attracted to? Give Real Property Management Metro Detroit a call at 248-808-6550 today. We can help you evaluate your property’s current condition and recommend inexpensive ways to make sure that your property stays competitive in rental and resale markets.

 

Originally published: March 12, 2021

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