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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 precisely like many investors, you already comprehend that improving your Exeter rental properties is a basic approach to appealing to quality tenants. At the same time, regular property improvements are also the key to adding value to your investment. The principal thing to take in toward home improvements is that some add more value to a property than others. For Exeter property managers, taking into account which improvements tender the best return on investment is primal to your business’s long-term success and profitability. Here are various top renovations that industry experts say will tender 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 imperative to go really high-cost on your new garage door to get this benefit, either. Even a general garage door of good quality will normally yield 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 increase even more tenant appeal and charm.

Stone Veneers: Speaking of curb appeal, updating your rental home’s exterior is, in addition, on the top of the list of fairly reasonably priced updates that offer big returns. Generally, 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 aided sellers to recoup most of the cost of installing it. Determining this upgrade before you coordinate to sell may hold even more significant 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 chief upgrade that will, in all likelihood, maximize your property’s value is remodeling the kitchen. People love their kitchens, and tenants are no exception! In a recently done nationwide survey, several home sellers pointed out that kitchen updates offered the best return on investment (ROI) for the money spent. Still, that doesn’t follow that you need to truly re-do the entire kitchen to see your property values surge. Rather, minor updates, such as refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet, can refresh 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 displeasing to the sight, even small renovations can cause higher jumps in value. Try covering old, worn tile tub and shower surrounds with a new fiberglass overlay. Put a new vanity and mirror, or contemplate painting the room a fresh, light color. Replace worn vinyl flooring with tile for an even outstanding upgrade. The long-term benefits of using tile are even better since tile tends to last for decades without needing replacement and has a far more upper-class feel than laminate flooring, while at the same time, the price tag isn’t that much higher.

Small Updates: As you prepare your rental property improvements, don’t miss out on the small upgrades that can make a substantial difference. By way of example, simply replacing outdated light fixtures in strategic areas of the home can make the entire property look better. Additionally, adding appealing outdoor lighting, painting the front door a great new color, or replacing worn-out window blinds can render 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 financially manageable while consequently 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 instantaneously!

Planning well the right property improvements and upgrades is really important to your investment’s long-term rental success. By devising and putting these and other home improvements into your Exeter rental property’s operating budget, you can ascertain that your property stays competitive and continues to realize significant increases in resale value.

 

Would you like to know more information about how to put together a rental property that both renters and buyers will intend to have? Give Real Property Management Seacoast New Hampshire a call at 603-343-2202 today. We can help you evaluate your property’s current condition and provide suggestions for cost-efficient approaches to make sure that your property stays competitive in rental and resale markets.

 

Originally published: March 12, 2021

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