Looking for ways to increase the value of your rental property to increase monthly earnings? Renovations are great way to achieve this goal. While renovations can be costly and may require that your property be empty for a period of time, in the long run you will certainly recoup your costs. And, should you decide to sell your property in the future, these renovations will increase the value of your home on the market.
Here are the best renovations to increase the value of your property:
Modernise the kitchen.
As the heart of the home, the kitchen can be a selling (or breaking) point for many potential renters. Renters may overlook other flaws if the property offers up a spacious kitchen with all the modern conveniences. Many people spend more of their waking hours in the kitchen than they do in any other room of the house, so efforts made here are well appreciated and valued. On the other hand, a cramped, dark, or dated kitchen can greatly decrease the value of your property. According to data gathered in the United States and analysed in Remodeling’s 2013 Cost vs. Value Report, 68 – 75% of a kitchen remodel will be recouped if the home is sold.
Update an existing bathroom.
Like the kitchen, a shabby, dated bathroom can lower the value of your rental property. At a certain point, it becomes impossible to make the floors sparkle or properly clean an older shower or skin. When this happens, consider remodelling the bathroom to give this important space a modern and clean feel.
Create a second bathroom.
This can be a costly venture, but if you’re able to create a second bathroom from a laundry room or other unused space, your property will be better able to accommodate a family – and you will be able to charge for a 2 bathroom home.
Build a deck.
Come summer, our favourite place to spend time is in the backyard or on the deck. Decks are a major draw for most people. When touring the property, many tenants will make a beeline for the deck once they have gotten a glimpse of it. Thoughts of summer BBQs, morning coffees, and leisurely evenings spent on the deck can turn a “maybe” into a “yes.” And of course, this outdoor living space definitely lets you raise the price tag on the property!
Even smaller changes can make a big difference.
Don’t have the budget for extensive renovations? Even small changes can make a big difference in the impression that your house makes on prospective tenants. Here are some less costly ways to increase the value:
Paint the walls. Cover up reminders of past tenants by giving the walls a fresh coat of paint. Consider deviating from the standard flatting white. Try a pale grey or cream colour to give the space a warmer, less sterile feel.
Update kitchen cabinetry. Essentially a facelift for the kitchen, new cabinets can make the kitchen feel more modern, open, and clean.
Install new carpeting. Few things are more unappealing than thread-bare, faded, stained, or damaged carpeting. Opt for carpeting that is durable and in a colour that easily conceals stains.
Install air condition or a heat pump. Control over the indoor environment adds value to your property. Properties with climate control features can easily charge tenants $20 or more per week.
Outdoor landscaping. The addition of some hedges or flowers at the entrance can really make a property more appealing.
What renovations do you think have helped improve your rental property? We’d love to hear from you in the comments area below!