As real estate investors, we’re always looking for ways to increase the value in our rental properties. After all, we have a need to maximize the value in what we have before we acquire more properties. Increasing value, maximizing potential—all of that language—can bring a lot of images to mind—and some of those images can be expensive!
Thinking about big renovations, new appliances, granite countertops, major overhauls…
But does it really have to be that way?
The big thing to remember about increasing your property values is that you can do it piecemeal. You can take little steps, strategically, and over time. Ultimately, they will culminate in the most profitable version of your property—without emptying your pockets.
These are just some ways you can boost your rental property values: either in the eyes of prospective buyers and tenants where they feel and see extra value, or in putting real, actual ROI back in your pocket.
8 Rental Property Renovations to Enhance Your Value Right Now
1) Make Another Bedroom
If your property has one or two bedrooms, one of the best things you can do for the property is to add another one. Now, when it comes down to actually adding that extra bedroom? It becomes a little tricky. For some properties, it might be as simple as defining the space. (In other words, when you show your house, don’t have a ‘home office.’ Make it bedroom.)
It could mean finishing a room, adding a few more square feet to a too-small space, or another small renovations to add a closet or windows. It could mean a whole new addition to the property, which is considerably more expensive.
Still, an additional bedroom for a one or two-bedroom property can significantly improve your property values.
2) Create An Open Concept
Of all the trends in recent years, open concept living is one of the most persistent. People enjoy a living space that is open, bright, and flowing from one space to the other, rather than walled off. If you have a few too many walls in a dated property, see what non-loading bearing walls you can eliminate to create a more open concept for your tenants. It will increase the appeal of your property, bring it into the modern age, and increase your values.
Open concept is a selling point and it helps tremendously when showing the property. Remember: a home that feels larger is almost as good as actually adding physical square footage to the property.
3) Audit Yourself
Every real estate investor can stand to examine their expenses more often. Be your own auditor! Take a look at what your property costs you every month and then examine not only what you may be able to reduce, but why things are costing you what they are.
Maybe your water bill is too high and you can introduce water-saving fixtures and updated plumbing to help. Maybe you can install more energy-efficient appliances and windows.
We can guarantee there are savings waiting for you in those monthly costs that you’ve just accepted without a second thought.
4) Add That Half Bath
Like bedrooms, there’s value in another bathroom. Plumbing, however, can be costly to install. If you’re looking to save, you’ll want to install a half-bath where fixtures and connections already exist. Don’t go far off the grid! Work with the structures that exist if you want to save money. An extra bathroom, even if it’s just a well-placed powder room, can really add to your value—but only if you’re smart about placement and don’t spend too much on the renovation.
5) Create Storage Solutions
For tenants, storage is always crucial. A lot of older properties tend to fail in this department. Closets are cramped and attics are, well. They’re creepy. If your investment property is lacking in good storage, create smart solutions for your tenants—especially solutions that are attractive and easy-to-use.
Think about finishing the attic, installing built-ins, or increasing the size of your closets.
6) Love Your Lawn
Too many times, owners looking for value focus too heavily on the inside of their properties and they neglect the outside. Many times, the outside of the property nary gets more than a fresh coat of paint. Which is great...but not all there is! Curb appeal is not to be underestimated. Plant some shrubs. Get some flowerbeds in order. Make sure sidewalks and driveways are clean and without cracks.
You exterior presentation really matters.
7) Paint Timeless But On Trend
Paint, paint, paint. There is power in a fresh coat of paint and in the right coat of paint. Neutrals, clean, inviting colors that are on trend (check out things like Pantone’s Color of the Year and other interior design trends), and colors that makes your property bright and new are ideal. Consult a professional is you question your ability to make the right choice. But paint is one of the easiest and most cost-effective ways to improve your property values.
8) Value Regular Maintenance
You want to increase your values? Protect your investments. Regular, ongoing maintenance is the key to a property that stands the test of time. Solve issues before they’re issues. Fix problems the right way first. And beyond that, remember to clean! Between tenants, hire professional to really deep clean your property. It’s the little details that add up to great value.
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