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If you are in between tenants and want to boost the appeal of your rental to fetch higher monthly rent and attract better tenants, remodeling is one of the smartest financial moves you can make to improve your return on investment and rental property value.
Smart home renovations that add new high-quality and functional features to your rental are more likely to increase the property’s rental value, helping to recoup the costs faster. The following renovation projects can not only boost your property’s value but will also create a home that entices renters.
Chic entryways
First impressions go a long way. You’ll want to hook prospective renters as they enter your property by presenting them with an inviting and unforgettable entryway. Get rid of your old door, and replace it with a bold, robust door that screams modern sophistication and perfectly complements your exterior.
Mix sturdy materials, like steel or aluminum, with a raw, edgy design to give your front door a chic, industrial look. Industrial-style front doors are versatile and fit seamlessly into various architectural styles, from contemporary to rustic. These doors are tough and can withstand almost anything, making them perfect for both urban jungles and rural retreats. With the right secure locks, you’ll have peace of mind knowing your home’s entryway is as safe as it is stylish.
Practical upgrades
You can never go wrong with practical upgrades in traditional spaces, such as kitchens and bathrooms that are both visually appealing and also add functionality. The kitchen is the heart of a home, which is why it is also one of the main focal points that can make it or break it when selling to potential renters.
You can start small by adding new cabinet doors or hardware and replacing water or light fixtures and appliances. But if you’re financially comfortable, invest in bigger projects like replacing countertops, sinks and flooring.
Bathroom remodeling has many benefits, from creating a safer and more energy-efficient space to exuding healthfulness and tranquility through amenities for beauty and relaxation.
Start with minor changes, like replacing a shower head with a rain shower and creating more ambient lighting. Adding safety features, like grab bars, shower seats, and anti-slip flooring, is also smart and can lessen your liability from accidents.
If your budget permits, make bigger renovations by swapping out the flooring, tiles and cabinetry. Adding an antique tub or upgrading your existing tub to one that has spa features will contribute to a more luxurious atmosphere.
Backyard experiences
According to homeguide, a well-maintained yard can increase a property’s perceived value by 5 percent to 15 percent, giving a rental home higher long-term returns. Upgrading your yard doesn’t need to break the bank. Cut down on the hassle and costs of maintaining landscaping by installing an automatic watering system and planting hardy native trees, shrubs and flowers that can handle the climate with minimal care.
Adding a garden shed also provides storage functionality, making your tenants’ lives easier and giving them a good reason to keep the garden looking tip-top.
If you want to go bigger, consider adding an above-ground hot tub to promote luxury, relaxation and improved health. Building a deck provides the biggest facelift to a yard, and it also increases the value of your property with an estimated 44 percent return on investment. Decks maximize the space of a property and provide unique sources of outdoor entertainment and personal enjoyment, especially if they include comfortable outdoor furniture and a barbeque station.
Luxurious touches
It may be hard to justify investing in luxury items for a property you aren’t even living in. But for some landlords, a rental property also doubles as a family vacation home or represents a place they’d like to eventually sell at a profit, gift to a child or use as a retirement home. In those cases, it may be worthwhile to add some luxurious touches that will increase its rental value while also enhancing its long-term resale or personal value.
Renovations that add luxury to a property vary in size and scope. Fireplaces transform plain living areas into warm and homely retreats, providing a highly sought-after amenity. Adding a sauna to your property can be a game-changer, not just for a tenant’s enjoyment and well-being but also for your bottom line when it comes time to cash in on your investment.
Renters and potential buyers are increasingly interested in homes with wellness amenities, and regular use of saunas have been known to improve cardiovascular and respiratory health, reduce inflammation, and help with conditions like arthritis and chronic pain.
Eco-friendly modernization
Energy-efficient homes are attractive to tenants because less energy use translates to lower utility bills. You can start small by sealing any cracks around doors and windows, upgrading electrical sockets and light switches, installing smart thermostats, and replacing inefficient appliances with eco-friendly options.
By installing water-efficient fixtures, such as low-flow faucets and showerheads and dual-flush toilets, you can seriously cut down water consumption without decreasing the quality of life for tenants, translating into substantial savings on water bills.
Going green is the trend, and a bigger investment in solar panels can pay off in several ways. Solar panels and inverters offer a renewable energy source that results in energy independence, which many renters and homebuyers find appealing.
Solar panels can lower electricity bills significantly, sometimes all the way to zero. In some cases, you may even get a refund from your electric provider. Depending on the state where your rental property is, you could also qualify for financial incentives from the government in the form of tax credits and rebates that offset the cost of installing solar panels and inverters.
Security enhancements
Security is not just a feature but a fundamental need for tenants, contributing significantly to their peace of mind and willingness to rent long-term. Installing certain gadgets around the exterior and in communal areas helps tenants feel safer and more confident about their personal safety and the security of their belongings. They also serve to protect your property from damage that can be inflicted by criminal activity.
Security cameras that operate around the clock provide vigilance, recording all activity and serving as a deterrent to potential intruders. Likewise, motion sensor lights automatically illuminate when they detect movement, welcoming residents as they return home and deterring potential intruders by casting a spotlight on unexpected activity.
Smart locks allow tenants to unlock their doors via smartphone apps or codes, bringing an unprecedented level of convenience and control and preventing lockouts that result in emergency calls to landlords.
If you want to get really fancy, biometric security systems use unique physical characteristics, such as fingerprints or facial recognition, to control access.
Finally, installing emergency response systems provides tenants with a direct line to help and a swift response by emergency services by simply pressing a button. Such systems not only enhance tenant safety but also demonstrate a landlord’s commitment to the well-being of their residents, making properties more attractive to prospective renters.
Ryan Barone is the co-founder and CEO of RentRedi, an award-winning rental management software that transforms the way landlords and tenants manage their renting experience.