Purchasing a property that you intend to rent to someone else and use as a stream of income can be a great way to build your investment portfolio and make some money in an almost passive way. However, to really maximize this investment opportunity and the money that you can make from doing this, you may want to make some renovations that don’t cost you a lot but that make the people using your property feel like it’s worth it to have.
To help you know just how you should be spending your money in this way, here are three renovation projects to do in an investment property that will allow you to charge more for a monthly lease.
Do A Quick Kitchen Update
In most cases, doing large renovations that require a lot of time and money usually won’t be a great return on your investment. Unless you really can’t rent out your property to someone without making those big changes, it’s usually going to be best to do something that can be done quickly and inexpensively but that makes a big impact when you’re shown a before and after picture.
One of the best areas to focus on this type of renovation is in the kitchen. For most people, having a light, modern, beautiful kitchen is a big draw for a rental home. And even if you’ve bought a property that doesn’t have this yet, you can make a few updates that can make a big difference.
Things as small as changing the knobs and pulls on the drawers and cupboards, putting in a new faucet, painting the cabinets, and putting in a new, expensive backsplash can prove to be totally worth it. And when potential tenants see these things, they’ll be willing to pay more for it.
Make The Place More Energy Efficient
Another thing that you can do to help make people want to pay more for your rental property is to make updates that turn the unit more energy efficient. From doing regular maintenance on your HVAC system to installing new energy efficient appliances, having a more energy efficient property will make people willing to pay more on their lease.
If people feel like they will be saving money in other ways on a monthly basis, or even just wasting less on their energy usage, this could be a renovation project that could be well worth it for everyone.
Replace The Flooring
The flooring of a home is one area that gets constant usage. Because of this, it could use replacing at a much quicker interval than most people want to accept. Especially if you’re going from one renter to another, replacing the flooring in between leases could be a great way to make the property look fresh and new. And when someone feels impressed by how a property looks, they’re much more willing to pay a higher price for it.
If you have a rental property that you’re wanting to do renovations on that will help you increase the rent you charge, consider implementing the tips mentioned above to help you know where to focus your efforts.
