Home improvements can help fast-track your returns on investment. It also draws in more attention from prospective tenants looking to rent your Bellevue properties. The best reason for renovating your units though is that when you decide to sell your property, it can fetch a higher than the average market price provided the market is in an upswing.
You should start by checking your return on investment and assessing if your rental investment is going as planned. Rental renovations are great ways to maximize your rental income. However, before embarking on any, make sure you have sufficient capital to pursue a home improvement project.
Look at your competition and check the market rates. Even if you have upgraded your rental unit, you might still find that the rental demand is low or that your chosen demographics prioritize the rental rate more than added amenities. This needs to be factored in in your rental upgrade decision.
This article will cover the definition of ROI and recommendations on rental improvements to maximize your investment returns.
Defining Return on Investment
Return on investment (ROI) is a measure of gauging your investment’s profitability. The objective is to obtain a good grasp of how the investment is performing.
Top Home Renovation Tips to Increase your Rental Property’s ROI
Property upgrades are vital if you wish to retain long-term tenants and keep them happy. It’s also a strategic method to attract high-caliber tenants. These are some ways to augment your rental’s ROI through renovations:
Consider Flooring Upgrades
A feature that most tenants look for in a rental is good flooring. With frequent use, the flooring can quickly get worn out. As a property owner, you want to make maintenance of your unit’s flooring a priority.
Given the wide range of flooring materials on the market, you have many affordable choices available to you. See the pros and cons of each type of flooring material and make your decision while always considering your renovation budget and ROI.
Upgraded floors generally warrant positive feedback and can justify a higher monthly rent. Durable and attractive flooring also keeps you from spending more in terms of damages down the line.
Focus on Elevating Curb Appeal
Even if your rental property’s structure is functional and sturdy, people can make snap judgments of the rentals based on the external appearance of the home. You can increase your properties curb appeal by:
- Adding more plants
- Placing exterior lighting that can enhance the rental’s appearance at nighttime
- Putting attractive furnishings outdoors such as lounge chairs and side tables
- Building a patio or a neat walkway
- Conducting thoughtful landscaping
Increase Square Footage
Space is always in high demand. If your target market is families, it’s always appreciated to have an extra room such as an attic, basement, or another bedroom. You can tear down a wall or look for ways to create more space in an otherwise unused area of the rental unit.
You can also choose to invest in rental homes that have finished attics or basements so it costs less to renovate. Another idea is building an extension if the lot still has plenty of space. This way you can maximize the square footage.
The focus on sustainability has increased everyone’s desire to choose a more green approach to living. Being energy efficient also increases savings for both property owners and tenants. Aside from taking care of the environment, paying less on utility bills is something everyone can appreciate.
There are affordable ways to integrate more energy-efficient items into your rental property such as:
- Ensuring that gaps are sealed in your doorways and windows to prevent heat and cool air from escaping. This means that the heating and cooling systems can easily maintain the room’s temperature level.
- Increasing insulation in the attic.
- Choosing more energy-efficient appliances.
- Installing solar lights and panels to save on electricity.
- Selecting low-flow toilets to save on water costs.
- Using LED bulbs.
Consider a New Roof
It’s important to prioritize having a solid and durable roof material. If leaks occur then no matter how many interior upgrades you install, it will only waste your money. It also won’t sit well with your tenants to deal with water drips and eventual water damage that can result in mold growth.
Embark on regular preventive maintenance and check the roofing frequently especially before and after the rainy season or a storm. It always pays to be alert.
Hire Professional Property Managers
Several ways exist to grow your income aside from home renovations. You can work with a professional property management company such as T-Square Properties to ensure that your ROI is high.
T-Square Properties is an experienced and established property management firm that’s client-centered. They’ve helped to grow the rental investments around King and Snohomish County.
Improvements and renovations to your rental properties can help you increase your ROI. Be sure to always conduct research and budget accordingly before embarking on a renovation. By following some of these suggested renovations, you’ll be able to maximize return on your investment and keep your tenants happy.
If you want to enjoy greater returns and cost-effective services using advanced technology, contact T-Square Properties today at (425) 485 1800!