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Which Renovations Give You the Best Return On Investment?

Contemporary Blue Kitchen with Renovated Windows, Cabinets, and Countertops

If you are quite like a lot of investors, you already ascertain that improving your Magnolia rental properties is an important approach to successfully getting quality tenants. At the same time, regular property improvements are also the key to adding value to your investment. The most beneficial thing to know concerning home improvements is that some add more value to a property than others. For Magnolia property managers, discovering which improvements give the best return on investment is essential to your business’s long-term success and profitability. Here we touch on some of the top renovations that industry experts say will put forward the best return for the cost.

Garage Door: If your rental property has a garage, one of the easiest and most cost-effective ways to add value and increase curb appeal is to replace or upgrade the garage door. It’s not even necessary to spend a fortune on your new garage door to get this benefit, either. Even a normal-looking garage door of good quality will most often extend a high return on your investment and significantly improve the look of your property. Pro tip: Pair your new garage door with a smart opener to add even more tenant appeal.

Stone Veneers: Speaking of curb appeal, updating your rental home’s exterior is, in particular, on the top of the list of not-so-expensive updates that offer big returns. As a general rule, the upgrade that will add the most value to your property is manufactured stone veneers. According to a 2021 Bankrate report, replacing vinyl siding with stone veneer around an entryway, pillars, or the lower third of your property’s front-facing exterior walls practically helped sellers to recoup almost all of the cost of installing it. Determining this upgrade before you move to sell may hold even maximum profit potential, making your rental home more marketable and allowing you to charge a higher monthly rent.

Kitchen Remodel: For your rental property’s interior, the chief upgrade that will highly maximize your property’s value is remodeling the kitchen. People love their kitchens, and tenants are no exception! In a recently done nationwide survey, quite a lot of home sellers are quoted that kitchen updates offered the best return on investment (ROI) for the money spent. However, that doesn’t mean you need to completely re-do the entire kitchen to see your property values rise higher. Rather, minor updates, such as refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet, can remake your property’s interior without breaking your budget.

Updated Bathrooms: The same is true for bathrooms, where unless your property’s facilities are unusually dated or looking really bad, even small renovations can create significant jumps in value. Think seriously about covering old, worn tile tub and shower surrounds with a new fiberglass overlay. Incorporate a new vanity and mirror, or think about painting the room a fresh, light color. Replace worn vinyl flooring with tile for an even larger upgrade. The long-term benefits of using tile are even greater since tile tends to last for decades without needing replacement and has a much more impressive feel than laminate flooring, granting that the price tag isn’t that much higher.

Small Updates: As you get ready for your rental property improvements, don’t pass up the small upgrades that can make a critical difference. For instance, simply replacing outdated light fixtures in strategic areas of the home can make the entire property look better. Particularly, adding several appealing outdoor lighting, painting the front door a stunning new color, or replacing worn-out window blinds can all guarantee high returns relative to the cost. The same goes for light switches and outlet covers, cabinet hardware, door knobs, and other small details. These small updates are indeed affordable while vitally improving the look and feel of your rental property. Pro tip: Upgrade to a smart thermostat, smart locks, and other tech-friendly features to attract tenants instantly!

Coordinating excellent and correct property improvements and upgrades is significant to your investment’s long-term rental success. By devising and putting these and other home improvements into your Magnolia rental property’s operating budget, you can make sure that your property stays competitive and continues to get significant increases in resale value.

 

Would you be open to hearing more information about how to prepare a rental property that both renters and buyers will care about? Give Real Property Management Republic a call at 281-362-5001 today. We certainly can help you evaluate your property’s current condition and impart cost-saving practices to ascertain that your property stays competitive in rental and resale markets.

 

Originally published: March 12, 2021

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