After several tenant cycles or even after a longtime resident departs, your rental property may not be looking as fresh and appealing as it once did. There are a number of potential areas that may need some TLC or modernization, but how do you decide what improvements are worth making? While there are many differing opinions, here’s a look at three investments that typically provide the best return for rental property owners.
With many people preferring to save money and calories by eating at home, time spent in the kitchen is on the rise. A fresh and inviting kitchen provides your residents with the perfect space for their food preparation. Counter space and cabinet storage are both often at a premium in kitchens, and if you have the space or ability to add or improve either, you’re sure to create a more premium experience, which will result in more interest and potentially a greater willingness to pay a premium price.
Blow out the bathroom
The next greatest area to invest in is the bathroom. As Landlordology points out, tenants aren’t looking necessarily for an executive bathroom experience, but are certainly looking for a clean and fresh looking space. In older homes, especially, bathrooms can be run down, but a bit of work can often bring them a brand new look. Whether a whole renovation from floor to ceiling or even simple fixture replacements to provide a sparkling and shiny new appeal, investing in the washroom will often give you more room to negotiate higher rents or longer lease terms.
Look at the windows
Another great investment is the windows in your rental home or apartment. If you have older windows, making a change to newer styles with double-paned glass or other energy efficient improvements will increase the value of your space while decreasing the utility costs. This can be a great incentive for renters to pursue your property for their next home and, if you pay for heat or air conditioning as part of your rental fee structure, can lead to substantial savings for you.
Regardless of the investment you make, there is a good chance that making improvements will help keep your property rented and limit any vacancy period. Plus, in many situations, you may be able to write off some or even all of your expenses or the depreciation of your work when it comes to filing your taxes. There are also even some incentive programs that you may be eligible for that may help pay for installing energy efficient fixtures, appliances and windows. The Indiana Energy Association offers tips and links to some efficiency programs on its website.