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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 exactly like a large number of investors, you already know very well that improving your South Jordan rental properties is a crucial way for attracting quality tenants. At the same time, regular property improvements are also the key to adding value to your investment. The necessary thing to know on the subject of home improvements is that some add more value to a property than others. For South Jordan property managers, assimilating which improvements bestow the best return on investment is salient to your business’s long-term success and profitability. Here are a number of the top renovations that industry experts say will bestow 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 needed to go too expensive on your new garage door to get this benefit, either. Even an ordinary garage door of good quality will commonly give 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 increase even more tenant drawing power.

Stone Veneers: Speaking of curb appeal, updating your rental home’s exterior is second on the top of the list of rather low-priced updates that offer big returns. In most situations, 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 encouraged sellers to recoup so much of the cost of installing it. Picking out this upgrade before you arrange to sell may hold even more 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 main upgrade that will most likely maximize your property’s value is remodeling the kitchen. People love their kitchens, and tenants are no exception! In a new nationwide survey, a large number of home sellers mentioned that kitchen updates offered the best return on investment (ROI) for the money spent. That being said, that doesn’t denote you need to certainly re-do the entire kitchen to certainly see your property values arise. Rather, minor updates, such as refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet, can renew 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 really ugly, even small renovations can create amazing jumps in value. Take into account covering old, worn tile tub and shower surrounds with a new fiberglass overlay. Position a new vanity and mirror, or take into account painting the room a fresh, light color. Replace worn vinyl flooring with tile for an even higher upgrade. The long-term benefits of using tile are even greater since tile tends to last for decades without needing replacement and has a lot more luxurious feel than laminate flooring, while the price tag isn’t that much higher.

Small Updates: As you prepare for your rental property improvements, don’t leave out the small upgrades that can make a large difference. For an instance, simply replacing outdated light fixtures in strategic areas of the home can make the entire property look better. Therefore, adding plenty of appealing outdoor lighting, painting the front door an awesome new color, or replacing worn-out window blinds can actually give 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 affordable while effectively 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 at once!

Arranging the proper property improvements and upgrades is fundamental to your investment’s long-term rental success. By endeavoring to put these and other home improvements into your South Jordan rental property’s operating budget, you can secure that your property stays competitive and continues to obtain great increases in resale value.

 

Are you looking for more information about how to produce a rental property that both renters and buyers will want? Give Real Property Management Wasatch a call at 801-889-1517/435-244-3394 today. We can help you evaluate your property’s current condition and propose cost-efficient processes to guarantee that your property stays competitive in rental and resale markets.

Originally published: March 12, 2021

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