7 Real Estate Property Improvements That Are Worth the Investment
When you are making improvements to real estate investment properties, it is essential that you establish a realistic budget – and make decisions that make sense! Adding a $100,000 L’Atelier custom kitchen or an Olympic sized swimming pool, for example, is not going to give you the ROI you need. This is especially true if your property is a class B or C.
What does make sense? These seven rental property improvement projects:
- Fresh paint. One of the single best investments you can make in terms of ROI is a good old bucket of paint. A fresh coat of paint will instantly revitalize a property – but make sure you go with a high quality brand. If you have a large need, you may be able to negotiate for a bulk discount. It’s worth it.
- New appliances. Forget the Michelin chef-worthy kitchen or the day spa-inspired bathroom. Simple touches go much further with tenants. Invest in a new washer/dryer set, dishwasher, range, etc. It’s practical, and it’ll update your interiors instantly.
- Insulation. Sure, it’s not a sexy, exciting upgrade, but this one will help you save money and ensure your building is far more energy efficient. If you’re paying for utilities, this is obviously critical; even if your tenants are, however, you can certainly use efficiency as a marketing differentiator.
- Smart landscaping. Curb appeal welcomes prospective tenants and keeps current tenants satisfied that they’re living in a clean, attractive setting. Just don’t go overboard. Easy-to-maintain flower beds or container gardens are perfect. And trim the grass regularly!
- Power washing. This is another easy touch-up project that can yield big results. Washing the grit and grime from your siding, sidewalks, parking lots, fences, and other structures will ensure they look their best. No one wants to live in a grungy, run-down looking atmosphere!
- Minor kitchen and bathroom remodels. As mentioned, extensive – and expensive – remodels do not make financial sense for most real estate investors or landlords. But taking the time to replace appliances, flooring, if necessary, paint, replace cabinet doors, and add a few cozy and convenient touches can pay off significantly.
- Adding a bedroom. If it is legal in your area, why not turn a large one-bedroom into a decent two-bedroom? You’ll appeal to a broader range of people (from singles who want a guest room or office to parents with a child to roomies looking to save a little money). If you go this route, work with a great contractor and check into the legal aspect. For example, you may need to ensure the newly created bedroom has two means of egress, a closet, and ceilings of a certain height.
What improvements are you planning for your real estate investment property? When you go with updates like these, you’ll see a stronger return!