Ultimately, every rental property owner wants to maximize their profit. But in order to do so, there are several things that every rental property owner has to do to make this goal a reality. Investing in your first rental property can be intimidating at times, but it’s important to be open to renovations that will benefit your property.
Exploring funding options for your rental property and evaluating where improvements can be made, you can get a better sense of which renovations will be the most beneficial. Although almost every estate is unique, it’s important to consider a variety of upgrades that will generate the best resale value for your unique property.
Things to Consider
Conduct A Home Evaluation or Appraisal
The first step when considering the most optimal renovations is to accurately evaluate your property. Conduct a thorough walkthrough to determine what areas need the most revival. A home appraisal may also help to analyze the potential market value, along with identifying which parts of your property are the most run down. From there, you’ll get a better sense of the what upgrades will provide the most resale value.
Analyze Ways To Pay
Home renovations can be pricey, but by keeping the long-term value in mind, you can get the best return on your investment. Fortunately, there are a variety of ways to pay for these projects. Two reliable funding options include finding the best credit card or personal loan. In your efforts, perform additional research to find the lowest interest rates possible.
Other ways to fund your renovations include using a home remodel loan or a home equity loan. A home remodel loan is an unsecured personal loan that you can receive from a bank or credit union. On the other hand, a home equity loan uses your current home as funding provided in a lump sum. This option often has lower interest rates than a credit card or personal loan. By analyzing the pros and cons of each of these funding options, you will find peace of mind when deciding which projects will generate the best returns. Below are some renovations that will help increase the value of your home one way or another.
What Generates The Best Returns?
A Kitchen Remodel
Conducting a minor kitchen renovation is one of the best ways to not only revamp your property, but to also add a personalized touch to the home. This type of remodel is quite popular amongst homeowners and rental property owners alike. Since the kitchen space is an essential part of your property, it is typically a focus for prospective buyers. By upgrading your kitchen space, you can recoup up to 70% of the cost of the renovation.
Some of these potential updates include: switching to modern cabinets, changing the flooring, and implementing a new kitchen island. Modern kitchen cabinets can be aesthetically pleasing, while also providing sufficient functionality. Changing the floor will also make your kitchen space more attractive and functional to walk through. Adding a new kitchen island in quartz or granite is a reliable way to add luxury to your property; these attractive patterns not only appeal to the eye but also provide a durable surface for cooking and other kitchen activities.
Vinyl Siding
Adding vinyl siding to your rental property can provide a variety of advantages. However, the main reason vinyl siding is a valuable option for homeowners is because it’s cost effective. For its lower price point, vinyl siding is surprisingly durable, which is why it’s become so popular. In terms of returns, you can recoup practically up to 68% back for the installation.
Additional benefits include increased home exterior protection, enhanced curb appeal, and reduced heating and cooling costs. Also, this material is practically maintenance free and eco-friendly. There is a large selection of styles, colors, and trims when it comes to implementing vinyl siding. The installation process is also relatively easy, however, if you do want to ensure best practice, try hiring a siding contractor to professionally install it for a fee.
Garage Door Replacement
When it comes to curb appeal, replacing your garage is one of the most popular ways to instantly improve your rental property. Not only does this provide reliable functionality when opening and closing your garage, but you can also use this space for insulation and storage purposes. Be mindful of garage door materials. Some popular features include steel, wood and plastic. Consider garage spring systems and insulation effectiveness when deciding which door is best. For the smoothest and safest installation, hiring a garage door installer is best practice.
This specific property renovation will retain a higher value than the previous two updates. At the end of the day, you could recoup approximately 94% of your initial investment. This project initially costs less, and you will retain practically everything you spent in the first place while improving the value of your real estate asset.
Although choosing the right renovations for your property is subjective, it’s equally important to consider which ones will provide the best return financially. Be proactive and decide which upgrades are the most ideal for your rental property. Using these general renovations tips will help increase the value of your home one way or another.
Interested in more advice for Rental Property Renovations?
Contact Sunset Properties at info@sunsetproperties.com for more information on what your property needs! Looking to sell? Contact John 251-979-4100
