Every property owner wants to increase the value of their rental property. However, when most real estate investors and landlords come to the decision that they want to do so, they usually think they need to invest thousands of dollars in order to get a marginal increase in value.
But if you are an experienced landlord you already know that there are certain improvements you can make to your rental that are incredibly cost-effective and worth doing.
Here are the most cost-effective investments you can make to increase rental revenue.
Façade Insulation
People are no longer impressed by plain outdoor insulation due to the wide availability of insulation technologies that offer a one-time investment that will help you lower your heating costs, thus increasing the overall value of the property.
Siding insulation is a popular type of facade insulation that provides quality thermal, hydro, and noise insulation. Two types of siding are most common, depending on the material used for the insulation: fiber cement and vinyl siding.
While fiber cement hasn’t been as popular in the U.S., it provides a high return on investment, but in case you choose the cheaper option, vinyl siding, you can expect to get a slightly lower return on investment. If you have enough money to spend, fiber cement siding is the better option.
New Window Frames and Blinds
Upgrading the window frames in your home is necessary if you plan to sell or rent out your property — not only from an aesthetic point of view but also from a functional one.
There are three main types of window frames available on the market — timber, uPVC, and aluminum. Replacing old and rotten window frames with new ones is an easy way to reduce a home’s utility bills. This in turn automatically ups the value of the property.
In addition to that, you should put blinds on nearly all of your windows! There are different types, but each of them will more or less provide the necessary thermal insulation of the window.
Some blinds are specifically made to keep the temperature better. High-quality blinds will help keep the heat in during the winter inside, and in the summer will keep the cool temperature in the rooms without allowing heat from the sun in.
Complete Bathroom Renovation
Depending on the size and individual elements of your bathroom, you will have to pay a different amount ranging from a few hundred to a few thousand bucks for a complete bathroom renovation.
This can include replacing the floor and wall tiles, leveling the walls and floor if necessary, replacing the plumbing system, replacing the fittings, etc. Make sure that your preferred plumbing company is competent to do the job at hand. However much it all costs, bathroom renovation is also a necessary investment that will return dividends in the future.
Kitchen Renovation
Generally, the kitchen is the most frequently used room in a home, so it’s only logical that the money you invest in renovating it will be recouped when you sell your property at a higher price.
A major kitchen renovation is the most expensive thing you can do to increase rental revenue and takes the most time, but it is also the most profitable when compared to the other things you can do to increase a property’s value.
The kitchen is one of your biggest trump cards, but it can also be one of your biggest negatives. People love functional kitchens. It’s no longer about how big the room is, but how much work you can get done in it.
There is a growing demand for built-in appliances that don’t take up space, nice furniture that holds a lot of stuff but looks good too. You need to think carefully about whether your kitchen is modern enough.
Another option is to replace only the kitchen appliances. This also turns out to be the more profitable option, as people tend to see newer, more modern kitchen appliances as more desirable.
Renovating the Main Rooms
You should unquestionably invest in nice furniture. Furniture is something very important for every homeowner. You’re unlikely to be able to replace everything, instead make a list of what you own and rank it. Replace the “lowest-rated” furniture.
The more and the nicer the furniture, the less the new property owners will pay after purchasing the home. That way they will be more open to paying more in order to save money further down the line. You won’t believe how much things will change when you put a new custom couch or a nice dinner table in the kitchen.
Even though it turns out that the living room matters the least to the overall value of the property, you can’t renovate your kitchen and bathroom without allocating some of your available funds to renovating the main room in your home as well.
Focus on the furnishings, as working on them allows you to add a creative twist to the overall look of the interior, and use some tricks — such as good old reupholstering of the furniture or the advantages that contrasts give us. Besides, most people prefer to choose the audio and video equipment in their homes themselves.
Taking Things a Step Further…
There are other options as well and these can really boost your investment property rental revenue from standard to Elite. If your budget allows and you are looking to use this rental long-term try these upgrades for top-tier amenities.
Renewable Energy Sources
Renewable energy is increasingly popular. People are more interested in alternatives to traditional electricity. Solar panels are the most affordable, but there are several other options. They add monetary value to a rental property, increase revenue, and minimize electricity costs.
You can use panels to heat water or generate electricity. As well as a good financial return, your property will be less harmful to the environment. The investment itself here is bigger compared to some other options, but it’s beneficial too. There’s no better way to raise the value of our home than by increasing its economy. Buying solar panels can be supported by European energy efficiency programs.
Changing Floor Tiles
Solid wood floors are something that is highly desired by buyers. There is a wide variety of woods that can satisfy every architectural type and taste. You will feel the difference when you step onto a high-quality wooden floor. It doesn’t matter what type of interior design you like! There’s always a wooden floor that goes with your design choices. The big advantage of wood is that it doesn’t absorb as much heat as marble, granite, stone, etc. Naturally however, doing a floor replacement project will mean tearing up the old floor, which can create a lot of mess which is cumbersome to move, looking into hiring specialist dumpsters for concrete waste would be a wise decision if this is a project you’re looking to undertake. Using a refuse container like this will allow you to easily clear out the mess, meaning you can fit the new flooring as soon as possible to get your tenants in and pay rent.
Adding a Pool
Do you live in a house and have a bigger budget to move your property into a higher price bracket? Use your money to play with your yard. Often a well-maintained lawn is not enough to raise the value of a property. Consider building a pool if the region has suitable summers for vacations.
You can use solar heaters to extend the use of the pool during sunny spring days. You could even install a nice tavern for people to enjoy with their friends and family, or you could make a flower garden with a gazebo for the new owners to relax in the afternoon.
In Conclusion
Improving the quality of your rental apartments/homes is a great way to increase their value and thus your passive revenue stream. There are several things that you can do that will recoup their cost in the long term. But there are many other things you can do to increase your chance of succeeding in real estate.
