Real estate is a big deal and has remained a big part of the economy for many years. However, investing in property is not for everyone. We see more rental properties because these projects are more attractive to investors.
If you are an investment property owner, you may want to consider the following upgrades. The could apply to your home as well.
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Times have changed, and the quality of windows in your property may be less than desirable. It is easy to overlook the importance of windows unless you are the one paying the utilities.
Luckily, changing your old window for a new one does not require much work on your part and should help improve home value. The first step you’ll want to take will be to find a window replacement company recommended by your friends or past clients who have had their windows replaced.
We also recommend getting several quotes because window prices have a high markup and their prices vary.
If your investment property is a rental property and not a fixer upper, then windows can probably be something you can defer. Its hard to get an increase in rent high enough to justify the upgrade.
2. Renovate The Kitchen
This upgrade is a must if you are flipping your property.
If you plan to rent it out then it depends on how your kitchen looks relative to other homes tenants are looking to rent. Depending on your neighborhood, potential tenants may be wanting new and upgraded appliances, cabinets, and counter tops.
You should strive to keep up with your competitors in the region. A new kitchen will usually result in a higher selling price when you are ready to sell your property. You will have to spend a considerable amount of money on this upgrade, but it will be worth every penny.
3. Upgrade The Security System
As a property owner, you want your tenants to feel safe, and having a good security system can help achieve this. You should consider innovative property management measures like installing package lockers and other smart security features.
Depending on the area, investing in a modern security system may pay off in the future because you won’t have to worry about paying for repairs or replacing broken locks or window devices. A new fence is also an aesthetically pleasing security upgrade.
4. Bathroom Fixtures
The bathroom is another key area potential tenants look for when considering a property to rent. Updating the bathroom space with new hardware, plumbing, and fixtures will attract tenants who want a luxurious bathroom space.
Also, install a heating system to keep the bathroom warm in winter and cool in summer.
5. Upgrade The Floor
Consider reflooring your rental property to add warmth and comfort to it. It is a great home improvement project because inexpensive materials like tiles, marble, and cork are available even on a small budget.
With new carpets and flooring, you’ll be able to attract more tenants who want a higher quality space to live in, as well as increase the value of your property itself. Carpets give your home a luxurious feel, and many tenants like that.
6. Upgraded Internet
We live in the digital era, so you will want to consider upgrading your internet connection. Whether it be broadband or fiber optic, you should consider how it will benefit your property as you look to invest in it. By having a fast internet connection, you’ll have the ability to attract more tenants because they can keep up with the latest music, movies, and TV shows.
Also, you will be able to interact with your tenants on social media and make sure that they are satisfied with their apartments.
7. Replace The Doors
The door is the first thing people look at when renting a property because it is the gateway to a new life. If your doors are outdated and outdated-looking, you will have difficulties attracting quality tenants.
By replacing old wooden doors with newer ones, your property will look and feel more modern than ever before. The best part is that you can replace them on a budget with new composite options that are less expensive than wood but still attractive.
Painting is the single best upgrade. It’s critical to paint your property. A new coat of paint hides all the imperfections (and smells) and makes the house feel new again.
Pro-Tip: Take the outlet covers off to paint the rooms. Put them in a dishwasher to clean them. Then after paint has dried replace the outlet covers. They’ll look new.
9. Replace The Guttering
As a landlord, for several decades one call we receive often is about water in the basement. My first question is always, “when was the last time you cleaned your gutters?” So often the gutters are just clogged. If water can’t drain through the downspout than it backs up.
Of course, sometimes the gutters are cleaned, but they are old aluminum guttering. In that case, consider whether you want to spend on fixing the gutters, or if it is time to replace them.
Be sure to consider these options as you consider upgrading your investment properties. The biggest thing to pay attention to is what your competition is doing. That way you can keep your rent competitive to theirs.
Greg is a Chartered Financial Analyst (CFA) with 22+ years experience in Financial Services. He has held numerous FINRA Securities licenses (series 7, 63, 65, and 66), and is an expert on Investment Products and Financial Planning. Greg has 22+ years experience as a real estate investor and degrees in Psychology and Philosophy.
Greg has been quoted/interviewed in Yahoo Money, Yahoo Finance, USA Today, Authority Magazine, Realtor.com, Business Insider, and others.
Greg is an avid runner, and the father to identical twin girls and their awesome brother. His love of budgeting and his kids led him to join The Great Resignation in 2021.
Disclaimer: Any Financial Tips on ChaChingQueen are general and informational. Speak with a professional about your specific situation.