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. This could apply to your home as well.
Table of Contents
1. Windows (If You Are Flipping A House)
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. We have rarely replaced windows in rental houses.
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 and should help improve home value if you are moving from old aluminum windows.
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.
2. Renovate The Kitchen
This upgrade is a must if you are flipping your property.
If you plan to rent it out, 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 usually results 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.
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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.
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 and increase the value of your property. Carpets give your home a luxurious feel, and many tenants like that.
We’ve tried to avoid carpet and transition to vinyl plank flooring. Tenants tend to destroy carpet, and it’s harder to destroy vinyl flooring. This saves us a few thousand dollars every few years, for each house.
6. Maximize Your Space, By Division
Investing in real estate can be a great way to increase your wealth, but it’s important to ensure you’re getting the most out of your investment.
One way to do this is by dividing space to maximize the value of your property. Room dividers are an effective and affordable way to divide a room into two or more distinct areas, creating additional usable space.
This can be especially beneficial for rental properties. It allows you to create separate living spaces within one unit, such as a bedroom and living room, or even two bedrooms.
By dividing space in this way, you can increase the number of tenants occupying the property at once, leading to higher rental income.
Having multiple rooms within one unit may also allow you to charge a higher rent than if there were only one large room. Furthermore, dividing space can help make a property more attractive and appealing to potential tenants.
When considering how best to divide space in an investment property, it’s important to consider both practicality and aesthetics. There are many ways to divide a room without major renovations or construction work.
For example, installing curtains or screens between two areas can provide privacy while still allowing light and air flow between them.
Alternatively, hanging fabric-covered room dividers is another easy way to create separate spaces without breaking the bank.
7. Replace The Doors
People first look at the door 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.
Replacing old wooden doors with newer ones will make your property look and feel more modern. 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.
We have learned over the years to use slab doors. You can paint them much quicker, and for some reason, there tends to be less damage to them. Then when it’s time to sell the house, upgrade to six-panel doors.
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.
Painting your investment property is a great way to increase its value without breaking the bank. A fresh coat of paint can make a huge difference in the look and feel of a property, and it’s one of the most cost-effective ways to boost its value.
Painting is relatively inexpensive compared to other renovations and can provide an impressive return on investment (ROI).
Quality mid-grade paint will last longer and offer better protection than cheaper options, so investing in good quality materials is important. Higher-quality paints also save you time because you do not need to do as many coats.
When choosing colors for your rental property, opt for neutral tones that will appeal to potential tenants. Eggshell or satin finishes are recommended as they are easier to clean and maintain.
Accent walls or whitewashing brick fireplaces are also great ways to add visual interest without going overboard with color.
Pro-Tip: Take the outlet covers off to paint the rooms. Put them in a dishwasher to clean them. Then after the paint has dried, replace the outlet covers. They’ll look new.
If you don’t like painting, then hiring professional painting contractor is the key to achieving exceptional results. Their expertise and attention to detail will transform your home, providing a fresh and vibrant look that reflects your personal style.
9. Replace The Guttering
As a landlord, for several decades, we often receive one call about water in the basement. My first question is, “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.
10. Improve The Landscaping
Improving the landscaping of an investment property can be a great way to increase its value. Landscaping can create a more inviting outdoor space, making it more attractive to potential tenants or buyers.
It can also help to improve curb appeal, which is important for any real estate investment.
Well-maintained landscaping can add to the property’s overall aesthetic and make it stand out from other properties in the area.
When considering landscaping options for an investment property, it’s important to choose low-maintenance solutions that won’t require too much upkeep or cost too much money.
Options like dogwood bush, inkberry bush and marsh marigolds are all good choices as they are easy to maintain and don’t require a lot of water.
Xeriscaping is becoming increasingly popular as it requires minimal maintenance and uses native plants adapted to local weather conditions.
It’s also important to consider the dos and don’ts when landscaping rental properties. For example, while trees and shrubs may look nice, they should be chosen carefully as some varieties can grow quickly and become difficult to manage over time.
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.
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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.