The best question you can ask yourself when upgrading a rental property is will it make a big impact both visually & financially? Here are a few examples of what you can do that could maximize your ROI.
Lighting
Lighting can make a big impact in a space and is usually pretty inexpensive. To draw in perspective renters install a new fixture that complements the space, if you need some idea’s check out our article on Dining Room Lighting Under $200. An affordable alternative to recessed lighting is LED light pucks in the same locations as existing lighting. Providing a clean custom lighting look without the high electrical and drywall put back costs.
Flooring
A huge plus for renters is hardwood flooring but it can be a rather expensive investment. Although carpet may be cheaper upfront, owners will have to replace it with each tenant turnover and aesthetically turn away potential renters. The best of both worlds is wood vinyl planks. It’s an affordable alternative to hardwood floors and gives the same upscale vibe and warmth to the unit. It’s also easy to clean, resistant to moisture and practically scratch-proof. Although it’s a higher upfront cost than carpet, its long-term durability will exceed the cost-savings of carpet. Consider laying the laminate in a pattern like chevron to add character to a space, translating to better tenant appeal. This Wall Street Journal Design Trends of 2022 article confirms wood laid patterns are in.
Appliances
Upgrading your appliances can be a great incentive for renters. Whether the landlord or tenant is paying the electric bill energy-star appliances can reduce the bill without sacrificing quality. When shopping for new appliances look for the blue energy-star sticker. Newer appliances also reduce reoccurring maintenance costs are problems are less likely to arise. Adding a dishwasher can also reduce the water bill while increasing tenant appeal and rent roll, paying for itself in no time.
Washer/ Dryer
Adding a washer & dryer adds a convenience for your tenants and a higher return for you. Apartments with a washer & dryer can allow you to charge more per month; everyone is looking for convenience these days. Tenants filter apartments online by certain features including whether the unit has a washer & dryer, so this improvement also widens your potential tenant pool. These days, in-unit washer & dryer is market, making it almost no longer optional when upgrading your property. If your apartment is not suitable for this upgrade, we strongly recommend pairing back your renovation as a whole to make sure you’re financially prepared to lowering your expected rent to compete in the market or handle a significant slow down in absorption.
Paint
One of the simplest upgrades you can make is putting a fresh coat of paint on the interior and exterior of the property. Paint fades over time and can lead to the place looking dingy, by putting in a little money and effort you can refresh the space again. We would suggest going with something neutral, like an eggshell or taupe, nothing too dark or bright as it can overwhelm the renter. Make sure to use the appropriate sheen for each room. Flat for ceilings; Eggshell for hallways, living rooms & bedrooms; Semi-gloss for bathrooms, kitchens, trims & doors. Pro tip: register the paint color at your local Sherwin Williams or Benjamin Moore for easy recall during future maintenance.
If you want some more tips, check out this articles 10 Rental Property upgrades or this Youtube video: Top 5 Upgrades Multifamily Tenants Want in 2022.