When it comes to renovating a rental property, it’s easy to splash out all kinds of excess money on the property without being sure that you will get the money back when you go to the rent the unit out. This is why it’s important to have a renovation budget for the rental unit(s) that you are looking to remodel. You want to consider a balance of both ensuring that the upgrades are tasteful and modern and will appeal to the renter group that you are targeting but you must also do it methodically and on a budget to ensure that you are not spending more than you can get back out of the unit in the future.
The following are 6 great tips to consider when renovating a rental unit to ensure that you get your money back and that you don’t overspend making the unit feel both modern and livable as possible:
- Determine what you are willing to spend on the renovation and set the maximum amount you are willing to spend on the project.
- Consider where you might be able to get “cheaper” alternatives that still provide the same effect. For example, consider alternatives to granite countertops such as such as marble or consider using laminate flooring rather than its more expensive counterpart of wood flooring.
- Consider what tasks you might be able to do yourself to help save money and which ones you don’t want to skimp on hiring experts to help you do.
- Consider possibly renovating one room at a time to keep the costs in check and the project from taking too long so that your rental unit is not sitting empty and losing won’t lose too much money at one time.
- Consider energy upgrades that are green and energy efficient so that they are able to save money on utilities and other costs associated with the use of energy in their unit.
- Consider outdoor maintenance and be sure to keep the area appealing and looking nice. The outside of the home is what the prospective tenant will see first, so make that first impressions count.
These are just 6 great tips and ideas to keep in mind when you are renovating a rental property for potential tenants. In the end, you want the space to look modern and livable yet you want to be sure that you are not spending more money than you will be able to get back from the tenant renting the property.
When you are renovating your rental properties be sure to stick to your budget so that you can get your money back in the amount that you are able to ask for the monthly rent. While you want to upgrade the rental to make it modern and livable you also want durability to play a role as the more durable the materials you use are the less you will have to do when renovating in the future. That balance should create a clear idea of what your renovation budget is to ensure that you are both able to make your money go far as possible for you and that you are able to get your rental back on the market soon as possible.