Many investors understand that making improvements to their Lexington Park rental properties is necessary to keep them appealing to tenants. Additionally, these upgrades can significantly boost the value of their investment.
Some property enhancements can markedly raise its value. Rental property owners must know which renovations yield the best ROI to ensure long-term success and profitability.
Kitchen
Before renovating your rental property, assess the construction costs relative to the anticipated boost in property value. A recent nationwide survey found that most home sellers believe kitchen updates provide the highest ROI for the money spent.
However, this doesn’t mean you need to fully remodel the kitchen to increase your property values. Rather than a full remodel, minor updates like refacing cabinets, replacing appliances, or installing a new countertop, sink, or faucet can rejuvenate your property’s interior affordably. This lets you make substantial improvements without going over budget.
Bathroom
This same principle applies to bathrooms; even small updates can significantly increase value if your facilities are modern and appealing. Think about updating old, worn tile tub and shower surrounds with a new fiberglass overlay. Install a new vanity and mirror, or think about painting the room in a fresh, light color. Exchange worn vinyl flooring for tile to enhance the upgrade.
Tile’s long-term benefits are even more impressive since it lasts for decades without needing replacement and has a more upscale feel than laminate flooring, with only a slightly higher cost. This gives you confidence that your investment will endure.
Stone Veneers
First impressions play a key role in renting a property. Therefore, why not enhance the exterior of your property? One of the best enhancements you can make is adding manufactured stone veneer to the front of your property. It will not only refresh your property’s look but also offer a high return on investment by making it more attractive to tenants.
A cost vs. value analysis showed that replacing vinyl siding with stone veneer around entryways, pillars, or the lower third of your front exterior helped sellers recoup nearly all installation costs. By upgrading before selling, you can increase profits by making your rental home more appealing and commanding higher rents.
Doors and Windows
Remodeling specific parts of your home can offer the best returns. Garage doors and windows are two examples. If your rental has a garage, consider replacing the garage door when it shows signs of wear.
Though it appears small, a new garage door can significantly boost your property’s value, like stone veneers. Similarly, updating old windows with new vinyl ones improves aesthetics and enhances safety and energy efficiency. These improvements can make a big difference when trying to rent out a vacant property.
Property improvements and upgrades can be both costly and time-consuming. Despite the costs, these upgrades are key to the long-term success of your rental property investment in Lexington Park. Planning and budgeting for regular improvements ensures your rental property stays competitive and increases in value.
To create a rental property that will attract both renters and buyers, call Real Property Management Gold at 301-392-2172 or contact us online. Property managers in Lexington Park can evaluate your property and suggest affordable solutions to keep it competitive.
Originally published: July 8, 2022
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