Successful military landlords with thriving rental businesses learn to regularly evaluate their numbers to project their largest profit margin, all while considering the property’s age and rental market changes, among other financial factors. Calculating the best ROI for property updates is an ongoing quandary.
A rental property's amenities entice quality candidates who aren’t satisfied with the basics. Plus, they’re apt to pay more rent if the property is upgraded. They're looking for the same updates and conveniences that home buyers desire. As a general rule, if you want the comfort factor where you live, your tenants probably feel the same way!
Will You Live in the Home Again?
Homeowners must consider whether they ultimately move into the home again, or if there is a reason to sell sooner rather than later. These decisions sometimes determine what property updates are worth investing in.
Adding property updates that the renters will enjoy before your family moves back has pros and cons. The renters will take the brunt of the inconveniences of the improvement work, but they might not keep the new appliances or carpeting in tip-top shape before your arrival. But if the property remains a rental, you'll want to attract the best tenants with in-demand updates. Happy tenants are reliable tenants who are good stewards of your property.
Your budget and whether or not the house remains a rental property will help you decide which of these small or large property updates will pay off. Some relatively easy DIY projects quickly fetch a lot of bang for your buck. Others require professional installation and a long-term vision to recoup your investment.
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Small Updates for Your Rental Property
If your budget is limited, focus on these renter-pleasing upgrades and clean-ups.
1) Front Door and Entry
A new door system provides instant security and curb appeal. Renters look for both, especially if it's low-maintenance. Functional doorbells and a new mailbox are cost-effective and impressive details.
2) Exterior Clean-Up
If the siding is covered in mildew and a rotten old shed takes up space in the backyard, renters will pass by. A thorough cleaning is one of the most impactful projects a homeowner can accomplish with limited funds.
Don’t forget to pay attention to the decking and porch spaces. They require seasonal maintenance to remain attractive.
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3) Landscaping
Homes for rent should feature charming curb appeal, which is one of the most efficient ways to draw renters to the property. Simple details like stationary planters for seasonal displays on the porch are simple to replant each season. Decorative fencing and low-maintenance shrubbery also increase the overall look of the landscape.
4) Overall Décor
Dated paint colors and bare space where architectural details like crown molding or shelving could improve the space are relatively easy to install.
Classic light fixtures (drum shades, pendant drop lights, or simple chandeliers) also provide the best results for the investment dollar.
5) Kitchen Cabinets
There are multiple ways to refresh kitchen cabinets. A complete paint makeover from a professional company ranks highest for quality and longevity, but DIY versions will last a few more years if done well.
Replacing only the cabinet doors and hardware is also a cost-saver, as is removing some cabinet doors completely to provide open shelving.
Photo from iStock.com/brizmaker
Large Updates for Your Rental Property
If you feel like the house you’ve been renting to tenants will become your forever home in the near future, investing in more expensive upgrades makes sense. Or, if your local market of houses to rent can support a higher price per month, more costly remodeling justifies the increase.
6) Privacy Fence
You’ll find a new pool of rental candidates by installing a privacy fence. Not necessarily just for pet owners if your property isn’t pet-friendly, but because parents want a safe place for kids to play. It’s also nice to drink coffee in your PJs without the neighbors noticing.
7) Exterior Finishes
Vinyl siding, paint, or an upgraded porch are certainly some of the most desired components of the features tenants want in a home for rent. Quality finishes increase your home's value and encourage renters to maintain the look.
Most renters want to live in a home that doesn’t look like a rental property. Your neighbors don’t want the house to look like a hands-off landlord owns the house, either.
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8) Wood or Luxury Laminate Floors
Few renters are looking for carpeted floors. The idea of many years of multiple families staining the carpet is the ultimate in yuck on the gross scale. Additionally, cheap carpeting has to be replaced more often. Expect low-cost carpeting to last no more than five years, maximum.
Wood flooring, even the manufactured, less expensive type, is far more desirable and durable.
9) Kitchen Upgrades
Appliances are the simplest place to invest money in the kitchen. Outdated appliances are expensive to repair, often requiring more money than a new version. They also are unpredictable and dangerous if gas leaks or fire hazards are a result of wear and tear.
10) Home Layout
The older the home, the more likely it is to have a quirky or inefficient layout. You may need an interior designer or architect to make the most of the space, which could include removing walls. More storage is always welcome, and a closed pantry or large primary suite are enviable additions.
Photo from iStock.com/KatarzynaBialasiewicz
11) Bathroom Updates
A major overhaul is your best bet if the bathrooms are severely dated. Water-efficient toilets and showers are great places to start, but you should also address the paint and tile. Double vanities with non-laminate countertops and entryless shower stalls are highly desirable in primary suites.
12) Add Timeless Appeal
In both bathrooms and kitchens, maintaining timeless backsplashes and paint choices (neutral colors and subway tile are two popular options) are non-negotiables for a long-term rental property if you want to attract and keep the best renters.
Cosmetic and structural updates are part of a wise landlord's budget for property upkeep, but rental life always has unexpected circumstances. If you’re new to the rental property business or have been unable to keep up with local market trends, consider paying for a real estate professional’s time to help you make the smartest property updates.
MilitaryByOwner's free guide for landlords is the perfect resource for both first-time and more experienced military landlords, whether you're renting by owner or using a property manager.
Main image from iStock.com/Kirpal Kooner
