When a unit or house becomes vacant, there is much for the investor/owner to consider. Usually, upon vacancy there is a small amount of wear and tear depending on how long the tenant resided in the property. Hopefully, the security deposit that is held for such instances will cover the cost of the repairs needed but there may be a need to invest additional money in the property which will lead to questions about how far to take the remodeling. Beyond the fact of re-renting the property, there are other reasons to remodel:
- Maintaining the integrity of the property with the needed repairs or replacements. (Example-Upgraded plumbing fixtures or pipes)
- Improvements to the property may lead to more qualified tenants that will stay longer
- Bringing the property up to marketable condition to eventually sell.
- Taking advantage of tax advantages and credits
- The surrounding area supports the remodeling efforts with increased rents due to upgrades (Example-Granite countertops, stainless steel appliances, etc).
There are five different cost effective ways to improve a home effectively that offer a high ROI.
- Thorough cleaning of the property including an intensive scrub of the kitchen and bathroom and don’t forget to clean the exterior of the home with a pressure washer, as mold and mildew buildup on siding is unsightly.
- Interior and Exterior paint – A fresh coat of paint on the outside goes a long way towards improving curb appeal and can camouflage small flaws and make the room feel fresh and new again.
- Flooring-There are many alternatives in laminate flooring that look so luxurious and authentic that increase the attractiveness of a property. Just make sure that your choice suits the property and the ROI.
- Kitchen and bath – According to Realtor.com, kitchen and bath remodels offer an 85% return which makes them sound investments for a rental or owner situation. Properties can benefit from even resurfacing tubs and showers or refinishing cabinets instead of total rehabs.
- Windows and doors – Replacing doors are less expensive than windows, but depending on the situation you many have to invest in new windows to save efficiency on heating bills. Also, if the door is warped, the tenant may worry about safety if it is not secure so this may be a no-brainer about replacing it.
Regardless of the situation, the owner/investor should contact professionals to complete the job, to evaluate the current property and estimate what the potential ROI of the project would be. Also, unless you are a contractor with a valid license, you may want to leave plumbing and electrical work to the professionals.
The professionals at Real Property Management Three Rivers can offer our services towards improving your ROI on your rental property and securing qualified tenants so that your time is yours to do what you would actually prefer to do.