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Which Renovations Give You the Best Return On Investment?

Contemporary Blue Kitchen with Renovated Windows, Cabinets, and Countertops

If you are the same as many other investors, you already know by heart that improving your Manhattan Beach rental properties is an essential method of getting quality tenants. At the same time, regular property improvements are also the key to adding value to your investment. The very important thing to realize related to home improvements is that some add more value to a property than others. For Manhattan Beach property managers, grasping which improvements give back the best return on investment is crucial to your business’s long-term success and profitability. Here are numerous top renovations that industry experts say will supply the best return for the cost.

Garage Door: If your rental property has a garage, one of the easiest and most cost-effective ways to add value and increase curb appeal is to replace or upgrade the garage door. It’s not crucial to spend a lot on your new garage door to get this benefit, either. Even an ordinary garage door of good quality will generally give a high return on your investment and significantly improve the look of your property. Pro tip: Pair your new garage door with a smart opener to create even more tenant appeal.

Stone Veneers: Speaking of curb appeal, updating your rental home’s exterior is certainly on the top of the list of rather inexpensive updates that offer big returns. In general, the upgrade that will add the most value to your property is manufactured stone veneers. According to a 2021 Bankrate report, replacing vinyl siding with stone veneer around an entryway, pillars, or the lower third of your property’s front-facing exterior walls helped sellers to recoup nearly all of the cost of installing it. Selecting this upgrade before you get ready to sell may hold an even larger profit potential, making your rental home more marketable and allowing you to charge a higher monthly rent.

Kitchen Remodel: For your rental property’s interior, the most common upgrade that will maximize your property’s value is remodeling the kitchen. People love their kitchens, and tenants are no exception! In a current nationwide survey, a vast number of home sellers said that kitchen updates offered the best return on investment (ROI) for the money spent. Be that as it may, that doesn’t imply you need to re-do the entire kitchen to have your property values increase. Rather, minor updates, such as refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet, can breathe new life into your property’s interior without breaking your budget.

Updated Bathrooms: The same is true for bathrooms, where unless your property’s facilities are unusually dated or disfigured, even small renovations can trigger awesome jumps in value. Think about covering old, worn tile tub and shower surrounds with a new fiberglass overlay. Add in a new vanity and mirror, or try painting the room a fresh, light color. Replace worn vinyl flooring with tile for an even more notable upgrade. The long-term benefits of using tile are even greater since tile tends to last for decades without needing replacement and has, over and above that, a more elegant feel than laminate flooring, despite that the price tag isn’t that much higher.

Small Updates: As you design your rental property improvements, don’t omit the small upgrades that can make the main difference. Such as, simply replacing outdated light fixtures in strategic areas of the home can make the entire property look better. Further, adding lots of appealing outdoor lighting, painting the front door a pleasant new color, or replacing worn-out window blinds can all do high returns relative to the cost. The same goes for light switches and outlet covers, cabinet hardware, door knobs, and other small details. These small updates are a bargain while improving the look and feel of your rental property. Pro tip: Upgrade to a smart thermostat, smart locks, and other tech-friendly features to attract tenants in a flash!

Preparing and implementing the perfect property improvements and upgrades is integral to your investment’s long-term rental success. By organizing and putting these and other home improvements into your Manhattan Beach rental property’s operating budget, you can make certain that your property stays competitive and continues to get big increases in resale value.

 

Would you want more information about how to set up a rental property that both renters and buyers will be seeking? Give Real Property Management California Coast a call at 310-535-2150 today. We can help you evaluate your property’s current condition and offer inexpensive means to see to it that your property stays competitive in rental and resale markets.

 

Originally published: March 12, 2021

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