Plenty of investors know that making improvements to your Manhattan Beach rental properties is an important way to keep them attracting tenants. But, property improvements are also the key to adding value to your investment. When speaking of home improvements, there are upgrades that add more value to your property than others. For rental property owners, knowing which improvements offer the best return on investment is critical to your business’s long-term success and profitability.
Kitchen: Thinking about upgrading your rental property? You should consider the construction costs versus the expected gain in property value. In a recent nationwide survey, most home sellers indicated that kitchen updates offered the best return on investment (ROI) for the money spent. Regardless, there are other ways to make your property value rise besides kitchen renovation. Minor updates, such as refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet are all affordable ways to renovate without draining your bank.
Bathroom: A small renovation to your property’s bathroom can lead to a significant boost to the property’s value. Consider covering old, worn tile tub and shower surrounds with a new fiberglass overlay. Install new vanity and mirror, or consider painting the room a fresh, light color. Tile would be the better choice to use as a replacement for old vinyl flooring. Tile is a great choice because it has a lot of long-term benefits. One benefit of using tile is that it lasts long without needing constant replacement. The price difference is also not that far from laminate flooring.
Stone Veneers: Interior and exterior upgrades are key to adding value; therefore, don’t forget your property’s curb appeal! First impressions can definitely be a factor in a rental property’s success, and its resell. Hence, don’t forget to show some love to your property’s exterior. If you add a stone veneer to your property’s front exterior, you’re guaranteeing yourself a return on investment. According to a 2020 report, replacing vinyl siding with stone veneer around an entryway, pillars, or lower third of your property’s front-facing exterior walls helped sellers recoup almost all of the cost of installing it. Going down this upgrade path prior to selling the house could lead to making your Manhattan Beach rental home more marketable and allowing you to charge a higher monthly rent.
Doors and Windows: There aren’t a lot of upgrades that offer the same level of return of investment other than garage doors and windows. If your rental property has a garage, don’t wait for the door to become worn or damaged before you plan to replace it. A new garage door, even though quite inexpensive, can do a lot to raise your property’s resale value in the same way stone veneers can. The same thing is true of replacing old windows with new vinyl windows. New windows come with a lot of perks — they offer aesthetics, safety and security, and energy-efficiency. These benefits should encourage homeowners to pursue home improvements, especially when something as simple as replacing old windows can lead to a high return on investment.
Property improvements and upgrades can be expensive and time-consuming. But they are essential to long-term rental property investing success. By planning your home improvements and putting them in your budget, you can make sure that your Manhattan Beach rental property stays competitive and continues to rise in resale value.
Are you on the lookout for rental properties that are appealing to both renters and buyers? Give Real Property Management California Coast a call at 310-535-2150 to speak with a Manhattan Beach property manager today. We can help you evaluate your property’s current condition and suggest budget-friendly ways to ensure that your property stays competitive in rental and resale markets.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.