Whether you’re an experienced real estate investor or relatively new to the industry, you must be aware that the value of your rental property has an impact on your success and profitability. You need to keep your property updated to attract and retain well-qualified residents.
Finding the balance of investing in upgrades and ensuring that they’re cost-effective is not always easy. Typically, it depends on the age and condition of your property and the competition in the market currently.
We’ve been managing properties in Phoenix, Mesa, and throughout Arizona for many years, and we understand how to choose rental upgrades that are likely to increase your property value.
Here’s what we recommend.
Kitchen Upgrades Make Sense
Kitchen upgrades almost always increase the value of a rental property. The kitchen is the heart of the home for most residents, and upgrading the cabinets, replacing worn appliances, and adding a modern backsplash or better lighting is a great way to make your property stand out and attract more residents. These kitchen upgrades don't have to be high-end or expensive, but this is one area where upgrades and improvements are especially important. Prospective residents will pay attention.
Rental Property Bathroom Upgrades
After the kitchen, show some attention to your bathrooms.
Bathroom upgrades are another way to increase the value of your rental property, and you’ll rarely need to overhaul the entire bathroom. Replacing the vanity, installing a new toilet, and upgrading the shower head can make a huge difference.
It’s typically a small space, so installing a new tile floor, upgrading the lighting fixtures, and adding fresh paint to the walls will add value and appeal to potential residents without sending you over budget.
Flooring Upgrades are Impressive to Residents
It’s difficult to impress prospective residents with carpet.
There are several flooring options that can give you a high return on investment such as laminate, vinyl, or hardwood flooring. These options are generally easier to maintain than carpets, and they will also give your property a modern and sophisticated feel. It’s more cost-effective for you in the long run, too, because there’s less cleaning and fewer replacements that will be necessary during turnover periods.
Pay Attention to Curb Appeal
Curb appeal is essential as it is the first impression your rental property makes on potential residents.
Simple changes such as adding new plants, painting the front door, power washing the outside of the property, and investing in a new mailbox can give your investment property a facelift. This can give you a competitive edge over other properties in the area.
Invest in Energy-Efficient Appliances
As energy costs keep going higher, residents are looking for rental homes that can offer energy-saving options. You can give your rental property a higher value by installing energy-saving appliances that reduce your resident’s utility bills. Consider appliances such as refrigerators, washing machines, and dishwashers that have an Energy Star rating. Your residents will appreciate the lower cost of their energy bills and they’ll appreciate living in a property that’s just a bit greener than the others.
Upgrading your investment property can help retain residents, increase rental income, and improve the overall value of your asset. You don't have to spend a fortune on these upgrades, but they should be done strategically so they can have a significant impact.
The upgrades that will work best for you will depend on your neighborhood and your resident pool. For some suggestions that are customized for you and your property, please contact us at PURE Property Management of Arizona.
