When it comes to renovating investment properties, it’s vital to keep the renter in mind and stick to your rehab budget. One way to do this is to make minor cosmetic updates that can make a world-of-difference in attracting renters. And the best part is that these small-scale fixes aren’t too costly, so they should leave your projected yield intact.
Our HomeUnion® Asset Management team has handled hundreds of rehabs, and we’ve found the following rehab work will really spruce up an investment property and make it very attractive to renters. And more submitted renter applications means you have a wider pool to vet with and can pick the cream of the crop to live in your investment property.
So time to pull up your sleeves and get to work on:
1. Installing new light fixtures. Old fixtures can easily date your home. For a couple of hundred dollars, you can install new lighting that will make the interior look more modern and enticing. Common types to update that we run across are pendant and flush mount lighting. You’ll want to choose a basic style that appeals to a broad range of tastes.
2. Pressure washing the exterior. Homes go through a lot of different seasons from the cold winter snow to scorching summer sun. Wash the seasonal effects away with a pressure wash that’s only a couple of hundred dollars. A simple pressure wash will save you thousands in the end, since you may not need to repaint the exterior; a costly repair.
3. Replacing shower heads in the bathrooms. You’ll be surprised on how much this little detail makes a difference. Shower heads can quickly turn away potential renters, especially if they show heavy signs of wear like grime or mold. With newer models on the market at less than a hundred dollars, it’s always a good thing to replace.
4. Painting interior and ceiling. A great way to make a home feel like new for your renter is to paint the interior soft, neutral tones. Smaller homes should stick with lighter colors to make the space feel more open. Popular palettes we use are beiges and grays to make the home feel contemporary. And while you’re painting, you’ll also want to paint the ceiling white. This will really make the space feel like new.
5. Buying new knobs. Adding new knobs to your cabinetry makes the kitchen feel more modern without having to do a complete kitchen remodel. Stick with a classic look that will appeal to many renters.
All these budget-friendly upgrades will help your investment property appeal to a variety of renters. And hopefully, get your investment property rented quickly, so you can achieve the ROI you planned for. At HomeUnion®, we keep the investor’s desired ROI in mind at all times, especially when we renovate and find tenants for our investors. You can see how successful we’ve been by checking out this Home Renovation where rehab was completed 14 days early and tenants quickly moved-in within 19 days.