Most investors recognize that enhancing their San Diego rental properties is essential for attracting tenants. Moreover, these enhancements act as a pathway to increasing the investment’s value.
Certain home renovations can greatly increase a property’s value. Knowing which renovations have the best ROI is important for rental property owners to achieve long-term success and profitability.
Kitchen
As you consider renovating your rental property, first weigh the construction expenses against the projected increase in property value. In a recent survey conducted nationwide, the majority of home sellers agreed that kitchen updates offer the best ROI for the money spent.
Nevertheless, this doesn’t require a total kitchen renovation to improve your property values. Instead, simple updates like refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet can refresh your property’s interior without a hefty budget. This lets you make substantial improvements without going over budget.
Bathroom
In bathrooms, the same rule applies: even minor renovations can greatly increase value as long as your facilities are up-to-date and pleasant to look at. Consider refreshing old, worn tile tub and shower surrounds with a new fiberglass overlay. Install a new vanity and mirror, or consider a fresh, light coat of paint for the room. Replace worn vinyl flooring with tile for a superior upgrade.
The long-term benefits of tile are even more notable, as it lasts for decades without needing replacement and offers a more upscale feel than laminate flooring, with only a modest increase in cost. This guarantees that your investment will remain durable.
Stone Veneers
When renting a property, making a great first impression is essential. So, why not give the exterior of your property a facelift? A top-notch improvement is adding manufactured stone veneer to your property’s front exterior. Besides giving your property a new look, it also ensures a great return on investment by attracting more tenants.
A cost vs. value analysis found that replacing vinyl siding with stone veneer around entryways, pillars, or the lower third of the front exterior walls enabled sellers to recover nearly all installation costs. By upgrading before selling, you can increase profits by making your rental home more appealing and commanding higher rents.
Doors and Windows
Certain remodeling areas can yield the highest return on investment. Two key areas include garage doors and windows. If you own a rental with a garage, consider replacing the door when it becomes worn.
Replacing the garage door may seem minor, but it can significantly enhance your property’s value, like stone veneers. Replacing old windows with vinyl ones instantly boosts aesthetics, safety, and energy efficiency. Such home improvements can significantly help fill a vacant rental property.
Investing in property upgrades can require both time and money. Yet, these upgrades are essential for the long-term success of your rental property investment in San Diego. By planning and budgeting for regular updates, your rental property stays competitive and appreciates in value.
To create a rental property that will attract both renters and buyers, call Real Property Management Realevate Specialists at 858-997-2100 or 951-461-0100 or contact us online. Our property managers in San Diego can evaluate your property and recommend cost-effective strategies.
Originally published: July 8, 2022
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