The most effective upgrades aren’t always the most expensive. You can make a big impact on tenants with a few small adjustments as long as you know where to spend your money. Then again, knowing where to spend your money is somewhat complicated, as you have a wide variety of options to choose from.
Fortunately, you can adopt a strategic approach by pursuing the top upgrades that attract and retain tenants. Increasing the value of your real estate investment is easy. When you’re selective with your renovations, you’ll see a significant hike in your occupancy rate without paying more than you absolutely have to.
Needless to say, you would probably consider a large-scale improvement if you could justify the cost. But you need to consider cost-efficiency when planning your future projects. It’s advisable to work strictly within the limitations of your budget, even if those limitations feel a little restrictive.
So which high-impact, low-cost renovations are worth your time? Which changes should you make for a substantial return on investment? We’ll walk you through everything you need to know about the subject by looking at five upgrades for investors who have the bottom line in mind.
1. New Plumbing Fixtures
The plumbing fixtures in your properties experience a lot of wear and tear. They’ll start to lose their luster over time, detracting from the overall appearance of your rental’s interior. More than this, the standard chrome finish for kitchen taps, bathroom faucets and showers is slightly outdated.
When you invest in new plumbing fixtures, you address two problems at once. You account for wear and tear while enhancing the overall appearance of your rental property. When it comes to the style of fixture you choose, anything with a rubbed-oil bronze or matte finish is preferable.
2. LED Light Bulbs
If you haven’t switched from incandescent light bulbs to LEDs, it’s time to make the transition. When you make this small but important investment, you’ll reduce your energy expenditure while improving your tenants’ quality of life. LEDs mimic natural light better and reduce eye strain.
With these beneficial qualities — and the reduction in energy usage — it’s easy to understand why so many people have already exchanged their old incandescent light bulbs. In terms of cost savings, LED light bulbs use at least 75% less energy and last 25 times longer than incandescent lighting.
3. Refinished Bathtubs
A yellowed and cracked bathtub may seem like a lost cause, but you don’t always have to invest in a total replacement. You’ll ensure the satisfaction of your tenants when you take the time to amend cosmetic issues. With this type of problem, it’s preferable to repair and retain rather than remove the offending tub.
You have a long list of low-cost options for bathroom remodels. If you dislike the idea of refinishing the entire surface of your bathtub, you can spot-fix the problem areas with touch-up products. Alternatively, bathtub and shower liners may carry you through a few years, but they’re not permanent.
4. Updated Flooring
When a potential tenant steps into your rental, flooring is one of the first things they’ll notice. It’s impossible to ignore. Of course, that doesn’t mean you have to spend a substantial sum of money on brand-new hardwood, but you have many materials which are far superior to cheap carpeting.
As an example, laminate flooring is an attractive option for real estate investors on a budget. Modern laminate is reliable, durable, aesthetically pleasing, and available in a broad range of styles. You can even find laminate boards that imitate hardwood with the same shades and textures.
5. A Fresh Coat of Paint
The outward appearance of your property has a significant influence on its profitability. Potential tenants will often skip a rental they find online if they don’t find it attractive. All it takes is a single click and they can continue browsing through a vast catalog of other properties with similar features.
A new coat of paint will lend your property the curb appeal it needs to stand out. When you show you care about the exterior of your rental, it gives the impression you care about the interior of your rental, too. This foot-in-the-door factor is necessary when you consider the convenience and visual nature of the internet.
Easy Upgrades for Your Real Estate Investments
As mentioned earlier, the most expensive upgrades aren’t always the most effective. You can increase the value of your real estate investment with less money than you might think, as long as you take a strategic approach to your renovations. A little effort can go a long way with your tenants.
Whether you upgrade your property’s plumbing fixtures, lighting, bathroom, flooring or exterior, you can feel confident in your choice. You’re making an informed, financially sound decision that won’t break your budget. As you continue, evaluate your options and plan your next improvement today.
This article has been contributed by Holly Welles from The Estate Update.