When you decide to renovate a California City rental property, you should do it with the following considerations in mind:
- Which renovations will increase my rental value?
- Which renovations will attract great tenants?
- How long can I afford not to collect rent while I’m renovating the property?
We’re touching on all of those things today while we talk about how to effectively and affordably renovate your rental property.
Strategic Renovations vs. Total Rehabs
If you’ve purchased a fixer upper and you need to invest a lot of time and money getting it ready for the rental market, you’ll really have your work cut out for you. However, if your rental property is already in good condition, you can focus on making strategic renovations that will have an immediate impact on rental value and ROI without setting you back too much. For example, there’s no need to gut and remodel a kitchen when some updated appliances will do.
Some of the best renovations to maximize what you earn include:
- Fresh paint
- Energy-efficient appliances in the kitchen
- Hard surface flooring instead of carpet
- Improved interior and exterior lighting
- Small changes to kitchens and bathrooms
- Better landscaping
None of these improvements will cost very much or take very long. They’ll cut down on emergency repairs and keep your rental values at the top of the range for the current market.
Thinking Like a Tenant
Perhaps when you think about renovating your own home, you imagine a garden soaking tub or marble floors or a built-in wine cellar.
Those sound great, but they’re pricey. And, tenants in California City like a bit of luxury but what they really want is value.
Some of the tenant-friendly upgrades and renovations that your renters will most appreciate include a fenced-in yard where pets and children can play safely, outdoor spaces in a multi-family unit such as a balcony or patio, extra storage, and secure, off-street parking. If you are looking for a new way to attract tenants without renovating too much of your home, install a washing machine and a dryer.
Fixtures and appliances will also get the attention of tenants. Instead of replacing an entire bathroom, simply upgrade the lighting and the faucets. Install a modern mirror instead of the large glass rectangle that’s typical in rental homes.
Planning Your Renovations: Timelines and Budgets
Renovations are best done during tenant turnover periods. You don’t want to spend too much time on them, however, because a vacant property that’s under construction does not earn you any rental income.
Get your best vendors and contractors lined up well before your intended start date. Set a budget and stick to it. Use durable materials that are more likely to last for many years, so you can avoid renovations every time you turn the property over. The longer the lifespan of any improvements, the more profitable you’ll be.
