Whether you’ve just purchased your first investment property that needs renovations or have been a landlord for a long time, updating your property is essential. Renovating your rental can attract more tenants, increase value, and even enhance safety and efficiency.
However, it’s important to know when and how to renovate your property for the best ROI. So, how often should you renovate your rental property, and what renovations should you do? Here, we break down which upgrades have the most impact and how often you may need to do them.
What Renovations Should I Consider?
When it comes to renovations, focus on areas that are the most important to tenants and can yield the highest ROI, including:
- Bathroom remodels. Outdated bathrooms can deter potential tenants. Consider updating tile, lighting, and hardware for a fresh and clean look.
- Cosmetic improvements. A fresh coat of paint, new light fixtures, and modern flooring can go a long way toward increasing your property’s appeal and value.
- Exterior renovations. Don’t overlook exterior upgrades like new siding, fresh paint, and professional landscaping to appeal to potential renters.
- Energy-efficient upgrades. Ensuring the property is energy-efficient with new windows, proper insulation, smart thermostats, and energy-efficient appliances can attract renters looking to keep their utility bills low.
- Kitchen remodel. Renovating your rental property’s kitchen can have a significant impact on its value and tenant appeal. Replace countertops, backsplashes, and cabinets for a refreshed space.
Keeping your rental property updated and well-maintained can help increase its value over time, minimize vacancies, and keep your investment profitable for years to come.
How Often Should I Renovate?
Now that you know key areas to renovate, it’s time to look at how often you need to remodel to maintain your property’s value and tenant appeal.
The frequency of renovations depends on several factors, including the age and location of the property, tenant turnover, and whether your renters have pets or children.
For example, if you have a property with high tenant turnover, you may need more frequent updates to ensure the property meets the needs of your tenants. Older properties may also require more frequent renovations due to aging components in the home than newer ones.
Properties that allow pets or children may need more regular upkeep due to wear and tear. When pets and children are in a property, floors may require refinishing and walls might need repainting more often.
If your property is located in a higher-end or luxury neighborhood, tenants will expect modern finishes and amenities in a rental. Regular updates in these areas may not only be necessary but critical to keeping your rental competitive.
As a general rule, you should update:
- Bathrooms every five years
- Flooring every 10 years, or sooner if there is noticeable damage
- Insulation every 15-20 years
- Kitchens every 10 years
- Paint every two to three years or between tenants
FAS Management Keeps Your Investment Profitable
Considering making renovations to your rental but not sure where to start? Consult with the property management professionals at FAS Management. Our experienced team can assess your property and help you determine what upgrades would have the most value based on your rental’s age, location, and condition. Contact us today at (202) 337-5080 to learn more!
