Renovations are an essential landlord duty that is often relegated to the background. It might not seem crucial, especially if you have paying tenants, but outdated fittings and old fixtures will have your renters seeking greener pastures over time.
Still, with so many available upgrades, getting lost in many options and investing in changes with little returns can be easy. So a pro tip for maximizing home design and your money is to seek out updates with a high ROI that significantly improve your home’s value. To that end, here are the top 6 kitchen renovations that boost the resale value of a rental.
Top 6 Kitchen Renovations that Boost Resale Value of a Rental
Improve the Kitchen Lighting
The kitchen is one of the essential rooms in any house. It’s where many people prepare their meals, kids get homework done, and families meet for dinner. However, with so many hot and sharp objects within the vicinity, it’s also a hotbed for accidents, making proper lighting in this space crucial.
Besides the overhead light, you can consider other options to brighten your kitchen, like under cabinet tasks or overhead sink lights. In addition to improving visibility, it’ll make your kitchen more aesthetically pleasing. If you want to go the extra mile, you can even invest in a skylight which is a fantastic hack for smaller kitchens as it distracts tenants from the lack of square footage.
Get a Kitchen Island
Speaking of small spaces, if you want your kitchen to appear bigger than it is, consider adding an island. This addition will increase your kitchen work and storage space, making it more convenient for your tenants.
Besides, it’s a highly sought-after trend, especially for homes needing more dining area space. Thus, if you’re dealing with furnished apartments, add a couple of bar stools or comfortable seats to dualize this space. Since furnishing an apartment can be a lot of work, professional property management can assist with routine maintenance to ensure your investment is rent ready.
Invest in Quality Countertops
Another excellent upgrade that can boost your rental’s resale value is quality countertops. If you increase and illuminate your workspace, you might as well make it attractive.
Granite and quartz are gaining popularity as quality materials for countertops because of their water and heat resistance. They’re also quite durable and can remain in mint condition for up to 10 years, depending on the material’s quality and workmanship. The aim should be to balance aesthetics and costs for the most beneficial results.
Upgrade Your Kitchen Cabinets
Give your kitchen a more polished look by upgrading your kitchen cabinets. Worn-out cabinets can be a huge eyesore and indicate that your rental is old and outdated.
Opting for newer fittings can give your home a more modern feel and attract newer renters looking for something more chic. Besides the obvious aesthetic appeal, upgrading your cabinets has one of the highest ROI for kitchen renovations, with figures between 70% and 80%. Even if you’re pressed for funds, you could easily change up the look of your current cabinets with newer hardware and a fresh paint job.
Update Your Flooring
Opt for top-tier flooring to leave a lasting impression on prospective renters and buyers. Worn linoleum or dated tiles can significantly reduce your rental appeal giving your home the appearance of a not-so-heart-warming flashback.
Matte tiles and hardwood floors have some of the best ROIs for flooring, and you can earn as much as 80%. Consider changing the flooring for continuity, depending on the square footage, if you have a dining area.
Change Your Appliances
Modern appliances are excellent kitchen upgrades that add value without breaking the bank. State-of-the-art refrigerators, microwaves, dishwashers, and coffee makers can boost your ROI and attract more renters to your home. These pieces of equipment are especially useful if you own a vacation rental or want to provide luxury apartments. Considering these leasing options earn a higher profit margin for their owners, they’re well worth the investment.
How to Calculate ROI from Renovations
ROI, return on investment, is a financial metric to estimate the profitability of an investment relative to the cost. For example, if you spent $10,000 on new hardwood floors and sold your house for $7,000 more, that would be a 70% ROI. Choosing the right upgrades can improve your chances of earning a decent return when your rental hits the market. It can also enhance your home’s appeal, making it faster to sell and improving your tenants’ quality of life while they’re there.
Whether you’re looking to flip a house or hold for a couple more years, there’s no denying that upgrading your rental’s value is an attractive undertaking. After all, who doesn’t love having a little extra money in their pockets? Durable countertops, modern cabinets, and improved lighting are some of the best renovations that can boost the resale value of your rental.
If you need an extra hand selecting the best upgrade or overseeing your next remodeling project, hire a property manager. These experts can assist you in making the best decisions and getting the most out of your upgrade.