Renovating your rental properties can be an expensive,is it the right thing to do for you?
June 30, 2020
Renovating your rental properties can be an expensive, time consuming undertaking, depending on the particular renovations.
If you are debating whether or not to undergo renovations, ask yourself these four questions:
- Will the renovations allow me to raise the rents?
- Though pricey upfront, if you are able to increase your rent, in the long-term ROI could be excellent. There are tools out there link rentometer or Zillow for determining the rent of your property.
- Will the renovations reduce tenant turnovers?
- Renters often leave due to lack of functionality in the property, rather than style. Can your renovations help improve the functionality for tenants? See the “Top 10 Reasons Renters Move.”
- Will the renovations attract a higher caliber tenant?
- Often, updated kitchens and bathrooms will attract better tenants who can afford higher rents. Think responsible tenants with job stability, who will take care of their living space.
- Will the renovations reduce the long-term cost of ongoing maintenance?
- Upgrading appliances, plumbing or electrical wiring now could pay off in the future. Learn more about the “Life Expectancies of House Parts & Appliances”.
if the answer to one or more of these questions is “Yes,” renovating your rentals could be highly worthwhile. Other factors to consider are the current tax benefits of renovating rental properties, and whether or not you have funds available.