There is a range of standards by which you can modify your rental properties.
- For starters, you have 'liveable.' This condition is just the bare minimum in repairs and updates that make it possible to rent a Chesapeake home safely.
- Then, there's 'luxurious and opulent,' where every possible bell and whistle has been added to spruce up a rental to maximum shine.
- These are only two extremes—so where does your Chesapeake rental home fall? To figure it out, you'll need to run some rental research—or work with Chesapeake property management to do it for you!
While there are certainly pockets of the rental market where pulling out all the stops can yield you a good return, most renters are looking for functional comfort with just a few thoughtful details added.
It's possible to overdo rehab and lose money because the rental rate simply cannot match the investments of time and capital made on your part. Here are some ways to think through which kinds of rehab are most important for you and your property investment business.
Some Updates May Yield Very Little ROI
Make sure that you've researched what the updates you're considering will do for your rental income.
- If your rental property already needs to have its rate set at the top of what this area's market will hold, it's not the right time to add in a luxury countertop in the kitchen when a durable mid-range one will work just fine.
- There are also changes and updates to the character and look of the home that may simply not draw in more rental applicants.
- For example, a complicated new landscaping arrangement, rather than something easy to maintain, may actually cost more than it adds to curb appeal.
Since many renters are looking for a safe, comfortable, and beautiful place to live in the short or medium term, they may not be as interested in fancier and more expensive upgrades to the property.
Don't wait until after a property has become a rehab 'money pit' to consider which elements will actually boost your revenue! You can learn more by working with experienced Chesapeake property management services to discover what renters want in a home.
Small Changes Can Add that 'Wow' Factor
- For properties that only need a small facelift and not major repairs, do research on the kinds of small updates that tend to make a space look updated and nice for less investment.
- For example, a contemporary set of kitchen hardware can be very impactful without the expense of replacing or repainting the cabinets themselves.
- You might also find that small bathroom remodels, updated but subtle landscaping, and entry door replacement all give big benefits without big price tags.
- If you're looking for bigger projects, consider remodeling efforts that add finished space, like basement or attic remodels or turning a large closet into a half-bath.
You'll have the opportunity to grow your rental rate when you can claim more bathrooms, bedrooms, or square footage.
Focus on Quality Without Needing High-End Rent
While ROI is important, you also want your rental property to hold up over time. Choosing cut-rate rehab is a losing strategy when it comes to securing and retaining renters long term.
- For instance, if low-quality laminate flooring will buckle and need replacing quickly, you're on the hook for another expense and may have a frustrated renter in the mix as well.
- Don't let yourself be sold something that is unnecessarily flashy, but also don't opt for low-end materials that won't hold up over time. Find the in-between that will look great for years to come.
This will require you to do some serious research into contractors. If you haven't been researching who you work with as thoroughly as you do your renters, you might be in for an unpleasant surprise!
That said, you can always work with a Chesapeake property management company that already has these contacts in place to spare yourself the hassle and risk.
Let Your Research Guide Your Rehabs
- If you're already the nicest home available in your neighborhood, try not to waste money competing mostly with yourself: adding to your sticker price may push away residents.
- If you're at the low end of the property market, investigate whether offering very competitive rent or doing a little more rehab would be best for your bottom line.
- Remember: If you don't take advantage of a new trend for this leasing cycle, you can make a note of it, see how properties with that rehab feature do for the year, and make your own updates for the next time you have a vacancy.
- Rehab should be less focused on luxury and more focused on finding those updates that are practical and beautiful features for the price range you can achieve.
You also don't want to cut corners since doing so can leave you with repair bills in the future. Find that happy medium and reap the rewards of reliable, long-term renters.
Again, if you find that you're short on the time you need to do the right research, a partner like Renters Warehouse can be a tremendous asset for your Coastal Virginia properties! Learn more about investing with the aid of expert property management services when you download your free copy of our guide to real estate investing!