How to Renovate Your Rental Property for Profitability

Renovating your rental property has several long-term benefits for you. It can allow you to increase your nightly rates and rental profitability. It can mean less property upkeep over the long-run. It can also function as your family’s home for any months you might be hoping to reside there. 

The good news is that you can achieve all of these benefits without breaking the bank. A redesign or renovation is about being smart with your investment, not necessarily throwing money at the home.

Today, I’m sharing several tips for updating your rental while keeping your ROI in mind. But first…

What if my rental is also my family home at points during the year?

If your property will double as a family home during certain months of the year, I suggest following the tips below and depersonalizing the home as much as possible. You’ll want to remove clues about your lifestyle so that a tenant can imagine their family in the home instead. A home with another family’s personal effects in it won’t feel like the vacation getaway they’re hoping for!

So, what can you do? If you have children’s rooms with walls in colors that are clearly juvenile, paint them in a neutral tone. (More tips on that below.) If you have vibrant pillows, bedding, and towels in the colors you love, take them with you and, again, get some classic neutrals in there. 

You don’t have to be afraid of having family photos and accessories around the home either. These can easily be packed up and taken with you when renters come, as well. Keeping a designated box at the ready — with stand-ins ready to replace them for renters — will make this a quick routine each time you occupy and leave the home.

Okay, now let’s dive into renovation tips…

Tip 1: Don’t agonize over the little details

The first trick is to remember that the rental market does not care about your personal preferences. I know that might sound harsh, but it’s really important to remember, as it can save you from investing in updates that don’t serve your long-term profitability. 

For example, you may love bright colors, but if the rental market is leaning in a different direction (it is), you’re not doing ourselves any favors by prioritizing those colors. 

Or, you may love a certain fancy backsplash, but if the home isn’t your primary residence, splurging on that backsplash isn’t going to increase your rental income. Renters would be just as happy with a classic subway tile (like the shower above) that isn’t breaking the bank.

What should you agonize over? The details that have the greatest visual and functional impact. Keep reading…

Before Renovation

After Renovation

Tip 2: Replace what’s broken.

Anything that is broken MUST be fixed. Whether it’s a faulty appliance, a malfunctioning doorknob, a leak, a bulb that’s on its last leg of life, etc. Make sure that everything is working in perfect condition. If you have to ask, “should I fix that?” — you probably should. If you noticed it, your renters will, too. 

Plus, how can you expect your tenants to respect the space if they start out with issues? Start off on a great foot, and there’s more likely to be a great experience on both sides of the table.

Tip 3: Hire professional carpet cleaners or update the flooring.

A professional carpet cleaning service can make a massive difference in showing your old carpeting in a whole new light. However, keep in mind that even the cleanest carpet is considered dated these days...

Most renters appreciate and value hardwood flooring, and it could be a deciding factor for them—especially for those with kids or pets. Luckily, LVP flooring (Luxury Vinyl Planks) are amazingly cost-effective and much easier to clean than carpet. This flooring will quickly elevate the look and feel of the space while decreasing the amount of maintenance required for renters, and for you. 

Here’s another post on 7 materials that are ideal for rental spaces.

Tip 4: Concentrate on the kitchen and bathroom(s).

Kitchens and bathrooms are smart places to invest in updates, as they go a long way toward the overall perceived value and aesthetic of the home — and little fixes can be enough. Updates like newly painted cabinets, fresh hardware and pulls, and more modern lighting can make a big difference in these rooms. 

Granite countertops also continue to be a desirable amenity amongst renters. Luckily, there are several budget-friendly choices in granite. Ask when you visit your fabricator, and they can point you in the right direction.

P.S. See our feature on guest bathrooms in Redfin for more great tips — just stick to less bold colors.

Before Renovation

After Renovation

Tip 5. Paint the walls.

A fresh coat of paint livens up a room faster than any other update. That goes double for painting the entire home. I suggest sticking with neutral paint color options in your rental (again, not your favorite colors), because it will appeal to the widest amount of renters.

I also suggest using the same color throughout the entire home. This results in a more cohesive design, less hassle for the painter (which usually means a better price for you), and allows for easy touch up and patching if a repair is needed. 

I’ll be sharing some of my favorite paint colors for this purpose in an upcoming blog post. Stay tuned!

Bonus Tip: Spring for a professional photographer.

Hiring a professional photographer may seem like a big-ticket expense, but it will pay off in spades. Attracting a good tenant is part beauty contest, and the photos will tell the story. I’m sure you’ve even experienced this yourself — think about the difference in a Zillow listing that is clearly using photos snapped by an iPhone vs. a professional photographer. I bet you noticed right away.

Especially if you’ve made any new renovations or decorations, high-quality photos will highlight all the space’s best features and depict a truly great rental worthy of that higher rent price. It’s worth it!

I will leave things there for now, but if you need help assessing your rental for investment-savvy updates, we’d be happy to help! Give us a call or contact us here. 

Yours,
Sarah & Steve Abbott

P.S. Don’t forget to grab our Guide to Renovating Your Kitchen below!