Feb 21, 2020

Should you renovate a rental property?

renovate a rental property
Owning a rental property is great, even when you take all the downsides into account. You have a monthly income that you don't work for every day, but you also have to deal with many different things. For example, you might have troublesome tenants, or have a property that needs to have some work done, but it is overall beneficial. You are the one that makes all the decisions, so you can choose who lives there and if you are going to renovate it. But you might be asking- should you renovate a rental property? And the answer is- yes, sometimes you should.

When should you renovate a rental property?

Sure, there are some situations when renovating a property that you are renting makes sense. If you just made a successful relocation in NJ and bought a property that you want to rent to other people, you can choose to renovate it. You won't be able to lease out an apartment that does not look like that is what its purpose is. So, in this case, renovations are mandatory. But there are some other situations in which you should renovate a rental property. Making sure you only do it if you feel like it is necessary or when you are certain you can make a profit can save you some money. Doing it just because you like something new is not a good choice. You will be spending your money and won't be gaining anything out of it. There are some situations when renovating your rental property is acceptable:

  • Your rental property will be safer if you fix problems instead of covering them up
  • The rental properties in your area are in a better condition than the property you are renting
  • You will increase the value of your property and will be able to ask for a bigger rent
  • If you renovate a rental property, you will reduce maintenance or operating costs
  • You will be able to attract some high-quality tenants
cash you can earn if you renovate a rental property
Make sure you are gaining financial benefit from this renovation

Safety should always be your priority, especially if you are leasing out a house or an apartment. Things like investing in LED lights and other safer, cheaper and more greener solutions are always a good idea. You should make sure your tenants are happy with the choice they made when they decided to move into your property.

Safety is an important motive to renovate a rental property

You need to be sure that you are a responsible landlord. The safety of your tenants should be the most important thing for you, more important than the height of the rent. So, make sure you take care of problems by fixing them, not covering them up. This is even more important if your property is not located in the city. Even with all the benefits of living in the province over living in the city, hospitals are smaller and less equipped. You don't want to be responsible for other people's injuries. Invest in safety; it's one of the best reasons to renovate a rental property.

You have to be able to compete on the real estate renting market

Another great reason to invest in a renovation of rental property is to be able to compete with the neighbors. Even with all the mortgage and real estate changes in 2020, you have to be able to compete with the other landlords in the area. It is not easy, and you have to be aware of that. Potential tenants have a huge choice and they will go for both the cheapest and the nicest properties. You should renovate a rental property if it is going to make your rental property look much better than it does now.
A block of houses
Make sure you can compete with the neighbors
Gaining financial benefit is always a plus

If you can renovate a rental property and be able to ask for a higher rent, then you are doing a good job. By increasing the value of your home, you will be able to make it safer as well and this is a good reason for you to ask for more money. Even a simple paint job inside and out of your rental property can make it more valuable. Of course, you should never do it by yourself, but hire professionals that will paint the interior and exterior of your property. Nothing will make you feel better than investing in the looks of your property and making it more valuable at the same time. 

Another way to save is to make sure you cut down the costs

If your rental property is outdated and has outdated appliances inside as well, your electric and heating bills will be sky-high. This is something that can easily be fixed. Make sure your walls are thick enough that the heat is not escaping and window frames should be replaced if necessary. Get new appliances and even new electrical installations. Getting the appliances that are energy-efficient is a great idea and will show you quite a difference in costs. This way, you will be sure that you will have a huge difference when it comes to paying the bills. Gather the old appliances and other obsolete things, hire bluebellmovingandstorage.com, and get them moved and stored. You will be able to sell or donate them later on.
a stove with pots on it
Getting energy-efficient appliances is a great investment
Attracting some high-quality tenants is a great reason to renovate a rental property

The best thing that can happen to you as a landlord is to have luck when it comes to tenants. Being able to rent your property to the right people is truly a great feeling. But it takes more than luck. Smart, young people that will respect and take care of your rental property are going to look for the perfect home to rent. So, you need to make sure that is just what they see once they take a look at your property. Even simple things like strengthening your home security systems is a big plus.

Taking care of your tenants is simply a must when it comes to renting a house or apartment. People are willing to pay more just to feel secure and taken care of. This is just the card you should play. Renovate a rental property for one or more of these reasons and you will see the benefits it brings you.

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