If you own rentals, you are probably caught in between how to cut costs while maximizing your return on investment. Figuring out what is vital vs. what is important vs. what is desirable is important when trying to decide what, when, and how to renovate an repair. Here are some of our suggestions for how to make it worth your while and to increase your income stream.
Repair Before Replacing
It can seem a lot easier to waltz into an apartment or house and gut the whole thing. Rip out all of the existing carpet, fixtures, and throw a fresh coat of paint on the walls in order to get a new tenant in quickly. But this impulsive move could end up costing you a great deal of money, while only saving you a minimal amount of time.
When it comes to carpets, set a strict replacement schedule, 5 to 7 years is pretty typical for rentals. And take each rental on a case by case basis. Evaluate each floor & invest in professional carpet cleaning before you make the decision to replace the carpet altogether.
The same goes for paint. The industry standard is to paint every 5 years, with the exception of a really dirty apartment that just can’t be rented without a fresh coat of paint. It will be important for you to find a cleaning company who can help you clean walls before you decide to paint. And when the time does come to paint, consider the fact that you may not need to paint the ceiling, just the walls. This will save time and money!
Matching appliances can make or break the appeal of an apartment, so when you need to replace the fridge, stove, dishwasher, etc in a unit, consider moving them around in other vacant units before replacing them and either having mismatched appliances or having to buy all new ones in order for them to match.
Have a running list of the simple fixtures that are inexpensive and easy to replace so that you can evaluate them quickly when turning a unit. Small details like these can help renters make a quick, sound decision when it comes to pulling the trigger on a rental. Here are some of our suggestions
- Sticky Door Handles
- Broken Blings
- Grungy Cabinet Hardware
- Drippy Faucets
- Toilets That Run
- Lighting Older Than 1990
Clean, Clean, Clean
Walking into a clean apartment is probably one of the top reasons that a tenant will sign a lease immediately. We can’t stress enough how important it is to hire a company who can get your rental spotless. You may have to try a couple different companies, but it will be worth it in the end, so don’t give up until you find the right fit for you!
Focus on Kitchens, Bathrooms, & Landscaping
First impressions can mean everything. So make sure to have a good landscaping company that can help you keep your lawns, gardens, and flower beds in tip top condition. You don’t need a lot, but a little will go a long way, and can help renters feel welcome, at home, and proud of where they live
Kitchens and bathrooms are normally at the top of renters list. They want modern, convenient, clean spaces. A few things to double check
- Grout & Tile are Clean
- Windows Haven’t Developed Mold
- Faucets Work Properly
- Good Lighting
- Sinks & Bathtubs Aren’t Grungy
- Cabinets are Clean Inside & Out
In short, make sure to do your rental due diligence and evaluate everything to see if it needs replaced or just repaired. Often times, a repair can cost far less, and do almost the same job as replacing it altogether.
Take a little time to hire a good landscaper and allow them to draw people in to your property through the beautiful picture that they can paint on your grounds!
As part of our own learning process, we have spent a great amount of time listening and learning from what we consider to be experts in their field. Magnolia Design Properties is here to build long term relationships with interested investors. Call us today at 1-844-428-9776 to start the journey of investing in multi-family.
