Do you have rooms in your rental property that you would like to rent out? Have you ever thought about renovating them before looking for potential renters? Did you think through what factors you need to consider before you start renovating your property? If these questions have popped into your head and you’ve found yourself between a rock and a hard place about what to do next, don’t fret! In the following paragraphs, we’ll share all the relevant information you need to figure out what aspects you need to think through before renovating, along with what rooms or portions of your home you need to fix.
Once you’re through with the renovation procedure and have decided which room(s) to rent out, the next step is to list the rooms with rent portals like Cirtru, or a safe and reliable roommate finder like Diggz to guide you in your process of finding the ideal renter(s).
Let’s look at a few factors you need to consider before you begin renovating your rental property
Skip flipping your property
Flipping property involves buying houses to sell them when their market value goes up, and make a profit. Profits from such activities have been falling for a while now, so it’s a much lower risk to rent out rooms.
Invest in a fixer and set aside a proper budget
Renovation is a costly exercise, mainly if they involve kitchens and bathrooms. Therefore, it’s advisable to stick to a budget and not go overboard in your zeal to renovate almost every inch of your home. If the plan is to rent out rooms, then it’s imperative to compare the cost of the repairs with the rent you’d like to charge your renter. Ascertain exactly how much you can dish out for the repairs and then examine your home to figure out what needs to be fixed. A remodeling magazine’s Cost vs. Value report recommends renovating portions that are broken and need to be replaced over those that are just meant to enhance the aesthetic appeal of the home. For instance, it’s fine to seek repairs for the roof, structural damages, and windows.
Do it on your own
List out those projects that you can do independently versus those that need contractors’ intervention. Projects like painting a room or laminating a floor are easier for you to take up. It’s also important to consider making changes to the exterior of your home. Replacement doors, windows, and siding are some “curb appeal” projects worth taking up to enhance the outer look of your home.
Hire professionals to help
It’s immaterial whether you have the “handyman: skills or not because many such jobs are meant for experienced professionals. So, it’s advisable to hire a plumber, an electrician, and a carpenter for emergencies. Also, attending real estate investor meetings might prove beneficial in networking and getting proper inputs from others in the same business. Angie’s List and Yelp are sites that can help you track a professional with good reviews.
Now, let’s look at the areas or rooms in your home that you should most certainly renovate before posting rooms for rent and renting them out eventually. Renters are particular about the appearance and energy of places like the kitchen and the bathroom, so why don’t we look at what you can do with these spaces.
Upgrading the oven, refrigerator, dishwasher, and microwave will enhance the kitchen’s performance overall, which will appeal to renters. Some key changes that can be introduced are:
- Work on the cabinets: Paint the cabinets yourself and then add new hardware for a contemporary look.
- Get new countertops: Granite is an option but may be a little expensive. Alternatively, you can get a countertop that’s able to fight heat, scratches, and stains.
- Add finishing touches: Replace the faucet and add a new backsplash. Glass tile ones are recommended since it’s easy to clean and maintain them.
A bathroom with a modern and fresh look is what a renter would prefer.
Other changes are as follows:
- Replace the toilet seat or the toilet completely.
- Add a showerhead.
- Add faucets and cabinets.
If it’s a small bathroom, enhance the space and include some for storage purposes. Here are some other changes that you could incorporate
- Add a pocket or barn door.
- Change the bathtub into a walk-in shower.
- Fit some shelves: They don’t take up much space but provide storage room.
For enhancing the look of the bathroom, add vanities or install a sink to make an old dresser look stylish. You could even add a bathroom provided your budget allows it.
Introduce “curb appeal” features
What’s on the outside is what people see first, and it creates an impression, positive or negative. So, beautify the look of your home externally by landscaping the lawn, but don’t overdo it in terms of expenses, and ensure that it doesn’t require much maintenance. Other ideas can include the following:
- Plant fresh grass
- Include a small garden
- Paint the outside completely
- Prune back trees and shrubs
- Set up new pavers or bricks
Fit new floors
A survey has revealed that around 25 percent of renters want the floors to be replaced. In 2019, hardwood was the primary choice for new floors. It has a modern and clean look. Carpets aren’t usually preferred because they absorb and retain smells, which are time-consuming and involve expenses. It’s also advisable to replace the floors in the end since other renovations generate a lot of dirt, so they might mess up their look.
Update and paint easy-fix things
Ensure that the wall colors are neutral so that renters can paint it in a shade of their choice. Or you could have it done for them. Fit new light fixtures to add brightness and energy to the rooms you rent out. Cabinets, doorknobs, and blinds are also easy to fix.
Make an open floor plan
Time and money are crucial factors here, so if you think you can make room for both, break down some walls to clear up space. The concept of open spaces makes the inside of a room look bigger and brighter because of all the light it absorbs.
Introduce some amenities
Renters have specific preferences that you may want to look into to increase your chances of finding an ideal one and find a way to increase the rent charged.
- Add a dishwasher: When you consider the benefits renters likely to receive from the appliances you add, your rooms will get preference over others.
- Include storage space: Renters will bring stuff with them that will need to be kept somewhere.
- Add an air conditioner: A home with a centralized air conditioning system works wonders for renters, particularly in the summer months.
- Provide off-street parking: It’s a good idea to have a driveway or a carport. Such facilities also offer protection to cars in places with snowfall.
- Set up a fenced-in yard for pets: More than 70 percent of renters have pets, so this would be a worthwhile investment.
- Add a washer and dryer in-unit: Renters wouldn’t be comfortable renting a room without a washer-dryer facility, so it’s ideal to have one set up.
So, once you incorporate these changes into your home, you should be ready to post rooms for rent and find perfect renters to rent them out to!