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Which Renovations Give You the Best Return On Investment?

Contemporary Blue Kitchen with Renovated Windows, Cabinets, and CountertopsMany investors get that improving your Dunnellon rental properties is an essential process to keep them attracting tenants. Still, property improvements are also the means to adding value to your investment. The most crucial thing to realize with home improvements is to some add more value to a property. For rental property owners, apprehending which improvements provide the best return on investment is important to your business’s long-term solid success and profitability.

Kitchen: When you are in the process of planning to improve or renovate your rental property, at the beginning you should assess the construction costs versus the expected gain in property value. In a recent nationwide survey, some home sellers indicated that kitchen updates bestowed the best return on investment (ROI) for the money spent. However, that doesn’t suggest you need to entirely re-work the entire kitchen to make your property values rise. Really, even minor updates, similar to refacing cabinets, replacing appliances, or attaching a new countertop, sink, or faucet, can update your property’s interior without breaking your budget.

Bathroom: The same definitely goes for bathrooms, where unless your property’s facilities are incredibly dated or unsightly, even small renovations can cause exceptional jumps in value. Try covering old, worn tile tub and shower surrounds with a new fiberglass overlay. Position a new vanity and mirror, or consider painting the room a fresh, light color. Replace worn vinyl flooring with tile for a much bigger upgrade. The long-term benefits of using tile are even greater taking into account that tile tends to last for decades without needing replacement and has a significantly more upscale feel than laminate flooring, even in the case the price tag isn’t that much higher.

Stone Veneers: Together with interior improvements, be sure to take care of your property’s curb appeal as well. First impressions are crucial to both a successful rental property and resell. This is why you need to do more updates to your property’s exterior. One upgrade that provides the best return on investment is making use of manufactured stone veneer in sections of your property’s front exterior. It is stated in a 2020 report, replacing vinyl siding with stone veneer around an entryway, pillars, or lower third of your property’s front-facing exterior walls helped sellers recoup most or close to all of the cost of installing it. Taking advantage of this upgrade before you plan to sell may give even greater profit potential, making your Dunnellon rental home more marketable and easily allowing you to charge a higher monthly rent.

Doors and Windows: Some other areas that extend the highest return on your remodeling dollars: garage doors and windows. If your rental property has a garage, it’s a brilliant plan to replace the door if it starts to look worn or damaged. A new garage door is a relatively inexpensive update, however, it provides one of the most crucial increases in a property’s resale value, like stone veneers. The same happens with replacing old windows with new vinyl windows. New windows can not only endow instant aesthetic improvements but indeed they are really safer and make your property all the more energy-efficient. With all these enticing benefits, replacing old windows is one home improvement that will bring on some of the best returns on investment as soon as you’re willing to sell the property.

Property improvements and upgrades will definitely be expensive and time-consuming. But really, they are essential to long-term rental property investing success. By conscientiously planning and putting regular home improvements into your Dunnellon rental property’s operating budget, you can make sure that your property stays competitive and carries on to see excellent increases in resale value.

Would you like more information about how to create a rental property that both renters and buyers will want? Go ahead and give Real Property Management Diversified a call at 352-854-2221 to speak with a Dunnellon property manager today. We can help you evaluate your property’s current condition and suggest budget-friendly ways to ensure that your property stays competitive in rental and resale markets.

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