If you’re an owner currently renting your Miami property or you hope to do so in the future, it’s important to consider how a home renovation might increase the value of your rental. Whether you’re adding a new bathroom, expanding the master suite, upgrading appliances in the kitchen, or replacing your siding, a rental property renovation could improve your investment and attract better tenants.
Most of the money you spend on renovations will not fully be recouped, but that doesn’t mean that you should not consider a rental property home renovation. Here are some factors to think about when approaching rental property renovation.
Factors to Consider in Rental Property Renovation
Nearby Rental Properties
When you’re planning a rental property renovation, you have to consider the amenities of nearby rental homes. You want to compete with the surrounding properties — and you won’t be able to if your home has an inferior kitchen or a smaller master bedroom. If you want to increase the value of your rental property and be able to charge higher rent, then you must ensure that your rental property renovation will make your home comparable or superior to neighboring rental properties.
Sometimes, this means scrapping a renovation that you feel would improve your rental property — finishing an attic space, for example — if nearby rental homes do not have the same feature. You should be aware of the benefits and flaws of nearby rental properties so that you can position your rental home higher through rental property renovation.
Sometimes a room doesn’t need a major facelift to look great. If an existing room has a good layout but outdated features, appliances, cabinets, or paint colors, consider less costly but effective repairs during your rental property renovation. For example, a kitchen renovation doesn’t have to involve a full gut job in order to increase your rental property’s value — instead, paint or refinish the cabinets if they’re scratched or just aesthetically stuck in the past, consider an updated wall color, and upgrade the countertop if it’s chipped or damaged. You’re more likely to recoup your investment on a minor renovation rather than a major one.
Renovate with the Renter in Mind
It might be tempting to approach your rental property renovation with your tastes at the forefront, but remember that your goal is to make your home more appealing to a renter, not to yourself. Be sure to choose finishes and colors that are neutral enough that many people will enjoy them. Bolder colors can be brought in with accessories. The goal is to help potential tenants envision themselves in your space — if you renovate and decorate in one style, renters might not see the property as a blank slate where their personal items can fit in.
Hidden Costs of Rental Property Renovation
When budgeting for a rental property renovation, be sure to add 10-20% to your calculations to account for the hidden fees and unexpected costs that might arise. Be sure to budget for any new tools you will have to rent or purchase, gas for trucking back and forth to the hardware store, any goggles or specialty safety equipment, and the like.
Do Your Homework When Hiring Contractors
If your rental property renovation requires more intensive labor than you have the time or skill for, you’ll need to hire a contractor. As with any other person you hire to service your rental property, you should perform in-depth research before hiring a contractor for your rental property renovation. Check for online reviews and references, and ask your friends and family if they can personally recommend a contractor.
Once you have narrowed the field to a few well-reviewed, qualified contractors, ask each one for a price quote on your rental property renovation. Be sure to ask specific questions about their experience with similar projects to gauge their skill, and inquire about the type of equipment and materials they will use. You want the work to be top-of-the-line, and your contractor should reflect that.
Get Help From National Property Management Group
If you need help with your rental property renovation, consider working with National Property Management Group. We can help you understand the expected amenities of your area and help you prioritize renovations. We understand how minor renovations can have a major impact on a space, and we can recommend experienced contractors to help you with any Miami rental property renovation. Call us today at (786) 358-0013 to learn more.