As a landlord, it’s wise to look for ways to maximize your income efficiently. Maintaining your home with high standards can help increase your rental income in many ways. Sometimes it’s a matter of basic upkeep. There are many types of home renovation that are well worth the cost in terms of ROI!
Keeping the property up to the same standards, you would desire for your own home, is critical. There are many ways to increase income such as minimizing turnover or increasing the rent. If your spaces are kept to the highest standards, it’s much less likely your tenants will vacate. Create a space that has the comfort of a permanent home. This way, it will stand out among other rental properties. At Blueground, our goal is for all our properties to have the look and feel of a home you’d want to stay in long-term. Even if you’re traveling for a short time. We stay on top of local market trends to ensure our properties are maintained and renovated to the highest standards.
When you’re deciding where to begin with renovations, consider your goals. If you’re looking to fill a vacancy ASAP, think about first impressions. Many people view apartments quickly, or just on the internet. This means that you’ll always want to make adjustments when your place looks or feels outdated. Many of these changes fall more under the umbrella of upkeep than major renovation, such as a fresh coat of paint. One should also consider what will help your tenants feel comfortable long-term. Be strategic when looking to make renovations. What you choose to renovate may vary depending on the time of the year, the specific market, and the type of space you’re renting.
Below are several home renovation ideas that will help maximize your rental income:
This renovation is consistently listed as one with the greatest ROI. It’s the first impression anyone has of your home. So, it is an opportunity to make a statement. If the front door appears shabby, the home may also be perceived as unsafe. If it’s an old door, you should ensure that it’s been painted and has secure locks. Replacing your door is one of the cheapest ways to quickly increase your home’s value.
Renovating kitchens and bathrooms is critical. These spaces are often the first that people scrutinize when checking out a space. Also, they’re both critical to the comfort and functionality of any living situation. Let’s begin with the kitchen, which has a higher ROI in terms of renovations. Cabinets are an excellent place to start. Are they both highly functional and stylish? Cabinets are also a lower cost way to give your space a high impact update. If the rest of the apartment is sleek and modern, make sure the cabinets match.
Then, look at kitchen appliances. Are they up to date and functional? If your appliances have special amenities, such as water filters and ice makers in the refrigerator, you can increase the value of your rental property with very little expense on your end. A minor kitchen remodel can go a long way. As for the bathroom, you know that fewer things make prospective clients “Ooooh” and “Ahhhh” more than a nice shower.
Is your shower-head up to date? Do you have a large bathroom sink? Is there ample storage space? This is also a part of the house where cleanliness goes a long way in terms of upkeep and value. While the ROI may be slightly less than those from a kitchen renovation, up-to-date bathrooms are a must in a competitive market like Dubai. A few changes you can make include adding a bathtub, getting designer sinks, new flooring, or building a linen closet.
It may seem simple, but renovating your walls with painting or wallpaper is one of the cheapest ways to increase your property’s value. These are the touches that will help your place stand out so it gets rented quickly. Personalized touches also set you apart from landlords whose spaces are quite plain. So, you’re able to put yourself in a higher echelon of the market, price wise. If you’re simply looking to maintain, ensure that the walls are cleaned, especially between tenants. A fresh coat of paint will work wonders for the look of your place.
Is there something bulky in your space that you could get rid of to give the room more flow? You might consider getting rid of an outdated kitchen island, for example. Oftentimes, there are situations where knocking down a wall can work wonders. That is especially the case if people in your market prefer more open homes. Knocking down the wall that separates your living room from your kitchen might make your property more desirable.
Replace old windows for a boost to your energy efficiency. Investing in windows that help conserve energy will save you money in the long-term. For people who plan to stay in their homes, investing in those projects, as well as in more energy-efficient heating and air conditioning systems and appliances, saves money all year. This is especially important in hot climates. In addition, replacing old windows and doors has been shown to yield a better financial return than massive remodeling projects.
If your carpet appears dirty or out of date, replace it! Old carpets can have mildew, bad smells, and generally, make a nice home appear drab if they’re out of date. In a recent New York Times article, interior designer Jennifer Flanders explains the importance of replacing the carpet: “I’ve done multimillion-dollar apartments with wall-to-wall carpeting in the bedroom,” she said. “I think it’s much more comfortable. It’s warm and inviting.”
One rule of thumb is to repair things before you replace them. This especially applies to keeping things clean and in good working order. Investing in maintenance and repairs not only saves you money in the short term but can increase the value of your space overall. Many brokers say the homes that get the most attention are the ones in the best shape. Renters want ease, not the burden of calling on landlords constantly for repairs. You may find our essential home maintenance checklist helpful!
In conclusion, not all renovations are created equal. It’s important to prioritize those with the highest yield. All homes have different needs. Owners with multiple properties will want to take into account the unique needs of their properties based on specific locations.
If you’re a homeowner who prefers to hand over interior decorating and renovations to an industry specialist, Blueground takes over unfurnished apartments as a primary tenant. Once furnished and updated, Blueground takes care of renting the space out to business executives in Dubai who are looking for medium to long-term accommodations.