Business How property managers can spend wisely on renovations Ana LopezDecember 13, 20220349 views Owner of Property management Rhino Vastgoed and Rhino Realty B&B, entrepreneur, investor, consultant, author and speaker. getty As a property manager it is important that your property looks attractive to potential tenants, because you only get one chance to make a first impression. Tenants often view many properties in one area, so you need to create a space that stands out. However, that doesn’t mean you can only use the best or most expensive materials. It’s easy to go overboard with real estate updates in the hopes that you can attract good tenants and command a higher rent. While this can sometimes be the case, there are some updates that I’ve found don’t always pay off. Familiarize yourself with other rental properties in your area before planning any renovations. Pay attention to the floors, appliances, and updates they’ve made, and update your property to be in line with them. It’s also important to know how much rent your market allows. No matter how much you spend on home improvement, there will be a limit to how much rent people in your area are willing to pay for a space. This number should guide all decisions about your renovation plan. Below are five parts of a rental property that can get expensive during the renovation process, along with my tips for cutting costs. Table of Contents kitchenBathroomFlooringlandscapingWindows and doors kitchen As we all know, it’s easy to get out of hand with kitchen renovations. If your home is in a high demand area, spending a lot of money upgrading to the fanciest cabinets and countertops may not be the best use of your money. There are a number of cheaper upgrades that can make your kitchen look new and modern without breaking the bank. In my experience, the average renter usually doesn’t expect high-end countertops in a rental home, so you might want to consider choosing a nice laminate material instead of stone countertops, for example. A good rule of thumb is that if your potential tenant isn’t willing to pay more for it, don’t upgrade. The same goes for high-end devices. While you don’t want to buy appliances that require a lot of maintenance, your renters probably don’t expect the best appliances on the market either. Make sure the devices you choose look new and are reliable; in addition, you can save money by buying a cheaper model or by buying them lightly used. Since the kitchen is usually the focal point of the home, there’s no doubt that having an updated, modern, and clean kitchen will help attract renters. Use some of the money you save on stone counters and premium appliances to paint and put new handles on your cabinets. Small, cheaper solutions like these can go a long way in making a positive first impression. Bathroom In the bathroom, good quality pipes, fixtures and toilets are where I recommend focusing your investments. This can help prevent maintenance issues down the road. Repeatedly repairing your bathroom appliances can become extremely costly because if they break, they usually need to be repaired immediately. If you can find them, there are some nice commercial fixtures and toilets that are made to withstand heavy use. While they may cost more up front, I think these could be worth it when it comes to having to pay for the maintenance to repair or replace them. Tenants are looking for clean, updated bathrooms. No one wants to get ready in a dingy, moldy bathroom, so you may need to spend some time and money here. However, from my perspective, this doesn’t mean you have to make a lot of fancy upgrades in the bathroom. Dual showerheads, glass shower doors, and floating sinks can make your rent look luxurious and expensive, but keep in mind that they don’t necessarily guarantee you’ll be able to charge a higher rent if the potential tenants in your area are just not willing to pay more for them. Flooring Many apartments have carpeting because it is relatively inexpensive and easy to replace. Plus, it’s what people used to expect in apartments. But I’ve found that the problem with carpeting is that it usually needs to be replaced often enough that the savings aren’t always worth it. If you plan to keep your rental for a while, consider installing vinyl flooring instead and using medium-quality carpeting in the bedrooms. In my experience, potential renters are often just as happy (and pay the same rent) with a vinyl floor in a woodgrain pattern, unless you have a very high-end rental. landscaping Curb appeal is extremely important for attracting quality tenants. That doesn’t mean you have to spend a fortune on landscaping. The front and backyard should look tidy so that tenants can envision friends and family coming to visit their new home. You may also run into a problem if you install complex landscaping that your tenants are unable or unwilling to take care of. For this reason, I believe neat, simple front and back gardens are the best way to go. They can be maintained easily or at a reasonable cost, and they are a blank canvas for tenants trying to imagine living in your rental. Windows and doors Since windows and doors can both have such hefty price tags, make sure you really need them before making the investment. Is there a way to fix a broken window or door? Do they just need to be painted? If there’s a way to use the doors and windows you have, you can save money and keep your tenants happy. The bottom line is that you don’t want to invest money in your rent that you won’t get back by charging rent. Evaluating all updates and renovations through this lens can help you save money, have a great rental property, and attract quality renters. businessroundups.org Business Council is the premier growth and networking organization for entrepreneurs and leaders. Am I eligible?