The end goal is to have a fruitful investment property. You want the most return on investment when you put your property on the market. There are a few things you can do to upgrade your home before leasing out your house.
- Update your curb appeal
- Put in new light fixtures and appliances
- Re-carpet or refinish the hardwood floors
- Paint
“Curb appeal is the easiest and you can most likely do it yourself,” Logan Jeske, Business Development Manager at RPM Iowa says. “Don’t go crazy on it because you have to remember that you’ll be expected to do the up-keep. Keep it clean, sharp, and simple.” Jeske is currently renovating his home so he can rent it out and collect cash flow.
If the house is older and has outdated light fixtures, you can update them for cheap. Look for more modern lighting. This is also something you can switch out on your own for no installation cost. Modern appliances can make a space appear fresh and new.
Look into replacing the carpet if it’s been around for a while. It can up your property’s value and boost your rental rate. Hardwood floors can be refinished or polished. Hardwood floors will likely always be attractive to renters. Taking care of them will give them a new shine and stand out to renters.”
The list above seems simple enough, but let’s dive into five ways to save money while you upgrade your home.
Upgrade your home and save money
It’s possible for you to upgrade your home and save money at the same time. Sometimes, you need to spend a little to make more in the long run. Here’s three ways you can save money upfront while upgrading your space:
- Get shopping estimates
For any kind of upgrade that you can’t do yourself, you’ll need a contractor. You’d be surprised how much rates differentiate from contractor to contractor. Don’t be afraid to let a painting or carpeting company know that you are shopping around. “There are plenty out there for you to choose from,” Jeske says. “But don’t pick one just based off of price, do your due diligence and make sure it’s a good fit for your home, too.”
Use your resources. Ask around to others who have had success with contractors. Check out websites Angie’s List or Yelp to further confirm your decision.
- Refrain from customization
It’s easy to get caught up in customizing a home. Transition your mindset into that of a renter – what would you like the space to look like if you were renting? “Simple is best, especially for renters,” Jeske mentions. “Renters are looking for a modern space with simple colors and appliances, they don’t necessarily want your favorite colors on the walls.”
When you step away from the buyer mindset, you’ll find that you save money, too. Neutral colors in each room will give renters the opportunity to dress it up how they like, and it’s easier on your wallet.
- Have finishes match the property
Easier said than done, but don’t overdo it. You probably don’t need granite countertops or a smart refrigerator. Clean, crisp, and simple appliances are the way to go. “It’s easy to get carried away when you’re doing an upgrade on your home, but don’t under-spend either.” Jeske mentions that it’s important when to recognize that something in the home needs updated. If the home is older and has less-than modern lighting fixtures, start shopping! It’s something you can do yourself.
Flooring, paint, fixtures, and appliances warrant the highest returns for real estate investors. Don’t worry so much about smart home upgrades or custom cabinets.
Get ready for a bigger ROI
Some property owners can be hesitant to make changes before putting their home on the rental market. When you’re selling a home, you don’t necessarily need to re-paint the walls or upgrade appliances. The new homeowner can customize in the ways they want to. Renters are looking for something that is move-in ready, so it’s crucial to neutralize the space. The tips and tricks mentioned in this article will help you save money where you can and in turn, build wealth through real estate.