What is too much rehab for a rental property? Is that even a thing? That's a question that many landlords have asked themselves when they're trying to decide what type of renovations they should do to increase the value of their rental property.
However, it's a common misconception that more is always better, which isn't necessarily true. The best Atlanta Georgia property management companies recommend renovations projects to increase value in your rental properties the right way! In this blog post, we discuss the pros and cons of overdoing it with renovation projects so a property owner can make an informed decision on whether the result is worth the time and effort.
Is There Such a Thing as Too Much Rehab?
Short answer? Yes.
It may surprise you to learn that increasing a home's grandeur does not always translate to more rent. Property owners must keep in mind that what renters desire might be quite different from what property owners believe tenants want in a home.
Before starting an extensive renovation project, doing a little homework can save budget dollars and lost rental income! Check with an Atlanta, Ga. property management company to learn more about what renters look for in an ideal rental home in the area.
What Do Renters Want?
A critical thing that renters look for in a home is affordability (without sacrificing too many amenities). Unfortunately, for many individuals, high monthly rental rates can keep them from an ideal rental home. While tenants want to live in a home that has modern amenities and can feel comfortable, price is still a major factor in their decision of where to live.
That's where "too much rehab" can impact occupancy rates and rental income for investors. Many renters would rather live in a less expensive home than a luxurious home they cannot afford. Keep this principle at the top of your mind as you explore renovation options. An experienced residential property management company can provide insights into what renters are looking for in a rental house and how potential upgrades could affect rental pricing for your property.
Start with a Small Project
A rehab project should improve your return on investment. However, spending too much on the project could drain your finances. That's why it's important to choose your projects wisely! Property managers recommend:
- Looking for ways to make a statement without doing a complete remodel. Small projects can make a big impact!
- Improving security features, like upgraded exterior lighting or installing robust locks (or smart locks).
- Make high-speed internet available. With more people working from home, a strong internet connection might be a good investment.
- Look at the current appliances and see if any can be upgraded or replaced for less money than a full kitchen renovation.
- A fresh coat of paint can also make a big difference!
Starting small and asking property managers for help before beginning a massive renovation project can help investors avoid an upgrade that may not pay off with increased monthly rent payments.
Choose ROI-Boosting Renovations
Not all renovations required a significant construction project. Helping your property stand out from the competition is often good enough to attract quality residents and boost ROI. Modifying the home to make it an ideal rental for residents with disabilities can be a smart upgrade. To make your investment property handicap accessible, you may need to upgrade bathroom facilities, widen corridors, construct ramps, and adjust cabinet and shelf heights.
Considering pet-friendly properties can also boost income! Sixty-seven percent of American homes have a pet. Fencing the yard, installing pet-friendly flooring, or adding a doggie door can make your real estate investment property attractive to pet-owning tenants.
Repairs Are Not "Upgrades"
Some improvements like new plumbing or electrical wiring are considered repairs, not upgrades. While these repairs are essential to keeping your property secure and functioning well, renters might not see a repair as a renovation that makes your property more attractive or worth a higher rental rate.
Work with an Atlanta, Ga. property management company to identify needed repairs (and avoid a maintenance request) and smart upgrades to find and place better residents!
Talk to a Property Manager Before Renovating
Before undertaking a renovation project, the first step is to get help from the experts. The best Atlanta property management companies can advise measures that will have the most impact on your rental revenue in the Metro Atlanta area. Since they have experience working with area contractors, property management professionals can also help you find contractors to deliver excellent upgrades at the best prices.
Tackle Rental Property Rehab With the Best Atlanta Property Management Company
Property owners must work through the pros and cons of a renovation project to determine what is best for a rental property. Revolution Rental Management has the experience to increase ROI on your real estate investment with insights into just the right amount of rehab for rental properties! Let's talk soon about how our property management services help real estate investors find better renters and improve returns.