Rental property renovation question?

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A few of my inexpensive ideas to uplift a unit: If you have floor registers, replace old worn ones with new ($5). Put a strong decorative curtain rod in the living room; make sure it is easy to clean, meaning smooth - not intricate - ends. And make sure it is the kind that will be easy for the tenant to use when putting up and taking down curtains. ($30 or even less at a thrift store/garage sale). Put regular curtain rods in the bedrooms, but make them the double type and make sure they are anchored well. Allows for a privacy sheer curtain on one rod and a decorative on the other. ($3) Note, if you have no curtain rods, the tenant will nail up their own and may nail into your nice wood casing! Replace old mini-blinds with new, or clean/repair existing to look like new. ($20 or less). For large windows, consider two or three smaller ones rather than one large one. Blinds that are too wide are hard to use and more prone to damage. Upgrade the light fixtures. ($10 or more) We do an unusual thing that sets us apart. We supply lightbulbs for the duration of the tenancy. Impresses the tenant and keeps the right kind of bulbs in our fixtures. No more large bulbs where an appliance bulb should be. No more 100 watt bulbs burning out fixtures and wiring. Our local electric utility company will exchange burned out CFLs with new for free, up to 6 at a time. No limit. CFLs go into most of the fixtures, a few have specialty bulbs. If the tenant wants the old fashion kind, we give it to them. They still pay for the electricity, so they usually opt for the CFLs. Cheap investment, good insurance, good marketing ploy. Replace cheap bathroom ventilation fans with good quality- low sones, high CFM. Tenants don't like noisy fans. If the air is moving efficiently, the moist air will be quickly removed. ($100) Exterior door hardware should be durable and always look new. Brushed nickel holds up well. The gold colored kind does not. If the door handles show significant wear, it will be noticed as they are touched everyday by the tenant. ($20) Light switch and outlet covers are inexpensive to change out. Replace all cracked ones or old fashion ones with crisp new ones. Make the set screw line vertical - a trick electricians do to make the install look clean and pleasing to the eye. ($1) I will invest in safety features and point them out when I show a unit. All tenants value safety. Also, I will invest in energy efficiency and point out energy saving features to prospective tenants. Good insulation, no single pane windows. Make sure the whole unit is CLEAN and smells good. For all turns, make sure the exterior entry is spotless. Knock down those cobwebs! Clean those steps! Put down a nice doormat. First impressions make a difference!

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I will second @John Chapman on this one, although others have a good point too. You don't want to overimprove. But to me, this means you don't want to make marginal improvements that aren't worth all the added financial - direct and indirect costs. One of my first real estate agents (back when I used one) taught me a lot about "pride of ownership" and what kind of tenants you get, especially in lower-income areas. I have received significantly higher monthly rents, and better-quality tenants than the average tenant in my lower-income neighborhood in the Bay Area. There's not only the increased revenue. But I think over the longer-term, I'll see less turnover, shorter vacancies when I do turn over (2 days vacancy on last unit turnover b/c I worked with the tenants to show the unit in their last month), less volatile tenants that can cause damage/eviction costs, etc. Plus less headaches for me since I landlord all my properties. I also agree that having at least one nice feature helps get the unit rented. One of my rehabbed units had a beautiful tiled shower before I started. The other had a vanity needing replacing, so I shelled out an extra $80 for a nicer-than-neighborhood espresso vanity and medicine cabinet. I always put nice-looking vases I got for nothing at goodwill with fresh flowers from the property/neighborhood in them, in the kitchen and bathroom, as a finishing touch. One woman fell in love with the bathroom with the shower and not having tenants below in case of noise w/ child (garage below). Another fell in love with the vanity and mirror setup in bathroom and big closet in master in the other unit. Both smelled the flowers in the vases. But the upgrade costs practically nothing relative to the benefit in this case.. Countertop upgrades, laminate vs carpet, buying nicer used appliances rather than crappy cheap new ones (if you already have to replace these..) can all make sense IMHO.

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@Marc Steinert, I generally agree with not overdoing it, but I think there should be one or two features that make your property stand out from the competition, particularly if those features increase the durability of the property. For example, if the rent is over $1100/month for one of my SFRs and I have to replace the counters, I usually do granite now. I do this because (1) tenants absolutely love it; (2) it's very durable; and (3) it's not that expensive, relatively speaking. It's kind of a no-brainer for me. I don't do stainless steel appliances, however, because they get funkier quicker than black appliances, and the granite is such a pop, no one seems to care. (Note, if I had a super high end rental, I might end up doing stainless.) If you always take the cheapest route or remodel your units to simply match the market, you will have a harder time renting your unit. The rental market is like any other market, and you have to offer a good product at a good price to compete. (I cannot stand the It's-just-a-rental mentality/approach to remodeling, which I equate to putting in the cheapest junk and ignoring durability or quality) Flooring is another area where you can spend a little more, get a nicer product, and get more durability. (Increased durability also decreases vacancy rate, in my opinion, since the unit stays nicer longer.)

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I don't mean to sound like a jerk - stop watching TV to learn how to invest in real estate! There are a couple of TV shows that I have watched and laughed at as the numbers clearly don't work, but they say how great an investment adding granite/stainless/etc. is. Time to get your hands dirty - network with landlords in the area you are looking to invest, see what they are doing. Go look at vacant apartments, see what your competition is. You don't have to be a slumlord to stand out. I invest in mostly in lower middle class (including common public assistance tenants). You would be surprised at what simply offering a clean place will do. I have a number of competitive landlords around me and I like to think I have a good reputation around because I run my operation like a business. I occasionally get the "ew's" when I have decided to go one more tenant before replacing carpets, but they are cleaned even if they do show moderate wear. Many of my cabinets are 30+ years old, but they were built 100 times better than the crap being sold today so they hold up to more abuse! My repairs and improvements are durable. I use VCT in kitchens and baths when I replace the flooring because it lasts way longer. I use 2 colors and we create "patterns" to add extra wow for the same amount of money. I buy middle of the road bath/surrounds that don't require caulking because they look nice AND are much less prone to leak and cause water damage. I buy middle of the road carpet because it wears longer and cleans up better. I buy used appliances because I can buy middle of the road appliances (more features) for less money than a low-end new one and it is going to get just as trashed as the new one that I spend more money on. If you think and act more creatively than your competition, you and your units will stand out without having to spend more money. Go for durable and longer lasting with a decent appearance versus "as seen on TV".

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Regardless of price point you should remain consistent with the other houses in the neighborhood. If the typical home there has laminate, there is no benefit to putting in granite. The same holds for the appliances and everything else. As a buy and hold investor your goal to is minimize costs to help you maximize profits.

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when I buy a property the first thing I look at is big items,,AC/Heat, if its old and may cause problems I replace it, it saves the tenant and myself problems (and I make sure and note to tenants it has a new AC/Heat unit and that will save them money on utilities). I use vinyl plank floors in any traffic areas, more expensive than carpet, but it looks great and holds up extremely well. I have granite in one house only because it came that way,, I just don't trust some tenants to treat it right (like stand on it and crack it). I change our all light switches to the new 'rocker' style, and all plugs with the square style,,cost is little, looks great and helps moderize the house. I change out most ceiling fans/lights especially in living/kitchen areas that people see a lot. A new light fixture in the kitchen or living room can make a world of difference. I change out appliances on a new purchase unless they are like new,,,I'd rather spend $250 putting in a new dishwasher now while its vacant, than in 6 months with someone living in it and complaining

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Keep in mind that this site has investors of all skill levels and in all different kinds of properties/markets. The properties/markets that you should be most concerned about when making choices are your own properties in their respective markets. The question I ask myself as I go through a recently vacant unit and figure out what to do to get it ready to rent is "is this good enough to rent again?" I also pick out the single biggest current problem within that unit every turnover and fix it before I rent it again. I try to only do one bigger project to help maintain a budget, but doing this as a regular practice has been very effective in improving the overall quality of my rental units as well as vastly reducing service related issues. As an example, a recent 1 BR we made ready to rent had an older multi-piece shower unit in a bathroom with older sheet vinyl flooring. The shower leaked, creating water problems and the floor looked like garbage. We replaced the shower stall with a 2-piece fiberglass unit that doesn't require caulk (using a unit that I salvaged from a rehab of another unit several years ago and had in storage) and replaced the floor with VCT. Looks great and didn't cost a fortune. In the same apartment, I decided to push carpet replacement one more time to control my budget and cleaned them instead using a commercial cleaner. Are the carpets perfect, no. Will some prospective renters comment? Possibly. But as an owner, I first addressed what would be a future problem for me by replacing the shower unit. While I was at it, I replaced the floor because it was the easiest time it would ever be with the bathroom already ripped apart. The unit will rent this way and it is "good enough" for my market. Maybe next time the carpets will be my biggest objection. We did freshen up the paint and rest of the unit while in there. Good luck!

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Buying my first rental property (duplex) where I'll be living in one side. This thread has been awesome for trying to figure what I tackle first..and where to best spend my money on making the unit rentable ASAP.

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@Colleen F. I'll definitely check them out, thanks

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For one property we picked up some second hand corian and refabbed-very durable. I am also a fan of buying a kitchen display if you need to rehab the kitchen. You get some bells and whistles without paying big bucks. @Marc Steinert I see you are in NJ (one of my favorite states!), check out green demolitions in Farfield NJ for used kitchens , they are online too with pictures. Some deals, check often. Visit for the stray cabinet as the website is not up to date for those. Habitat too. Good luck!