What do you rehab to attract quality tenants and increase rent???

Question

I'm closing on another property this month.  The kitchen is 1987/tenant abused and the floors are carpet/linoleum downstairs.  Upstairs is all carpet and baths are linoleum.  I'm curious what other landlords do to upgrade (inexpensively) and attract quality tenants at a slightly higher market rate.

Jose Efren Orozco · Answer

Adding to Peter Spiro's comment:  Replacing carpet with inexpensive laminate wood flooring will give the house a distinct, upscale look. Costco, Lumber Liquidators and Home Depot have laminates at discount rates. You can find installers on Craigslist or Angies List. If you're feeling adventurous and have the time and hardware, you can do it yourself.

Dan Perrott · Answer

Bryan N. I have been going through this and have been removing all carpeting and  installing laminate flooring (wood look).  It has enabled me to get renters quicker for a bit more rent.  With the low cost of the laminate, it has worked out very well.

I also look at it this way...  If I don't have a renter for a month, I am loosing that income.  I spend on the upgrades and it has always paid out in the long run.

Josh L. · Answer

This is like asking how you can do something that will be fast, cheap, and good. You can choose to be two of the three, but not all three.

Its unrealistic to expect to get away with inexpensive upgrades that will attract quality tenants at slightly higher market rate.

Painting is inexpensive and probably the biggest bang for the buck, but that's not going to bring in higher market rate.

To get slightly higher market rates, you'd probably have to significantly upgrade your place where its much nicer than the competition. You'd probably need to concentrate on the kitchen and bath. But, that won't be inexpensive.

And, if you want quality tenants, I've found that you usually need to price it below market rates so there are a whole bunch of applicants where you can choose the best applicant. Unless the place is super nice, a applicant is going to pay above market prices cause he's been rejected by other places and is thus willing to pay more to rent your price.

Jay Hinrichs · Answer

Bryan N.

my TK guys that I fund go all out... Slab Granite kitchens and baths undermount sinks stainless appiances 3 color paint jobs.. refinish hardwoods full TILE bathrooms including tub surround and shower..  Nice light package and ceiling fans.  Of course they get great prices because of volume and in the long run these homes. However their homes are never empty...

Bryan N. · Answer

I was thinking the same things most everyone else in this forum mentioned.  I did not think of light fixtures though.  I think the key points are flooring (laminate or vinyl plank) and updating the kitchen.  I don't care for carpet on the second floor and the stairs, but I don't think there are very many alternatives for that.

Elizabeth Colegrove · Answer

What type of tenants are you hoping to attract? When we redid our house in the Redmill area of Virginia Beach we over renovated it with a duel head bathroom shower, and many other features because we thought it would be a personal longer than it ended up being. Thanks Navy :) The one thing I will say is we left the original kitchen just pained all the cabinets a nice cherry. IT looked amazing and costed $200 including new hard wear. We also repainted and kept a nice neutral painted job and put brand-new neutral carpets. It really depends on the area. Redmill still has alot of lament and is older.

What is the area and the price range (house and rent) of Virginia Beach? I happen to know that area pretty well. While everyone loves stainless steel and granite. Not every area needs it to get max rent. We have found that there is that sweet spot on the bell curve/

Peter Spiro · Answer

I have found that wood-look floors are a great (and not expensive) way to upgrade a unit and attract better tenants.

Colleen F. · Answer

Depends on the area.  Unless you have a historic home one thing is to lose the dated feel. Painting, changing light fixtures and updating appliances goes a long way it will get you rented quicker and it may get you a bit more then if the house has that tired look. As for upgrades tenants will pay for. I would agree with the previous poster who said kitchens and baths factor in and I would add that in our area laundry, they like a washer/dryer included.

Shawn Mcenteer · Answer

Very location orientated question. The answer will pend on what is working in your particular area,  I suggest you look at other rental units on the market to see what they are doing to attract highest rents.  For your particular unit try to go slightly better and list it at a similar price to your competition, this will make your unit a hot commodity.  As for what is most appealing to renters/homebuyer; updated kitchen and baths are first concern for most.

What do you rehab to attract quality tenants and increase rent???

Most Popular Reply