Does updating a rental property tend to bring a higher caliber of renter?

[Randy B.]

We have two 4/2.5 SFRs in Murrieta, CA that were built in 1988. They have never been updated so they still have those ugly oak cabinets in the kitchen and bathrooms as well as the old fixtures and plastic shower/tubs in the bathrooms. The tenants just moved out of one of the properties so we are going to upgrade while we have the chance. I have the time right now to do most of the work myself so we can keep the cost down. My thoughts: Upgrade with no intention of trying to get more than average rent (they cash flow enough staying right at or just a touch below market). By updating, I'm hoping to receive more applications for an opportunity to pick the best tenants from a larger pool. Opposing view: We spend time and money for upgrades and still end up with average or below average tenant pool and they end up roughing up the place anyway and undue all the work and money. We need to be more picky when picking our tenants. That's on me. So, between a more thorough screening process and and updated property it seems like we can stop going through the crappy tenant Blues. If anyone has opinions I would love to hear. For those that don't know Murrieta, it's in Riverside Co just north of San Diego and east of Orange Co.

[Chuck B.]

I have mainly SFRs in tougher neighborhoods, C and D class hoods.  However, they're mostly in better streets and are generally attractive or desirable in some special way.  E.g. All brick, some hardwood floors or other charm about them.  I also section 8 some of them, if I can find the right sec 8 tenants.   

I take a lot of grief from other landlords because I fix them up nicely and spend more than they would.  Not crazy nice with granite, and I don't supply ANY appliances, but nice enough that I'd be good living in them (though not the neighborhoods).  For instance... No cheap carpet, three tone paint jobs (ceilings, walls and trim) and sometimes with accent walls, new light fixtures, new ceramic tile tub and surrounds and floors when it's time to replace existing carpet or linoleum.  I also put a nice, hard wired alarm into every unit as I like them between tenants and its a selling point. I've recently started painting the unfinished basement floors as it makes the basements look so clean.  

Folks fall over themselves to rent these places and I have the pick of many decent tenants (section 8 and otherwise).  They also stay for long periods, usually 3+ years each.  

As @Colleen F. Mentioned... A lot of what I do simultaneously hardens the rental too, so it's a dual benefit.  For instance, tearing out an ugly fiberglass tub and surround and replacing with an iron tub and tile surround guarantees I'll have years of low maintenance on those.  Ditto with putting down ceramic tile floor, it's nearly impossible to destroy and easy enough to fix if a piece is destroyed.  

My goal is drama free, maintenance free land lording with tenants who feel lucky to be in the house they're in.  So far, so good.   :)

E.g. Here's a new tile floor that I put down in a section 8 rental.  It covers the ENTIRE first floor of an on-slab house (living room, kitchen, half bath, utility room and closet).  It replaced old linoleum and carpet that was shot.  And sure it cost more, but I won't be replacing it every three to five years, so there's that.  

Happy landlording!

Best,

 - Chuck