Renovations/Upgrades to secure a lease?

Renovations/Upgrades to secure a lease?

Member since 2018 · 7 posts · 0 votes

My family has been trying to rent out a condo for a few months now. We have an agent helping us but the leads have not been panning out. The agent has advised us repeatedly that the kitchen is lacking and needs to be tidied up for us to have a chance. We're in the process of changing out the appliances, but we have been further advised that the cabinets therein also need attention and that prospective tenants have commented about it. We have a potential applicant, and we're debating whether to use these further renovations as an incentive to get them to apply and lease. The applicant did not ask about the cabinets at first, that only came up later on in the conversation. Also, all of this contact has been through our agent, so we're not sure if the agent is putting words in this person's mouth to try to make us take action. We are pretty certain the cabinet replacement won't be cheap, and we're not sure if it will contribute that much to the overall value of the property. We haven't been all that impressed with the agent's performance either, and are on the fence about finding someone else to represent us. Admittedly, this is a slow time for rentals, so we're not that surprised interest has been low, but is it worth it to put in this kind of effort to convince someone to commit to a lease? We really want to get this property rented out ASAP, it's been laying fallow for a while now, we just want to make sure we're not making impulsive decisions out of desperation or fatigue.

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Rental Property Investor · Salem, NH · Member since 2016 · 460 posts · 276 votes
7y

Hi Betsy, it sounds like you need to be more realistic with your rent prices. You may find that your condo is not as up to date as competitors in the area and thus you will need to drop your prices. If you end up doing the renovations then you can again adjust your rent prices.

I believe any apartment/condo can rent...renovations or no renovations...it's just a matter of finding your rentals value.

Good luck!

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  • Rental Property Investor · Salem, NH · Member since 2016 · 460 posts · 276 votes
    7y

    Hi Betsy, it sounds like you need to be more realistic with your rent prices. You may find that your condo is not as up to date as competitors in the area and thus you will need to drop your prices. If you end up doing the renovations then you can again adjust your rent prices.

    I believe any apartment/condo can rent...renovations or no renovations...it's just a matter of finding your rentals value.

    Good luck!

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    7y
    Originally posted by @Betsy Yang:

    My family has been trying to rent out a condo for a few months now. We have an agent helping us but the leads have not been panning out. The agent has advised us repeatedly that the kitchen is lacking and needs to be tidied up for us to have a chance. We're in the process of changing out the appliances, but we have been further advised that the cabinets therein also need attention and that prospective tenants have commented about it. We have a potential applicant, and we're debating whether to use these further renovations as an incentive to get them to apply and lease. The applicant did not ask about the cabinets at first, that only came up later on in the conversation. Also, all of this contact has been through our agent, so we're not sure if the agent is putting words in this person's mouth to try to make us take action. We are pretty certain the cabinet replacement won't be cheap, and we're not sure if it will contribute that much to the overall value of the property. We haven't been all that impressed with the agent's performance either, and are on the fence about finding someone else to represent us. Admittedly, this is a slow time for rentals, so we're not that surprised interest has been low, but is it worth it to put in this kind of effort to convince someone to commit to a lease? We really want to get this property rented out ASAP, it's been laying fallow for a while now, we just want to make sure we're not making impulsive decisions out of desperation or fatigue.

     If you are a few months into this something is seriously wrong. You are either way off on the price or the unit needs renovations.

    Post some photos of the kitchen you are talking about so we can see if your unit is in a rentable condition. If it is then all you need to do is lower the price.

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    7y

    Yes ,Nov/Dec is a slower time especially in colder regions but it sounds like you have been on the market longer. where is it located?  at the same price the entire time?  How does price/condition compare to other rentals in the area?  If it had alot of showings and people are not taking it condition is probably a factor.  

    If you post a picture of the kitchen it will help to see if it is a potential issue and what options you might have to fix it.    You want to figure the cost of the reno in your return on the rental and what you might consider doing will be different depending on the price point of the rental.  If you don't have a lot of linear feet of cabinets you can keep the cost down. Also keep in mind if you replace a dishwasher or a built in stove/oven  it will be easier to replace cabinets before.  You can reface, paint, replace or do nothing.   For a larger reno it might make more sense to drop the price then renovate, that said if you significantly reno I would start fresh marketing it. I would not use the reno as an incentive.

  • Member since 2016 · 13k+ posts · 12k+ votes
    7y

    My guess it that your problem is the agent not just the time of year. Try a new agent, or better yet, advertise yourself.

    Based on the timeing you will likely be looking for a tenant to move in for February 1st. Forget about January, any tenant looking for January is probably in the throws of being evicted.

  • Member since 2018 · 7 posts · 0 votes
    7y

    Thanks everyone for the input!  We really appreciate it.

    For context, this condo is in MD near DC, just off a major highway. We have come down on price since the initial listing, in part because it's been slow and the winter slump is real. We checked other rentals on Zillow, both active listings and other comparable condos in the same development as ours, our rent appears to be competitive.

    Our agent says we have been getting showings every week but no applications (mind you, we have already switched agents once during this process). We believe we were referred to this agent because of her expertise in this geographical area but communication has been erratic and she has been increasingly "noisy" regarding the state of the unit.  If we want to change agents again, what would be the ideal timing to make that transition?  We welcome any recommendations in the MD/DC area, either directly from folks here or a link to another subforum.

    As far as the cabinets themselves, they look fine in the pictures (attaching a photo of one side of the kitchen to give a sense). Our PM didn't put a number on it but has said replacement is the only practical course of action. We can't reface them, it's basically just a laminate front, painting is an option but it would run us about $500 and we're not sure how it would look. On top of that, we're replacing the range hood, so would we be better off holding out, making a deal on the rent with this potential applicant, doing the painting, or biting the bullet and doing an outright replacement?

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    Where specifically in Maryland is the unit, and what is the price point, and how many bed and bath?

    Honestly a kitchen like that is what Id expect in a $1200 a month 2 br in like Germantown or southern PG county.

  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    7y

    Before you decide anything you need to get down to the facts. And you can't rely on other people's opinions for that. Something is seriousley off and you need to know what exactly. 

    Step 1 in my book would be to shop the competition. Find out what everyone else is renting and for what price. Yes, that means you have to make appointments and go look for yourself as if you were a tenant. It will become clear to you very quickly how your place competes on the market.

    Step 2 will be to adjust either the condition or the rent. Changing cabinets is not a big deal and can be done inside a week. You may opt for LVP flooring and laminated tops (unless your price range and competition dictates granite). Do NOT buy the cheapest cabinets or cheapest flooring or cheapest faucet/appliances etc. Go mid range, stainless steel etc, labor will be at least half of your reno and you'd waste it on cheap materials.

    Step 3 have professional pictures taken. I pay $70 for professional real estate photos and regardless if I list a property or advertise a rental we have just renovated. Good pictures are key and you need a pro with a wide angle lense. We advertise on Zillow, which also populates Trulia and Hotpads - for free.

    I recommend you host your own showings for first hand experience. Complete background checks and everything else you need you can find on a service like cozy.com

    Good luck!

  • Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
    7y

    I have similar cabinets in my apartment building. I have refaced some of the into white shaker style and they look awesome! How is your hood vent? In the picture it looks a little rough. I know that can make the kitchen appear dirty or old. Those things can get really gross. Maybe switch that out.
    As far as the cabinets, you can take the doors off, add a shaker front, prime with oil based, paint with cabinet paint, and seal with poly. I also added nice knobs. I painted the boxes but not the inside. Here are during and after pics of mine.

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    7y

    Unless the boxes are shot or it is a high end condo, paint as suggested above, converting cabinets to a shaker look. Replace the hood and loose the fake brick, subway or glass would look less dated. Although there are some less expensive backsplash options too.  It would not cost a ton and it will give you a very updated look. 

  • Member since 2018 · 7 posts · 0 votes
    7y
    It's in Gaithersburg, MD, very close to 270 and 355. One bed and one den, one bath. The listing price is $1,190. How do you think of this price?

    Originally posted by @Russell Brazil:

    Where specifically in Maryland is the unit, and what is the price point, and how many bed and bath?

    Honestly a kitchen like that is what Id expect in a $1200 a month 2 br in like Germantown or southern PG county.

  • Member since 2018 · 7 posts · 0 votes
    7y
    We actually decided to paint the cabinet, change the hood, and also do some work with the stove.
    After seeing this original picture of the kitchen, how do you think of price vise? or it's just timing?
    Thanks 

    Originally posted by @James Wise:
    Originally posted by @Betsy Yang:

    My family has been trying to rent out a condo for a few months now. We have an agent helping us but the leads have not been panning out. The agent has advised us repeatedly that the kitchen is lacking and needs to be tidied up for us to have a chance. We're in the process of changing out the appliances, but we have been further advised that the cabinets therein also need attention and that prospective tenants have commented about it. We have a potential applicant, and we're debating whether to use these further renovations as an incentive to get them to apply and lease. The applicant did not ask about the cabinets at first, that only came up later on in the conversation. Also, all of this contact has been through our agent, so we're not sure if the agent is putting words in this person's mouth to try to make us take action. We are pretty certain the cabinet replacement won't be cheap, and we're not sure if it will contribute that much to the overall value of the property. We haven't been all that impressed with the agent's performance either, and are on the fence about finding someone else to represent us. Admittedly, this is a slow time for rentals, so we're not that surprised interest has been low, but is it worth it to put in this kind of effort to convince someone to commit to a lease? We really want to get this property rented out ASAP, it's been laying fallow for a while now, we just want to make sure we're not making impulsive decisions out of desperation or fatigue.

     If you are a few months into this something is seriously wrong. You are either way off on the price or the unit needs renovations.

    Post some photos of the kitchen you are talking about so we can see if your unit is in a rentable condition. If it is then all you need to do is lower the price.

  • Member since 2018 · 7 posts · 0 votes
    7y
    Hey Jennifer, your cabinets look awesome!
    Yeah, the hood looks not so good. Therefore we actually changed the hood, and do some work about the stove. We end up choosing paint the cabinets. 
    How much "refaced" cost for cabinet?


    Originally posted by @Jennifer Rysdam:

    I have similar cabinets in my apartment building. I have refaced some of the into white shaker style and they look awesome! How is your hood vent? In the picture it looks a little rough. I know that can make the kitchen appear dirty or old. Those things can get really gross. Maybe switch that out.
    As far as the cabinets, you can take the doors off, add a shaker front, prime with oil based, paint with cabinet paint, and seal with poly. I also added nice knobs. I painted the boxes but not the inside. Here are during and after pics of mine.

  • Member since 2018 · 7 posts · 0 votes
    7y
    Yeah, we actually end up paint the cabinet, change the hood and put some work on the brick wall. It actually looks nice.
    Hopefully it will help rent out.

    Originally posted by @Colleen F.:

    Unless the boxes are shot or it is a high end condo, paint as suggested above, converting cabinets to a shaker look. Replace the hood and loose the fake brick, subway or glass would look less dated. Although there are some less expensive backsplash options too.  It would not cost a ton and it will give you a very updated look. 

  • Rental Property Investor · York Haven, PA · Member since 2018 · 49 posts · 39 votes
    7y

    Lots of great ideas!

    @Jennifer Rysdam, great ideas on updating the cabinets!

    @Betsy Yang, post some pics when you get a chance.  Good luck! 

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    7y

    @Betsy Yang  post those pictures when you get a chance. 1. so you have them when you go to advertise for the next tenant    2.  so we can take a peak and tell you how much better it looks!

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