Best Rental Upgrades to Increase Rents

[Alicia Katnik-Canney]

What are some of the best upgrades to make on a rental property in order to increase rent? Our unit is in the worst shape of all 4 and therefore is rented for the least in the complex. This is our first rental and it is hard to not get excited about making it nice. I need some advice about what makes sense when upgrading. Thanks in advance!

[Mike H.]

I think you're seeing some of the patterns here and I will pile on as well.

Here is what I would do to get the most bang for your buck.
Paint is first. Hit the trim too. Do a nice neutral tan or gray with white trim and the thing will pop. New electrical devices and plate covers (switches, outlets, etc). New $5 white blinds.
Light fixtures.  

Then I'm a big believer in two things:
1) Fix the worst features in the house to turn the biggest negative into a positive.
2) Over-upgrade at least one or two items - no matter how minor - so something in the house POPS!  It can be a couple really nice ceiling fans. A granite top in one of the vanities. A really nice tiled in bath/shower.  Maybe some crown moulding in the master bedroom and entry room (livingrm or family rm depending on the house). A backsplash in the kitchen.

Not saying do all of that. But depending on the house, do one or two of those. When I'm showing houses and I can have those 2 items in the house to really sell it, my close rate is 10 times better than when the house has nothing special in it.  It may be very nice but having one or two features above their expectations can really bring the rest of the house up significantly.

I personally like having one feature in the entry room and one in the kitchen if I can. Those are really the two rooms that people notice. First impression when they walk in. And the kitchen.  

And I know that people say that bathrooms and kitchens sell homes and that applies to rentals too. But I haven't gotten anywhere near the positive feedback on the bathroom stuff I've done compared to the kitchen stuff. So I would always say kitchen first.

Maybe some updated countertops. If you get the in-stock laminate and your contractor knows how to make the cuts, its not very expensive at all. But it can really bring your kitchen up quite a bit if you have some dated countertops in there today.

btw: I agree with some of the posts on that one rental. Wow. Looks like a model home there. Well done. And I bet you have an incredibly high occupancy rate on your homes too.

That is the one lesson I think we all learn quickly. Don't be cheap with rentals. You're not saving yourself money.  Cheap/poorly rehabbed rentals are going to have high turnover. And turnover is the root of all evil when it comes to buy/hold investing.

Make it right. Don't make it new (or you'll go broke) :-). But make it right. And if you can make it look like @Hilary Tuttle did there - do it. You'll get your money back and then some in the long run.....