What are the best kitchen renovation bangs for your buck?

Question

I've got a 4plex in Lee's Summit, MO just outside of Kansas City. I want to reno the kitchens to increase rents and was told that having nice stainless steel appliances was the best bet. Thoughts?

If so, does anyone have any best practices for procuring appliances? (ie. refurbished, negotiating discounts?)

Seth Borman · Answer

I've found that ready to assemble plywood cabinets and inexpensive stainless appliances will work well. The key is having someone who cares assemble the cabinets, or doing it yourself.

Nathan Gesner · Answer

Stainless steel is a big plus if you're renting to higher-end clients. If you're renting to blue-collar people with kids and pets, I wouldn't recommend steel. It's too easy to scratch the surface, hard to keep looking clean, and far more expensive. Ordinary white works just fine in most situations.

JD Martin · Answer

I'm going to present a different angle: do you have any pictures of the existing kitchens?

Location and SF for the price are the two biggest drivers of rent pricing, not really any different than home sales. You may get a few extra dollars for improvements vs. old stuff, but it really depends - are the existing kitchens totally destroyed and dilapidated? If you have a bunch of dumps, then you may in fact get better rent by renovating. But if what you have is just a little old, you may be spending money for no reason.

Amenities really just give you a leg up on the competition rather than heavily drive prices. Maybe in a ritzy area you'll find people that pay more for granite countertops than laminate, but in a working suburb of Kansas City? I think it's unlikely.

Anyway, if you have some pictures of what the kitchens look like now I bet you will get a lot better advice.

Jim K. · Answer

The biggest bang for your buck in any rental is probably going to be a cut-to-size rubber mat glued to the floor of your kitchen sink base cabinet. Other than that, @Lori Webb laid out two bright ideas that constantly get overlooked. Light colors and a nice little tile backsplash.

Andrew Syrios · Answer

Stainless steel appliances is a big plus. I would also say changing out the countertop as that can really bring a kitchen to life and isn't hugely expensive. Replacing the cabinets can be really costly. But if they aren't great (but also aren't terrible), it makes more sense to paint them and replace the pulls (especially for a rental).

Lori Webb · Answer

@Matthew Kwong

Look at the kitchen overall, where is it lacking?

I feel it’s very important to brighten up spaces. So if you’ve got a dark and dreary space, a good investment is a fresh coat of light paint- whites are great in kitchens. We’ve gotten a lot of bang for our buck with assembling white, shaker cabinets too. Add some new hardware on that and the contrast is gorgeous!

A small section of subway tile as backsplash can really add pop to a space. And, yes, I would go with updated stainless steel appliances. I’ve worked at multiple jobs in Multifamily that give great discounts on appliances. I believe even being a member with BP you can get some price breaks- maybe on appliances!

Steve K. · Answer

Location will determine rent more than kitchen condition or type of appliances, so pay close attention to what the rent ceiling is for the area and be careful not to over-renovate. For example if you can only realistically raise rent by $100/unit because that puts you at the upper end of the market rent for the area, even if you Reno the kitchens on the cheap you will never recoup the cost. Just like when you sell a house, adding a new kitchen will make it more desirable but not necessarily increase the sale price as that is determined by the square footage, number of beds, and local housing market. A new kitchen in a rental might cause your vacancy rate to go down as it will rent faster with a nicer kitchen, but every market will have a rent ceiling no matter how nice your amenities are. Probably not a wise move to spend any more than you absolutely have to in an area where average rent is only $1,000/unit as even if you can demand a 10% premium, you're only netting an additional $100 which will take years to pay off a new kitchen. If the kitchens are decent as-is, I wouldn't do anything. If they're hurting, I would stick to low-cost upgrades such as painting the cabinets, new laminate counter tops, new hardware, new LVP flooring maybe if it's needed but I would not replace anything that is in good working condition on a rental property personally. I spend enough money on unexpected stuff, no need to go looking for ways to spend money unnecessarily.

Kiera Underwood · Answer

I agree with @Andrew Syrios painting the cabinets can go a long way!

Bjorn Ahlblad · Answer

@Matthew Kwong Look at the neighborhood, and the house itself, what are other LL offering; remember it is not what you like that counts; it is for your tenants. Over improving is profit down the toilet. I buy appliances at Amazon, HD etc. Make sure you consider delivery and installation.

Theresa Harris · Answer

@Matthew Kwong  Look at the kitchen first to determine what needs to be done.  Is there a light fixture or cabinet hardware that is dating it?  Are there damaged countertops?  You don't need to replace everything unless it is in poor condition.  When looking for items, remember the target market and that this is not your home, so leave your personal style out of it.

What are the best kitchen renovation bangs for your buck?

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