Updating Rental Unit

[Guevara M.]

Not real sure what to do in my situation & would like the advice of more experienced landlords. I have one rental property which is just a 1 bedroom, 1 bath town home/condo. It is a upstairs unit & is about 600 sq/ft. When I first purchased it back in 2005 I went through & gave it a quick, cheap make over. Replaced the carpet, toilet, vanity, sinks & paint throughout.

I've been into the unit that is downstairs from mine which is also being rented right now & it looks really nice compared to mine. Laminate wood flooring, updated appliances, tile floors in the kitchen/bath & paint. My unit looks old & outdated. I have white walls everywhere, maroon carpet, vinyl laminate flooring in kitchen/bath, old appliances, old looking kitchen counter tops, old wood cabinets, etc...

I started a thread a few days back about raising the rent because I am charging about $100 below average of all the other units in the same complex & it got me thinking if it would make sense to finally go in there & update the entire unit then start leasing it for the average price or higher.

Some things I would like to do is replace the old windows with new energy efficient ones. Only 5 windows in the unit. Also new flooring throughout with tile, update the kitchen cabinets, replace the kitchen counter tops, update the kitchen appliances, knock down the popcorn ceiling, paint throughout, etc...

Is this a good or bad idea? It is currently rented right now for $565 a month. I can probably just replace the windows & raise the rent to $600 & still keep the same tenant in there. Anything over $600 & she will probably leave. If I update the unit I would ask $685 for it. What do you guys recommend?

Thanks!