10 year old rental: what to do next

[Kevin Polite]

My first rental is now 10 years old. When I first purchased and remodeled it was at a little higher standard then most in that area because I could see it was changing. It had a higher rent and usually rented in days. Fast forward 10 years and the competition has increased, but so have rents and values. It now takes a little longer to rent and the competition had granite counter tops with upgraded kitchens & baths. 
is it time to sell & put the money elsewhere, do some higher cosmetic upgrades or just let it be and have lower the market rent increases?

[Bill B.]

If it’s truly only the difference in finishes, think about how many updates you could make for the cost of selling. Granite countertops are almost free these days, drop in some new stainless appliances, maybe freshen up a bathroom or two. You’d be hard pressed to spend $15,000 and unless your rental is worth less than $200k you’ll spend way more than that selling. 

But make sure you’re going to make at least an extra $200/mo so you get your money back in 6 years. Otherwise, there’s no problem with being the cheaper alternative. Some renters would rather save $200/mo than have granite countertops in a property they are just renting.

Mc Donald’s and Walmart aren’t the stainless steel and granite countertops of their industries, but they’re doing just fine. If there’s an economic downturn people will appreciate your cheaper rent, just so it doesn’t look rundown or beat up.