Which Two Will Fetch a Higher Return?

Question

If your budget will only allow 2 of these, which two will command a higher rent in your B-/C+ class neighborhood LTR rental?

A. Remove carpets on stairs, hallway and bedrooms, replace with LVP

B. Tiled backsplash and granite countertop

C. New stainless steel appliances

James Hamling · Answer

Piggy-backing on what @Nathan Gesner said;

I find S.S. does not hold a ROI in standard rentals, vs black appliances. Black is a lot cheaper, and we do see ROI vs white.

All common areas of high/regular traffic, LVP and tile hands down. You get minimum 3x use span vs carpet. In bedrooms, carpet is best UNLESS it's a giant rooms with say a full master suite and lanes of high traffic. And in those instances we have an area of the room done in carpet and rest in LVP. It makes the room look "designer" and it's actually a lessor cost then just lvp the whole thing.

NEVER do Granite in a rental. Granite requires regular sealing, and it does stain! Also, granite can crack from hot items being placed on them. Quartz or Silestone is best solid surface use.

Backsplash can be BOTH a good visual impact AND lowered maintenance, if get a high-gloss class-type finish. Keep grout lines to a minimum. Remember, keep in mind not only what looks good but what durability and maintenance comes with the material. Kitchen = grease, so go with glass tyle finish, minimal grout. We often do a subway style tile, there dirt cheap, look good, last forever, and come in colors.

On stairs we never do LVP, too much maintenance. Treads and risers are done in a solid material, not covered with LVP. It's well worth it to do it right once and not have to worry about it for 10-20yrs, vs re-do every 7.

Greg Scott · Answer

I would tweak your choices.

We find the LVP works well but put carpet in the bedrooms.  We also don't put LVP on staircases as it does not give great bang for the buck.

Granite countertops can be a relatively inexpensive upgrade, but we've found tile backsplash is a regional thing.  In some areas of the country people want it and in others, it doesn't add much value.

We don't use stainless appliances as they don't wear well. After a few dents and dings, they look bad.  Black works just fine.

I would put the extra money into upgraded light fixtures and a nice sink faucet. Those are fairly inexpensive but highly desired.

James Hamling · Answer

Yes, very well. Just make sure to use good quality Poly. We use oil based, never water, never ever water based. And then every 4 years, do a buff and re-coat. We don't wait for it to be worn to nothing and getting wood damage, too many create there own expenses by not being pro-active on maint. schedule.

LVP is great for floors, if done correctly with good quality product. But not so much on stairs.

Vadim F. · Answer

I would do A and B. But also, what does your competition look like in your area? Will it increase your monthly rent and cash flow? If you won't be getting an increase in monthly rent with those upgrades and your competition isn't doing it, then why spend the $$ on a rental.

Adah N. · Answer

@James Hamling

So you use solid hardwood on the stairs and coat with 2 layers of poly? Does it hold up well in your B- neighborhoods?

James Hamling · Answer

We use a solid tread & riser. Generally a solid wood, setting of property determines species. Often oak, stained to best match the flooring. It's actually not that much more than using lvp to cap substrate for carpet.

Don't forget double poly.

Then going forward, it's a simple refinish/refresh for poly every 4-5 years. Which being just stairs, it's quicker and easier then you'd think. I like to stay pro-active with poly, keeps it cheap and avoids having to do any big sand and poly jobs.

Sometimes the old ways are the best ways.

Nathan Gesner · Answer

Steel appliances are easy to scratch, particularly if you have kids. Once they are scratched or dented, the damage is very noticeable.

Adah N. · Answer

@James Hamling

What kind of material did say you use on the stairs and risers?

Adah N. · Answer

@Nathan Gesner

Did not realize quartz can be affordable compared to granite.  I will certainly look into going for quartz over granite.

This is the second mention on stainless steel appliances not being durable on rentals. Do tenants intentional damage it? The one in our garage has been there forever, still looks the same…

Nathan Gesner · Answer

LVP in all the rooms except the bedrooms. I prefer LVP on the stairs because carpet wears quickly with people walking in the same path and scraping their feet, but it's situation dependent.

I prefer quartz counters for a rental because there are more color options, they don't require maintenace, and cheaper up front.

I avoid steel appliances except in high-end rentals. They damage too easily and look awful once they are dented or scratched.

Which Two Will Fetch a Higher Return?

Most Popular Reply