As rental properties age and show signs of their continued use, they should be updated often. Outdated interiors and appliances can cause your rental properties to lessen in value, and you might have to lower the rent to attract new residents.
If you want your Lynnwood rental home to appeal to new residents, you must perform regular updates to the property. We recommend that you consider replacing carpet, repainting walls, and refurbishing appliances every two years. Once you finish the basic updates, you can then think about performing other extensive upgrades. Adding granite countertops, two-tone paint, or hardwood flooring might seem like the best way to attract more refined residents and increase the value of your property, but you should ask yourself if they’re worth the expense.
There are pros and cons when updating your property, and you should consider which upgrades are necessary and which will cost more than they are worth.
Residents are often looking for rental homes with features and services that will match or enhance their way of life. To attract these residents, it may be necessary to install new kitchen appliances, bathroom fittings, and other amenities to your Lynnwood rental household.
Based on your market, after these renovations are complete, you will be able to raise the rent on an upgraded rental home. Potential residents understand that they must pay more for quality and are often willing to do so. Residents attracted to upgraded homes are likely to take good care of them, which could increase the long-term profitability of your rental properties.
As a bonus, upgrades using quality materials can increase the overall value and extend the life of your rental properties. Higher quality materials tend to last longer, offering long-lasting value and a higher return on your investment.
Upgrades are all about value. Spending too much on an upgrade is a potential drawback because you might not be able to recover the cost. Upgrades will require cash up front, so you’ll need to consider your budget and make sure you have enough cash flow to cover the cost of home improvements while waiting for the eventual return.
Another potential negative effect to upgrading your rental property is that you might price your property out of your market. If you want to upgrade to increase the amount your charge for rent, do some research first. Look for similar properties in your area to find out whether your price point after installing upgrades is too high.
Ultimately, it’s important to understand that not all upgrades will increase the value of or interest in your Lynnwood property. Taking the time to decide what to upgrade and what to leave as is can help you avoid costly mistakes.
Unless you are confident that an out-of-date rental home is what prospective residents are looking for, having a plan to upgrade your rental home is a smart way to increase the value of your rental property. For more information about the services offered by Real Property Management North Puget Sound, please contact us or give us a call directly at 425-903-8500.