Top 4 Renovations For The Greatest Return On Investment!
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Hi, Benton Cotter here, helping making your rental investments successful. Today, we’re gonna talk about the top four renovations for the greatest return on your investment.
We’ve done a lot of these. We’ve done a lot of home improvements or rehabs. We’ve actually done helped investors buy or sell 15,000 homes just in Arizona alone in the past seven years.
Also in our other areas and markets, we’ve done this as well. We’ve kind of learned this data, gathered together, and hopefully for here for your benefit. Leased over 10,000 homes, so we know exactly what the tenants want, and we kinda find the greatest return.
Big thing that we always run into is the kitchen. Kitchen is the focal point of any kind of home, whether it’s for rental investment, for leasing, or if you’re looking up to fix and flip, kitchen always the focal point.
We don’t like the huge remodels of the kitchen. That’s great if you can get your return on that, but sometimes you don’t get a maximum return, so we look for the small things. Big thing that you can do is paint the cabinets to update them. Simple paint, probably replace the hardware on them as well. Those can go a long way, not too expensive.
Also add crown molding to the top. A good thing if the home’s a little bit nicer. Can do those and actually add value to your house.
Big thing you also wanna do is sometimes is actually remove some cabinetry. Sometimes in these older homes, 80s, there was cabinetry everywhere kinda blocking and the flow of the house wasn’t great. Remove those, remove the small little half walls. Things like that to open it up. The new thing is open up the kitchen, especially if there’s a great room or family room right next to it, open it up so they have that space.
The other thing you can do is just replace appliances. Update the appliances. Make ’em stainless steel if it’s a nicer home.
For rentals, we always recommend this as well, especially ’cause then you’re gonna have less maintenance to deal with, plus it improves the overall appreciation of the house and the value of the house, and also curb appeal for the tenants, or appeal to the tenants to rent the home, so it rents faster if you have nice, updated appliances.
Next simple thing is lighting. Replace lighting fixtures. They’re so simple and cheap, especially in the entryways right when they walk into the home. You wanna replace those lighting fixtures. Make sure they’re up-to-date and modern. Don’t have to go really exuberant and spend tons of money on these. These are cheap 100, $200 fixtures.
Also get the brightest bulbs you can, put ’em in there. We also wanna make this as bright as possible, so bulbs is a good one. Open up the windows if you can. If there’s anything blocking or too big of blinds on there or curtains, open it up more.
We definitely have to have window coverings on some homes, so definitely don’t totally take ’em down, but definitely open ’em up. But those are always good. If it’s a hotter climates, Arizona, Nevada, Texas, you know or even Georgia when it gets humid, have ceiling fans. It’s kinda become the standard now in most of these houses. Have ceiling fans in the bedrooms or the common areas as well. Pretty cheap still, very comparable to light fixtures, so 100, 200 bucks.
We don’t go anything fancy. We actually usually just get the $100 Hunter, $100 ceiling fans and put those in. Still look modern enough, but not too overdone. Next one we can do is always the outside curb appeal. It’s kind of a bigger renovation is to paint the exterior, but it adds a lot, especially if you do the pop-outs around the windows, two-tone that.
Really makes those pop out, or around the garage, have little pop-outs, that adds a lot. If you don’t wanna go full bore on that, maybe paint the garage door. That’s usually the first thing that people see is the garage door, so it’s gonna have a curb appeal. It’s kinda the focal point for the curb appeal. You can paint it sometimes.
Sometimes, you have to replace the whole garage, but usually get dollar for dollar on that on your appreciation if you replace the garage. Again, it’s gonna help lease faster or sell faster with the curb appeal. Now it’s not as expensive as the whole paint of the exterior but it can run you still quite a bit, so you kind of have to weigh both options there and see what will work for you.
Nothing you can add just like stone facade or veneer on the sides, that’s pretty cheap, and it’s just small, placement of it’s not like it’s all the way around the house. Certain areas on the porch that added to it or whatever’s popping out that the curb appeal’s gonna see first, people looking at the house gonna see first. Easy way to do that. Another thing is the landscape.
I wish we had more on this, but landscape is definitely something that you need to work on. Clean it up, especially trim, all that normal stuff, but also you can rework some things. If you’re doing a rental investment, sometimes you wanna do low maintenance-type landscape, which is great but find the balance. You don’t wanna have totally extreme desert when you’re renting out a home ’cause it can look ugly.
You still wanna have that curb appeal and make sure it feels good for the tenant, but you can definitely do some things, small things here, replace some bushes here and there to make it good. One thing, be strategic about it. I remember we had a rental house, we had a rosebush, but it was right next to the hose bib. So one thing, don’t have rose bushes if you want a family.
We learned that obviously with the kids and stuff, you don’t wanna have a rose bush, but also ’cause there’s thorns, but also it wrecks the hose bib, and those thorns will destroy the hose. I remember the tenants were replacing the hose once every two months, and so eventually, we just took the rose bush off. So kind of be careful what you put in there. Remember, this is for a home family. Make it easy maintenance, but also make it appealing enough for them to have a good experience.
So again, all those tips, small little tips.
We don’t want huge renovations. We’re going for rental investments. We’re trying to stay within our budget and be budget-conscious, but there’s some great things you can do.
Again, we’ve done this a lot, a lot, a lot and have helped a lot of people, and so we’ve got all the research and data. We know it works, we’ve seen it. Can definitely help you out if you have any questions about it, how to actually go about it. We have great vendors. We can actually have, we have eyes on local portfolio managers that visit the properties, that understand what needs to be done.
They can look at a property and say hey, this is what you need to do to get the highest rent, but also keep in mind we wanna on the return as well, and so we’re not just looking at dumping tons of money into homes. You wanna find that balance, but we can help you out.
Contact us, we have local agents in most states and most investible areas, and we can help you find a home as well. Find a rental investment as well, we help with. We have home union in partnership. We have lots of things that we can help, and then also help managing, help that whole process of rehabbing it, renovating it, and getting it on the market and leasing it up and managing it from there.