Renovating your rental property is a FANTASTIC tool to attract renters, but more importantly, attract the renter you want to see living in your property. Think demographics – who is your desired client? Renovate your property to match that description. During the process, always keep renters in mind. How easily can renters picture themselves living there? Adjust the renovation process to meet this requirement.

Here are some ways you can renovate your rental property to increase its value:

Curb Appeal

Statistics say that it takes only seven seconds to make a first impression – make it count! First impressions are not just limited to meeting a person face-to-face or over the phone; first impressions are a valuable tool in real estate too through curb appeal!  

On average, a strong curb appeal has the potential to increase property value by 5% to 11% and can help to sell a home faster. Additionally, Nomadic Real Estate noted that an enticing curb appeal has the potential to increase rent by 3% between tenancies. A minor detail that plays a significant role in increasing property value.

Today, 90% of home buyers searched online during their home buying process. Think of how this statistic translates to renters. The curb appeal of the rental property is the first impression a renter has when viewing a property online. Think of yourself when you view a property online. When a property has an unkept yard with a dirty exterior, is your first thought “I want to live there!” Probably not. You might even exit the listing to view another property that looks more appealing. Viewers have a preconceived notion in their heads that a strong curb appeal correlates with an enticing interior.

As an investor, here are some ways you can increase curb appeal:

• Landscaping: Let’s start with upkeep and cutting the grass. In the two pictures above, picture 1 looks more appealing to the eye because the grass is upkept and maintained. If maintaining a lawn seems like a lot of work, consider placing artificial turf or opting for maintenance-free landscaping with rocks. Additionally, adding a fresh layer of mulch can transform the flower and plant beds to create a fresh look. Finally, adding some plants will add to the overall landscaping and create dimension.
• Windows and Gutters: Clogged gutters can cause water leaks inside your home and let moisture into the house. What does this mean? Moisture is a breeding ground for insects – GROSS! Let’s be proactive rather than reactive and clean up the gutters. While you’re washing out the gutters, take the hose and spray down the windows to clean them up a bit.
• Clean-Up: Using a pressure washer or hose, give everything a good rinse down and rid the property of built-up dust piles. Additionally, let’s get rid of all the garbage that may have accumulated on the lawn or flower beds.
• Front Door: Pressure wash the front door and add a fresh coat of paint to liven up the property!
• Replace Old Shutters: Replacing old shutters will not only add to the overall curb appealbut will also prevent future maintenance misfortunes.
• Driveway: Grab the pressure washer and give the driveway a good power clean. Consider taking out the weed wacker to trim up the edges of the lawn around the driveway for a cleaner-looking exterior.
• Upgrade Mailbox: For as little as $20, upgrading an old and torn apart mailbox will contribute to the curb appeal. We don’t want this one minor detail sticking out like a sore thumb.
• Revamp the House Number: We’ve all seen a house number barely clinging on for life. If this is happening at your rental property, spend the extra $10 to get some new house numbers.
• Paint: This step is determined on a case-by-case basis. However, a fresh coat of paint or stain on the exterior of the house and fence never hurt anyone. In our opinion, this is the step that really ties everything together.

Update the Kitchen

The kitchen is an excellent space to be creative and maximize space. Remember… storage, storage, storage!

Here are some ways to increase kitchen appeal:

• Update the Cupboards: If the home is a couple of decades old, this could mean replacing the cupboards entirely. Otherwise, a fresh coat of paint or stain will help brighten up the space! Also, consider switching out the hardware for a new minimal and sleek design.
• Invest in New Countertops: When choosing a countertop, you want to choose a material that will endure constant wear and tear from renters. Good options to go with are granite, quartz, or laminate.
• Consider a Backsplash: According to homeadvisor.com, the average 16 square foot backsplash will run you around $400 to $600 or $650 to $1000 for high-quality types (excluding labour). Remember this is just an investment property, a backsplash is a “nice to have” not a “need to have”.
• Replace the Faucets and Appliances: Replacing the faucets and hardware in a kitchen is a minimal detail that really adds to the overall ambiance of the kitchen. If it’s not done, it can stick out like a sore thumb (similar to the mailbox for curb appeal). Additionally, if the appliances are dated, let’s switch those out sooner rather than later to save time and money on future unexpected maintenance bills.
• Don’t Forget About Lighting: If the property has an early 2000s frosted glass chandelier, let’s consider switching that out for a fixture that is more modern. Just because it was in style at the time, doesn’t mean it is now.

As an investor, remove yourself from the situation and think of what the demand (renters) would want in a kitchen. The kitchen should be a blank slate that the renter could imagine themselves using on a daily basis – it might even be the sole selling feature of the property!

Update the Bathroom

Similar to the kitchen renovation, storage is king in the bathroom! As an investor, add storage wherever possible to avoid renters damaging the walls by adding shelving. Switch out the free-standing sink for a vanity with storage and a sink basin. Maybe it’s time to update the dated shower and bathtub combination into a modern design? Update the countertop to a new granite, quartz, or laminate option. Depending on the available storage in the bathroom, maybe a medicine cabinet mirror is a smart option to maximize storage space? Finally, if you decide to retile the floors, think of which grout is the easiest to keep clean and maintain.

Check out this awesome blog by Daltile on the pros and cons of various grout options:

https://www.daltile.com/trend-hub/design-ideas-library/which-grout-is-best-for-my-tile

Install New Flooring

This step is not always needed but can make the world of a difference! Think like a tenant. Which is easier to clean – flooring or carpet? Flooring. Plus, as an investor, it saves you money in the future if the carpet needs to be torn up or replaced. Act sooner while current prices are lower before they adjust to inflation in the future.

When picking out flooring, think about cost, durability, and the overall appearance – think light, bright and airy. Typically, vinyl plank flooring is an optimal choice for a rental property, because it is waterproof, relatively inexpensive, and durable. Additionally, vinyl flooring can give the appearance of high-end without breaking the bank.

Paint!

Bright walls and neutral colour pallets attract a more diverse crowd of potential suitors for your property. It’s hard for renters to envision living in a property when it already has someone else’s personal style and colour pallet scattered throughout. Whites and light greys are always a safe bet.

Picking a brighter colour pallet makes a space look larger and less closed off. Additionally, sunlight is able to bounce off the walls (and flooring) to create a brighter atmosphere.

As an investor, consider using one neutral colour throughout the entire unit. In the future, if you need to touch up or repaint, it will be easier to colour match one neutral colour than finding multiple colours (that may also be discontinued).

Update the Shutters and Blinds

We’ve all seen shutters or blinds broken and clinging on for life. Let’s just fix that problem right away so that tenants feel safer and have more privacy in the unit.

Extra Touches

You know the saying, “You don’t know what you have until it’s gone”? That’s how tenants feel when these minor details and quick fixes are non-apparent.

Here are some finishing details you can add to your rental property to increase rent:

• Washer and dryer: No one likes setting time aside in their busy schedule to spend an afternoon at the laundromat.
• Dishwasher: This seems like a common item that all properties would have… no. You’d be surprised how many properties are missing this appliance. We’ve heard of tenants saying, “After not having a dishwasher, I’ll only move into a property with one from here on out.” Do your tenants a favour and install a dishwasher.
• Parking: Not always possible if the property is in a condo complex, however, having at least one stall adds to the overall value your property provides. Bonus if it comes with a garage for those cold Saskatchewan winters.
• Fenced-In Yard: This detail is not only a perk for pet owners, but it also provides security and privacy for the tenants.
• Storage, Storage, Storage: Maximize as many aspects as possible of the property by adding storage! Consider adding built-ins in the closets to avoid tenants hanging up shelving and damaging the walls.
• Lighting: Consider switching out the lighting to new energy-efficient lighting that will help add to the overall ambiance of the space.

Conclusion

The goal of rental property renovations is to increase value for tenants while increasing income for the investor. The renovations not only increase the property value, but they act as an expense that can be deducted from your taxes. Additionally, investors have the opportunity to get the property reappraised, take the information to the bank, and pull out that new equity and put it towards another rental property – it’s a continuous cycle! Have fun in the process and happy investing!