A big thank you to Natalie from Home Owner Bliss for writing this article! Make sure to check out her blog!
Home improvements to your rental property run the gamut from minor cosmetic tweaks to major endeavors. You have general aesthetic upgrades (such as painting and replacing the hardware on kitchen cabinets) and more extensive remodeling projects like renovating a kitchen or adding a home addition. Some you can do on your own, while others require an expert with a license and a portfolio of completed projects. To help you determine which path to take, check out the following tips from JXI Real Estate Resources.
Regardless of who does them, your spruce up can make a positive impact on attracting tenants, and even on your property’s value if you decide to put this home on the market. Simple things like a fresh lick of paint or tidied up landscaping can even make a difference when determining new rental rates.
Paying for Home Improvements
Whether you choose to go big or small, the fact of the matter is that home repairs, renovations, and improvements cost money. Because of this, you might need to get inventive with how to cover costs. Savings is one option, as is using your credit cards. But there may be a better way.
If you have equity in your property, one option is to do a cash-out refinance. If you’re not already familiar with the term, a cash-out refinance essentially replaces your current loan with a similar product at a higher balance. If you refinance a $100,000 balance for $130,000, you take a $30,000 difference in cash to use toward home improvements. This guide from Rocket Mortgage walks you through the process of refinancing an investment property.
Any time you fundamentally change the layout of your property, you need a professional. The two areas this applies to most are the kitchen and bathroom. A full kitchen remodel will not only amp up the wow factor of your rental, but it also provides an impressive return on your investment. The same logic applies to the bathroom, and turning a small bathroom into a more open space with a universal design is a huge step toward making your rental more accessible. It’s also a smart move if you ever plan to occupy the property to age in place. In addition to these two rooms, if you plan to add to the footprint of the property or upgrade a major system — HVAC, plumbing, electrical — call a licensed professional.
When you are budget-minded, never fear. There are still plenty of projects that will allow you to get your tools out of the garage. A few of these include:
Everything you do to your home will improve its value, providing that it’s done right. Small projects, like painting and landscaping, make sense to learn on your own. But anything more in-depth, and you are better off looking for a remodeling company that can get it done right the first time.
If you find yourself feeling lost with a new investment property, take heart; JXI Rental Resources can help. From investment coaching to online investment courses, you can make sure your real estate investment plans are a success. Get in touch today!