Rehabbing for Rental Properties

General Landlording & Rental Properties
14yFollow

Rehabbing for Rental Properties

Cheryl S
Union City, CA · Member since 2012 · 16 posts · 2 votes

Hello Everyone,

I had a question about rehabbing a rental property. It's low end. I know I shouldn't go overboard because it's not like I'm living there. However, what do people think about getting things that might last longer?

For example, porcelain tile floors. I'm considering VCT as well, but am worried it may come up if there is a water problem. And countertops - do you go with laminate or granite? Granite, especially prefab is getting cheaper and the kitchen area is small. I definitely want to rein in my spending, but I do want things that I won't be changing any time soon. Thoughts? I appreciate the advice. I usually lurk on here and have learned so much.

=)
Cheryl

0Reply
78 views

Most Popular Reply

James H.
Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
14y

Depends on how low end. My first and so far only rental is 550/month low end.

Laminate counters. My rental kitchen, even though the house is only 750 SF, still has like 14 lineal ft of countertop. No way am I putting in granite. that would be like 2K difference and way too long of a payback period for what it is.

Medium grade vinyl tile in the kitchen and bathroom (not VCT). Easy to install by myself. Should last 2 to 3 tenants and them I'm switching to the floating vinyl plank stuff.

Original ood floors in living and bedrooms- sort of refinished (not sanded, but cleaned with lacquer thinner and a new coat of poly applied. Looks better than painting them brown even though there are still dark and light spots from old age and wear. I find folks like the vintage look.)

Stainless steel sink with faucet that came together in kit for 99 bucks.

Textured plastic wainscoting in bathroom and same material in tub surround (the stuff you see in public bathroom and commercial kitchen walls).

2Reply
See this reply in the discussion

18 Replies

Jump to latestLatest
  • Priscilla Z.
    Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes
    14y

    I lurk on here too Cheryl.... :) Lately I haven't had as much time since I've been busy but I'm back!

    I have rehabbed two rental properties and on both of them I have gone with things that last more. Tile instead of carpet, granite instead of laminate. The reason being because my partner and I did most of the work ourselves and we found the materials at a cheap price. I'd rather pay now then have to pay later... also, since I bought the property so cheap I could invest a little more in rehabbing it... I also think that making it look so nice got me more rental income...

    1Reply
  • Will Browm
    Investor · Buford, GA · Member since 2012 · 120 posts · 31 votes
    14y

    If you do a quick search, this has been discussed often. I own two rentals in lower income areas. I definitely put bulletproof porcelain tile ($.69 from Floor and Decor) everywhere that made sense. No carpet ever. I actually painted some hardwood floors and my tenants LOVE them. Instead of replacing counter tops, I paint them with Rustoleum counter top paint.

    A lot of people follow the Section 8 Bible when fixing up homes for lower income; may be a wise purchase.

    1Reply
  • Michael Lauther
    Investor · Hampton Bays, NY · Member since 2009 · 907 posts · 258 votes
    14y

    Anything you can do that will look good but is durable would be my advise. Carpet can get old fast so finish wood floors. I have not done granite but I would consider it in a small kitchen. Tenants who love their home will take better care of your property if given a chance.

    0Reply
  • Theresa K.
    Real Estate Broker · San Diego, CA · Member since 2012 · 104 posts · 20 votes
    14y

    We had to completely redo the kitchen when we bought our rental so we went with the laminate countertops because of the cost factor. We did the work ourselves too. Ours is not a high-end rental and we figured that even a good tenant could ruin granite if they didn't take care of it properly so why pay the more for granite. Also, the kitchen area is small so we didn't think that the granite countertops would translate into much of an increase in the rental rate. I'm pretty sure we'll go with laminate countertops again when these ones need to be replaced. Definitely tile for the floor in the kitchen and dining area. It's cheap and durable.

    0Reply
  • Cheryl S
    OP
    Union City, CA · Member since 2012 · 16 posts · 2 votes
    14y

    @Priscilla Z - Thank you so much for your response. I'm getting the property cheap too, so I figure I can get more durable materials. =) Thanks again!

    @Will Brown - Thank you for responding too. I did a search, and found so many different answers. I think people have their favorite materials to work with. Thanks for that tip on the good price for porcelain tile - never seen it that low. I purchased the Section 8 Bible. There is a lot of good stuff in there. Thanks again!

    0Reply
  • Uwe K.
    Milwaukee, WI · Member since 2009 · 203 posts · 50 votes
    14y

    My rentals are mostly low end.
    My rule of thumb is: as inexpensive as possible without sacrificing too much quality (i.e. not cheap, just inexpensive). So for example I would never do granite, I would generally not put ceiling fans, but I would also not refinish hardwood floors. The latter has multiple reasons. My tenants overwhelmingly like carpet. Cheaper to put than refinishing the floors. Sometimes the floors would need to be repaired for addl. cost. They WILL be able to destroy the wood floor almost as fast as the carpet, I am absolutely convinced about that :)

    Otherwise, I choose basic stuff, and from there I pay more in two cases:
    a) It's not significantly more to provide a fancier grade product, but it adds bling (faucet with sprayer, for example)
    b) I know I get the durability that withstands the tenants and the higher cost has a certain payback. E.g. if I put a $20 plastic faucet in and have to come out twice a year and replace it, that's wasted money if if they have a lifetime warranty on them.

    On the low end, people are happy with the basic stuff. If it's functional and clean, the size and location fits, most won't care or even notice if you go overboard. They still use it as if it's not theirs, if you know what I mean.

    I recently also went over to not supplying appliances, based on a tip from a city inspector. I have not had one complaint from any tenant and rarely one from prospective. Some have that stove and fridge sitting somewhere, others just go and buy a used one and have no issue with it.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y

    Related reading:

    http://www.biggerpockets.com/forums/52/topics/68041-how-do-you-harden-your-rentals

    http://www.biggerpockets.com/forums/52/topics/51199-making-your-rentals-durable-

    https://www.biggerpockets.com/forums/311/topics/75451-bomb-proofing-rental-properties

    0Reply
  • Cheryl S
    OP
    Union City, CA · Member since 2012 · 16 posts · 2 votes
    14y

    @Michael Lauther - Thank you for the advice. Good point about tenants taking care of the property if they love it.

    @Theresa K. - Thank you for your input too. =) I am definitely going with the tile. I'm probably leaning laminate. I've had granite in my kitchen for almost 2.5 years that was sealed with something, and I haven't had to reseal since. Maybe that's why I was thinking it was pretty much bulletproof?

    @Uwe K. - Thanks for the advice too. Although, I'm not sure if I can get away with not providing appliances - basics like a refrigerator and stove. Isn't that expected?

    @Steve Babiak - Thank you for those very helpful links! Great ideas in there that I wouldn't have even considered. =)

    0Reply
  • Uwe K.
    Milwaukee, WI · Member since 2009 · 203 posts · 50 votes
    14y
    Originally posted by Cheryl S:

    @Uwe K. - Thanks for the advice too. Although, I'm not sure if I can get away with not providing appliances - basics like a refrigerator and stove. Isn't that expected?

    Well, depends on your market and the type of property of course. For me, I thought so, too, and mostly the appliances are included here. But I've tried it, and mostly it works for me and my neighborhoods. Surprising especially because they are mostly low-income tenants who you would not expect to be able to cough up a few hundred for appliances just like that.
    Inspector's words are still in my ears: "They complain about every little hole int he wall, but they are just happy cooking with a hot plate and microwave. And when they leave, the appliances are the first things they leave behind..."

    0Reply
  • James H.
    Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
    14y

    Depends on how low end. My first and so far only rental is 550/month low end.

    Laminate counters. My rental kitchen, even though the house is only 750 SF, still has like 14 lineal ft of countertop. No way am I putting in granite. that would be like 2K difference and way too long of a payback period for what it is.

    Medium grade vinyl tile in the kitchen and bathroom (not VCT). Easy to install by myself. Should last 2 to 3 tenants and them I'm switching to the floating vinyl plank stuff.

    Original ood floors in living and bedrooms- sort of refinished (not sanded, but cleaned with lacquer thinner and a new coat of poly applied. Looks better than painting them brown even though there are still dark and light spots from old age and wear. I find folks like the vintage look.)

    Stainless steel sink with faucet that came together in kit for 99 bucks.

    Textured plastic wainscoting in bathroom and same material in tub surround (the stuff you see in public bathroom and commercial kitchen walls).

    2Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    14y
    Originally posted by Cheryl S:
    ... Although, I'm not sure if I can get away with not providing appliances - basics like a refrigerator and stove. Isn't that expected?

    ...

    What is expected is that you as landlord comply with local law for the area of the rental. In my area, there is a requirement for cooking equipment (stove or microwave) to be provided by the landlord, but no such requirement for refrigeration. This might vary for where you are located.

    Now, I always say you have to provide what the nearby similar rentals provide, just so that you can compete with those other rentals. But this is not a legal requirement - it is simply good business practice and common sense. If (almost) all of the nearby rentals have a stove and refrigerator, then you should be prepared to do likewise.

    0Reply
  • Theresa K.
    Real Estate Broker · San Diego, CA · Member since 2012 · 104 posts · 20 votes
    14y

    Cheryl S: We put in Home Depot laminate countertops in our own kitchen about 8 years ago. Of course we never got around upgrading so we still have the laminate ones today and they look just like they did when they were installed - no stains, no knife marks, no burns from hot pots. I think it just depends on how well someone takes care of their property. I'm sure you naturally take good care of your granite since it's in your own kitchen so that's probably why it seems bulletproof to you. But
    I have to agree with Uwe K. - tenants "use it as if it's not theirs, if you know what I mean."

    0Reply
  • James H.
    Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
    14y

    I have heard that you need to seal and re-seal granite over time to prevent water etching and staining.

    However, the new man-made granite supposedly has a lower porosity and does not require sealing.

    I was told this by someone who would know, but don't have first hand knowledge.

    0Reply
  • Rick BassettBusiness Member
    Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
    14y

    We've done about a dozen SFH's for rental and have standardized on just about everything, some examples: Formica counter tops (always the same color/style), the same RTA kitchen cabinets, inexpensive tile (from HD or Lowes) in kitchens, baths and sometimes hallways, NEVER carpet anywhere instead we go with hardwoods or laminate, use the same paint color on all walls and trim, the same replacement windows (when needed),builders/contractors lights (from HD or Lowes) ...the list goes on and on.

    475-900-3100
    Bassett Property Management5108 Reviews
    WebsiteView Page
    1Reply
  • Uwe K.
    Milwaukee, WI · Member since 2009 · 203 posts · 50 votes
    14y

    Rick, just wondering with which quality level you go for the laminate. Whenever I walk on cheap laminate with no padding (I assume), it sounds hollow and thus cheap, and I think better put some BC plywood down.
    I am mostly asking about any padding under (attached, or separate, or any) and the thickness of the laminate, expected life (wear etc.).

    0Reply
  • Ryan B.
    Investor · -, IL · Member since 2010 · 409 posts · 616 votes
    14y

    Uwe, I do the same as Rick and put the exact same materials in all rentals. I use the cheapest laminate wood ($0.69 sq/ft), and put the cheap padding ($0.25 sq/ft) under it to get rid of the hollow sound.

    0Reply
  • Rick BassettBusiness Member
    Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
    14y

    I go with laminate from Lumber Liquidators in the $1 - $1.25 sq/ft that already has the padding attached or I will look for a discontinued deal at one of the Big Boxes. I don't use the cheapest stuff but a step or two up. I used to put carpet in my rentals but that only lasts 5 - 7 years on average: I estimate that I can get 10-12 years out of a laminate solution for about the same cost as the carpet. The bonus is that the laminate will not hide pet sins at move-out like the carpets will.

    475-900-3100
    Bassett Property Management5108 Reviews
    WebsiteView Page
    0Reply
  • Melissa W
    Syracuse, NY · Member since 2011 · 53 posts · 47 votes
    14y

    We supply stove and fridge for three reasons
    1. Damage caused by tenants bringing stove and fridge into apts
    2. To compete with the other properties which have stove and fridge
    3. So tenants won't get them from the Rent-a-Center and have to pay fifty bucks a month - another bill for them to pay that makes them less able to pay rent.

    Most of my rentals I have to do very low cost rehabs - I'm not the owner and price is a huge factor. I buy countertops, vanities and cabinets at the Habitat for Humanity Re-Store because I can buy good quality used ones cheaper than I can buy crummy cheap new ones that will fall apart after the first tenant.

    I'd prefer to put in tile an laminate rather than carpet - however owners would rather pay less for a carpet now that will have to be replaced than to pay for a long lasting but more expensive floor. I do know all the cheap places in my area to get carpet and I invested in a good carpet cleaning machine.

    It really depends on what type of properties you have though, mine are in the lower range and if I put nicer materials in them they wouldn't rent for much more because they are limited by the areas they are in.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free