After you have compared comps and are determining the pricing for a rental property, what improvements impact the rental amount the most in your opinion?
Just a couple that I have thought of: Updating countertops and appliances in Kitchen, new deck/patio, new flooring/carpet.
Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
3y
Class B - No carpet, luxury vinyl plank, stainless appliances, paint agreeable gray w/ white ceilings, if current countertops are in bad shape, I replace with quartz, if cabinets are rough, I paint white, if bathroom mirrors have no frame, I miter cut door trim and attached with calk, ceiling fans in all BRs, W/D hookups, add deck if possible & cost effective, if flower beds around house, cover with pine needles, last contractor in is professional cleaner.
It's not so much the rental price as it is attracting good tenants at an acceptable price.
This is how I explain it. First, profile what a typical rental of that type is like in your market.
For example in my market a C class rental is circa 1975-1980 cosmetically dated.
Then look for improvements over that profile that you can make economically realizing that most renters in B, C, and obviously D class rentals are not getting everything they want.
So, for example in a C class rental something as simple as including a washer and dryer might be a cheap improvement that sets you apart. Adding electrical outlets as in my area often a bedroom might only have 1 outlet in a C class unit.
For each unit, the things that are easiest and cheapest to do might be different. In one rental it might be adding a dishwasher because there is an obvious place to add one. In another it might be adding a laundry to the half bath on the first floor.
If you take a list and believe that making everything on that list updated will pay off, that is likely not true because many times items on your list will be "acceptable" to start and like I said most renters are not getting everything they want. So, replacing decent laminate counters with granite in a B class unit might not pay off while including that washer, dryer and adding a dishwasher might even though those were cheaper improvements.
Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
3y
Class B - No carpet, luxury vinyl plank, stainless appliances, paint agreeable gray w/ white ceilings, if current countertops are in bad shape, I replace with quartz, if cabinets are rough, I paint white, if bathroom mirrors have no frame, I miter cut door trim and attached with calk, ceiling fans in all BRs, W/D hookups, add deck if possible & cost effective, if flower beds around house, cover with pine needles, last contractor in is professional cleaner.
It's not so much the rental price as it is attracting good tenants at an acceptable price.
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
These upgrades do not affect the rental price as much as it affects the ARV. You are pretty much at the mercy of what other property, regardless of condition is renting for. (as long as it is not completely outdated)