When to rehab or leave it alone

Question

Hi all,Most of my rentals are all upgraded and almost like-new, but I have one that requires a new bathtub, new bathroom floor, full house painting, new trim in areas, etc. otherwise it's in pretty good shape. The perfectionist in me wants to upgrade those elements, but I'm getting top-dollar rent in my area in it's current state and no problem finding good tenants. In other words, I don't think I'd make any more by making the renovations but I feel as if I should. Does that mean I don't renovate it? It's hard to balance that in my mind!Thanks.

Erickson Sainval · Answer

If the value isn't there and there is no need for it, save yourself the trouble. As long as you are providing a well maintained home, the rest should all have a strategic business approach to it, not personal.

Aigo Pyles · Answer

It depends on your area. As long as the house looks well maintained there is no need to upgrade.

Stephen Lynch · Answer

All great points. We had a tenant terminate early so I took those funds and replaced all outlet fixtures/covers (where required), HVAC exhaust vents/returns, light bulbs, professionally cleaned, painted all closets, a ceiling that was yellowing, and touched up the walls and trim.

John Teachout · Answer

Something we often encounter in newly acquired houses is switches and outlets that don't work or missing/broken switch and receptacle cover plates. These are things that are very easily remedied and cost very little. And light bulbs. Why don't people replace burned out light bulbs? We go through and replace them with LED bulbs for energy savings and then tout that when showing the property. Little things that don't cost a bunch of money can make your property seem better than average.

John Teachout · Answer

The home should be functional, safe and relatively attractive. If you feel the need to do some stuff to the home, make minor improvements that add to the safe or functional list. ie, if the kitchen faucet works, leave it be. If it leaks, either fix the leaks or replace the faucet with a middle of the road model. Does the house have GFCI outlets in the appropriate places (kitchen, bath, etc)? If not, install those. If you want to upgrade something, a ceiling fan in a bedroom is a nice addition. We put ceiling fans in all our bedrooms no matter what type of property. (exceptions being houses with low ceilings)

I completely understand your desire to upgrade and improve properties and I struggle with that too. It's hard to keep in mind what "we" want vs what the tenant's needs are. Keep stuff working and your tenants will appreciate you for it.

When to rehab or leave it alone

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