Renovating a rental property

[Ryan Guthrie]

Hi all,

Looking at a SFH that needs new flooring, kitchen needs to be updated, paint, etc. Does anyone have any experience purchasing a rental property and renovating? I don't want to load the house with stainless steel, granite, hardwood, etc but I also want it to look nice and be competitive in the rental market.

If it helps, the neighborhood is middle class, and homes are around ~150k. This home is about 1200 sq ft, 3/2.

Any tips regarding updating a SFH? This is my first renovation. I am going to try to do as much as possible myself. Any and all insight about rental properties, renovation, etc is appreciated. Thanks in advance.

[Bill S.]

This is my thinking. Nice rentals attract nice tenants that stay. So so rentals attract so so tenants that move every few years. I will deviate from the crowd a bit here. I tend to want to be slightly above the rest of the houses in the neighborhood that are for rent and even for sale. There are lots of options for finishes. You can scrimp and save here and there on materials but in the end the installation is nearly the same so I like to go with "nice".

Curb appeal is important but that doesn't mean expensive landscaping. Durable is the name of the game for landscaping but it must look good from the street.

Kitchens and baths are where you put your money (mama picks the house). Hardwood floors are much more durable and in many cases more desirable than carpet. Note the cheapest grade of hardwood is the same to tenants as the most expensive.

For me lowest cost SS appliances (they look nicer than midgrade black or white), cheap granite tile counter top (looks like granite in photos), tile backsplash and wood trim edge, new off the shelf premade builders grade cabinets, 3 tone paint, ceiling, walls and trim complimentary colors (look at model homes in your area for ideas). hardwood floors, new bathroom with tile surround having an accent strip, new vanity. Good quality faucets everywhere. Pex plumbing if needing upgrade.

My experience is that a cheap update looks cheap in a few years and you have to redo or take a hit on vacancy and lower rents. Nice finishes means even when they are a bit worn they still look respectable.

Screen your tenants carefully. Visit their current home unannounced and see how they take care of things. A nice place and good tenants means very little to do for years.