Upgrades- Piecemeal or finishing it all at once?

Question

I've got a property in a good location, but the kitchen needs updating and the carpet will be changed to either a laminate or hardwood.

I know I'll need to do the flooring update when the tenant moves out- I saw the carpet and the carpet downstairs can't be saved.

But, should I also update the kitchen at the same time I update the flooring? When I do the kitchen, I'll switch out the current tile countertops for granite and I might get new Ikea cabinets too.

On one hand, if I only upgrade the flooring when the current tenant moves out and then do the kitchen later on when the replacement tenant moves out, then I can market the property each time with brand new X when I'm looking for a tenant.

But, if I only do one upgrade at a time, I'm afraid that the tenants will not be impressed and regard it as half-finished. Will I still get the same bounce from wood floors if the kitchen itself is kind of shabby?

Michael R. · Answer

Also consider doing your upgrades at a lease renewal time to help increase rents. So the kitchen this year, flooring next year etc.

Michael R. · Answer

To echo what has been stated, determine what your market wants so you do not over improve. Also improve what is going to generate the most revenue. If that is everything and you can afford it, do everything.

Jason Miller · Answer

Since its a kitchen, I recommend getting it done now, but evaluate the benefit first.  Is that $5000 new kitchen going to increase your rent to cover the cost, or at the very least minimize your turnover time?  That will tell you if its time to do the work.  In the mean time I recommend a long term maintenance plan to help budget for future renovations, upgrades and replacement.

Steve Vaughan · Answer

Please clarify 'updating the kitchen' @Josh L. I have had great results re-finishing upper cabinet doors and countertops with $200 worth of kits.  In that case, do both.  As @Jason Allen Taylor points out, don't over-improve.  Especially a rental.  There are always unwelcome surprises in a full kitchen gut.

Kevin Smith · Answer

If It needs done and you can afford it then do it all at once. You may find a few surprises when you pull lower cabinets and why take a chance damaging new flooring a year or two later. Plus an updated kitchen should give you higher rent or at least attract better tenants depending on area.

Jason Allen Taylor · Answer

All at once, one and done. The "marketing value of brand new X" is overrated. So long as you don't over-improve and you use durable high quality materials it will be well worth your while.