How much should I invest fixing up my first rental?

[Nick Ferrari]

Hey everyone,

So I currently am a rookie looking for some investment advice.  My wife and I are new to Bigger Pockets and are very interested in acquiring our first rental property.  Right now we live in our townhome but always have had the intent on holding & renting this property long term.  We've saved up a sizable nest egg and are prepared to live in our next home (although we haven't purchased this yet). 

My townhome is currently a nice home to live in the appliances for the most part are only a couple years old; we've done a solid job renovating the home and updating it.  However we could go further, the master bath & guest bath are okay but nothing special.  The kitchen has tile countertops, which we could switch to granite.  The basement could be refurbished. The gas fireplace is dated and could be redone.

My question is should I invest $5,000-$10,000 into really making this place look sharp?  Do these small expenditures truly make the difference in increasing monthly rent for a potential tenant in the future?

I'll preface this by saying we live in a middle to upper middle class suburb outside of the city.  With a local small university and a bustling downtown borough five minutes away.

[Kenneth Garrett]

@Nick Ferrari

Welcome Nick.  A few thoughts: 

1. Research the rental market in your area.
2. Look at average rent based on bedrooms, square footage and location.
3. Compare how your property is finished compared to the market.
4. You don't want to over do it, but there is a fine line.
5. You need to become an expert in your market.  Certain neighborhoods tend to have higher rentals then others.  Know where your area falls in.
6. I tend to be rehab higher then my competition.  This cost me some money but I receive a return in higher rents, better quality tenants and quicker leases.  Usually they are under lease in 7 days.

Good Luck.