Renovations without rent increase

[Leona N.]

We have an older cash flowing rental house that we've owned for about ten years. The time has come that if we want to keep the house we will need to start fixing it up. We have new tenants moving in August 1st and really don't think the market could sustain any higher rents. The windows are in pretty terrible shape and we should blow in some insulation. Is this something we should hold off until absolutely necessary or just do it this fall. Either way I don't see how these improvements will get us more rent but they should help in future capex. Thanks.

[Michele Fischer]

Property improvements aren't always about commanding better rent.  Keeping the property in good condition helps your investment and communicates to the tenants that you take the business seriously.  That said, I would probably wit until the tenants are more established before inconveniencing them with projects.  It's great to get them done with the tenant in place, but both are pretty disruptive and neither are cosmetic thins that the tenant can help personalize or particularly enjoy.  We like to do kitchen remodels and let tenants choose some of the finishes, help them feel more like invested.  At the first maintenance inspection I would mention to them that you have two projects to do int he spring or next summer, both of which will help lower their utility bills.