Updated almost 9 years ago on . Most recent reply
Should I Update it or Rent it?
I have a 2/1 rental in a A+ area that easy to rent. It has a simple kitchen that's had a 'lipstick' update but doesn't have any modern amenities (full-size stove, dishwasher and disposal). The cabinets are mixed and dated. I've priced out a full kitchen remodel with all modern convinces and stainless appliances which would cut my emergency savings in half. This upgrade could boost the rent 300+ dollars a month. It would take 2 to 3 years to recoup the investment. Is it wise take a chance on a higher rent upgrade and deplete my financial cushion or just lease it back out to build up more reserves?
Most Popular Reply
If you have the capability i.e. capital, I would definitely upgrade. Being that with a $300 per month increase in rent that could pay off in 2 years, it would be a great investment. You would potentially increase the amount of better qualified tenants. I was told recently that my unit was too high in rent without that person ever seeing the unit. However, with a recent renovation, I think I should get the top end of the rent range. And I get it every time with a fresh, updated unit.