new countertops for rental that may be sold.

General Landlording & Rental Properties
6yFollow

new countertops for rental that may be sold.

KENDRA J.
Minneapolis, MN · Member since 2013 · 32 posts · 9 votes

I own a singe family home that i've rented out for 12 years. Current tenants will be leaving in May. Property has original 1972 light green countertops that are original and in great shape. The kitchen had a partial upgrade 5 years ago but we left the countertops since they were in good shape and the property would be rented again. I would like to sell this house now but husband says we will pay 60k in taxes and wants to rent it for 3 more years until he retires and income will be less on taxes. I have someone who can replace the countertops with quartz and do a nice backsplash for me now so it looks good for resale in 3 years. I've never had nice countertops in this place and am wondering if it would be a mistake to sink money in this now or would be better to do right before we sell in 3 years. Also wondering if quartz countertops would possibly produce more rent? Also any advice on how to save on the tax issue when you sell a rental?
thanks in advance

0Reply
12 views

Most Popular Reply

Mike McCarthy
Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
6y

I agree, I use granite/quartz in all my rentals (B class). They hold up great and always make the kitchen look much nicer.

In terms of rent, it adds a bit, but it’s the overall look of the house. I can’t say that it adds $50/mo to the house, but I do get a lot more interest with a nice new looking kitchen.

As for tax savings, read up on 1031 exchanges. If you can buy another rental property within 90 days, your gains are deferred/non-taxable.

1Reply
See this reply in the discussion

8 Replies

Jump to latestLatest
  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    6y

    @KENDRA J. if you install granite or quartz, the counters will look exactly the same when you go to sell. I have been installing granite in all of my rentals for a while now because they are going to hold up longer than the cabinets will. Can you get more rent for the counter tops? If so, then this is a no brainer. 

    1Reply
  • Mike McCarthy
    Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    6y

    I agree, I use granite/quartz in all my rentals (B class). They hold up great and always make the kitchen look much nicer.

    In terms of rent, it adds a bit, but it’s the overall look of the house. I can’t say that it adds $50/mo to the house, but I do get a lot more interest with a nice new looking kitchen.

    As for tax savings, read up on 1031 exchanges. If you can buy another rental property within 90 days, your gains are deferred/non-taxable.

    1Reply
  • Dave FosterBusiness Member
    Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes
    6y

    @KENDRA J.,  Pay now or pay later.  Why not now before it's more expensive.  And as @John Warren said, they'll look the same in 3 years.  In FL now it's almost becoming a standard that won't generate much more rent but is a detractor if you don't have granite or quartz (these products are relatively cheap here in FL). 

    Good suggestion by @Mike McCarthy on the 1031.  That's a heap of tax to pay when you could avoid it. But it's not a DIY process. You have to use a qualified intermediary who will guide you through the maze of rules and regs.  But it's worth it to save that $60K.

    The 1031 Investor5137 Reviews
    WebsiteView Page
    0Reply
  • Michael King
    Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
    6y

    Why not factor a credit in for granite/quartz when you go to sell?

    We bought a house to live in a few years ago and it had the most awful granite you could imagine. We couldn't wait to smash it up and install something worth having. Just because it's granite or quartz, doesn't make it a selling feature. 

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    I'm not a CPA, but are you sure you will pay $60K in taxes or will you pay taxes on $60K?

    If you have the money to do so, do it now so the next set of tenants can enjoy the new countertops.  As Michael mentioned, get something nice and neutral.  I had a rental that was initially my home and it came with chocolate carpets.  They were in good shape, so I left them as I didn't have a lot of extra money at the time.  When I did replace them, it changed the entire look of the place and I wish I would have done it sooner.

    0Reply
  • Marc Winter
    Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    @KENDRA J., since real estate is a local business, I can't comment on FL styles for rentals.  However, I would not install granite or quartz in the majority of rentals we manage.  

    We previously installed ceramic tile floors in kitchens and baths.  Do you have any idea of the pain the owner feels when they see broken tiles because the tenant's kid had an oopsie dropping a heavy cast-iron pan?

    It's obvious that anyone can have an 'accident'.  The question is, will the perp be able to pay for the repair/replacement?

    I go with stainless appliances, granite/quartz, lux vinyl plank, high-end back-splashes, etc. on flips; not often on a rental.

    0Reply
  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    6y

    I've seen many previous rentals that have chips, stains, and etched surfaces in the granite after a tenant moves out. They are not as careful, use harsh cleaners even if you leave them products for granite, aren't as good about keeping on top of spills and stains, and most landlords don't take the time to seal properly. I've gotten some expensive quotes for refreshing etched finishes.  And it's extremely difficult to find a matching piece to replace a section missing a chunk unless it's a very common type.  

    If your counter is still in good shape, wait until before you sell, so you can list as new granite counters, and I believe there are different tax treatments if you do improvements right before sale versus just updating a rental, but I'm not an accountant, so not sure.  

    0Reply
  • Mark H. Porter
    Investor · SC NC, VA · Member since 2020 · 1k+ posts · 756 votes
    6y

    I just use alternatives such as granite tile or modular granite.  I have a hard time shelling out $40sf for A-grade granite when there are some very fine alternatives.  It certainly matters whether your upgrading a class a/b unit or whether your just slapping lipstick on a pig.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free