What are top upgrades for buy-and-hold rental property?

[Greg Pond]

Curious to hear what the BP community thinks about some of the top upgrades for buy-and-hold rental property. We own a property management and real estate brokerage firm in Denver, Colorado that serves real estate investors. We are writing a new article to share with our clients about some of the top upgrades for their rental property portfolio. I am working on a plan for each of our clients over the next 10-years, so they can budget for some of the upgrades. Most of the properties we manage are in neighborhoods that achieve rents from $2000 to $5000+.

I also have a single-family investment property that is approaching 20-years old and will need some love soon. We have done some work to it by investing in a new roof, exterior paint, flooring throughout, and new appliances. Curious to hear what everyone thinks about future updates over the next 5-years. The rent is $2650 and in a strong Denver neighborhood that continues to see rent appreciation. The homes have above average finishes in most of the rentals in the area (i.e. granite countertops versus laminate, hardwood versus carpet). My thought is start with some inexpensive items, such as: master bath and kitchen light fixtures, ceiling fans, and landscaping. Looking forward to hearing your ideas.

[JD Martin]

In my properties, the best upgrades have been:

1. All floors into either hardwood (if existing) or luxury vinyl plank (totally waterproof). Removing all carpeting and cheap sawdust-based laminate.

2. Making sure all properties have what I consider common amenities. As an example, I am shocked at the number of flippers around here who won't spend a couple more bucks and put a dishwasher in an old kitchen. It kills their resale.

3. Upgrading property status when possible. Going from 2/1 to 2/2 or 3/1, or from 3/1 to 3/2 has been huge for us.