How do you calculate your rent after upgrading the flooring?

Question

Hello BP!

I am changing my flooring from carpet to luxury vinyl flooring and it is costing me about $2200.

My question is this: how do you calculate your increased rent?

Do you divide the cost of the new flooring by 12 months and increase the rent that much?

Do you try to recoup your money in 2 years? 3 years? More?

Or do you just keep rent based on what the market allows? I mean, there has to be some level of increase for rent if you upgrade the flooring, right?

Interested to hear everyone’s thoughts!

Joe Aiola · Answer

@Ralph Miller You can only raise the rent as much as the market will allow. You have to look at the overall condition of your property (not just the new floors), the amenities you provide, and the location of the property. Then you can compare your property to the comps near you (a real estate agent can help you with this), and determine if your property is worth market value, a little less, or a little more.

Hope this helps and best of luck!

Stephen Kehoe · Answer

I agree with @Joe Aiola. There is no rent increase formula based on cost of project over a a time period. Otherwise we'd all put in gold toilets and recoup the cost in that short time period. Before contacting an agent you can use Zillow rent manager to do a napkin calculation like below.

How do you calculate your rent after upgrading the flooring?

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