I would want to make it renter proof and stylish. Think of it as if yo were going to rent it. What would you want your new apartment to look/feel like? Take a look at rental listings around you. What do similar units look like? Can you get top dollar as-is? If not, you need to think about what would need to be done to get you the rent that you would like.
Looking at comparable properties is what it's all about. Rentals in your target range will have a pretty common set of features. Countertop materials, stainless appliances or not, w/d included or not, etc.
Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
5y
I would want to make it renter proof and stylish. Think of it as if yo were going to rent it. What would you want your new apartment to look/feel like? Take a look at rental listings around you. What do similar units look like? Can you get top dollar as-is? If not, you need to think about what would need to be done to get you the rent that you would like.
I would want to make it renter proof and stylish. Think of it as if yo were going to rent it. What would you want your new apartment to look/feel like? Take a look at rental listings around you. What do similar units look like? Can you get top dollar as-is? If not, you need to think about what would need to be done to get you the rent that you would like.
Looking at comparable properties is what it's all about. Rentals in your target range will have a pretty common set of features. Countertop materials, stainless appliances or not, w/d included or not, etc.
Investor · Cleveland, OH · Member since 2019 · 147 posts · 156 votes
5y
@Taylor L. said it right! Check out comparables in the area and even put together a little excel table if you'd like - what's the bed / bath count? What are they getting for rent? Make notes on the features. What is the rent per sqft? Rent per sqft is usually an easy way to see if you're over/under charging as long as the finishes are similar. Size of the units is something I see a lot of people ignore sometimes, but it's really important. Theoretically, if you have similar features and finishes, you should be able to achieve similar rents as long as the area is similar too. If the comparable is 5 miles away and the area is much different, that's a different story.
Rental Property Investor · Cincinnati, OH · Member since 2020 · 869 posts · 823 votes
5y
Like others have already said, looking at the rentals in your market is the best way to start to see what value others are adding to similar rentals, and what the prices are. Small renovations like updating light fixtures and painting walls and/or cabinets can make a big difference if done well, and these changes typically don't cost much either.
Rental Property Investor · Lubbock, TX · Member since 2015 · 455 posts · 182 votes
5y
I agree with @Taylor L. You have to base everything off of comps. Find properties nearby with the same bed/bath & generally same sqft & amenities. See what they rent for & see if there's a difference between nicer & less nice ones. See how much value you could add by making it one of the nice ones & run analysis based on that.
Real Estate Agent · New York City · Member since 2020 · 818 posts · 639 votes
5y
Agreed with the sentiment that comparables are important and you do not want to overinvest since you may not get a premium.
Something else to keep in mind is turn time. Keeping a unit vacant costs lots of money. Painting a unit might take two days. But redoing a bathroom takes about a week. It isn't just the cost of the materials and the labor but the lost rent you need to factor in.
Typically, if your countertops aren't huge, I'd invest in those as well as backsplashes and painting cabinets or refinishing them if they are dated. Fresh kitchens give you a nice bump with regards to rental rates and refis.
Some markets will get you yield on stainless steel appliances and/or washer-dryer units. Explore this. Definitely buy used to lower your basis.
If the flooring is beat up, refinish the hardwood or get some nice laminate to go on top.
Lastly, a few strategic light fixtures from can really accent a space and make it "pop".
First step is what needs to be done. How much time will it take, how much will it cost and how much more will you get in rent? Will it add value to the property? It is amazing what a fresh coat of paint can do and if the floors are dated, put in new vinyl plank flooring-make sure it is durable and not a cheap one as tenants can be hard on things. New hardware on cabinets and perhaps a new faucet (nothing fancy) can also make a big difference.