Which upgrades should I focus on before listing my MTR?

Question

Our current primary is going to be our first MTR and first investment property to be clear! It needs siding, 3 full bathrooms updated, some overhead lighting installs and upgrades, drywall repairs, some exterior upgrades like driveway and pathway gravel, foyer flooring redone and about 80% of the house needs interior paint. We have updates all windows, kitchen, roof, HVAC...My questions is should we do all upgrades before listing to get the most rent? Or what is the best way to determine which upgrades will net us the most income on a monthly basis.

Kathie Russell · Answer

Nice bathrooms and kitchens, comfortable mattresses and pillows, and good furniture/decor should be first on the list as that is what attracts guests to the online booking, after that I’d do the paint and floors and the rest as you can afford it. I just stayed in an awesome STR in VA, it literally had part of the floor in particle board (but done in a way as to be sorta artistic), never gave the floors a second thought because everything else was so well done, all amenities, etc.

Kathie Russell · Answer

Nice bathrooms and kitchens, comfortable mattresses and pillows, and good furniture/decor should be first on the list as that is what attracts guests to the online booking, after that I’d do the paint and floors and the rest as you can afford it. I just stayed in an awesome STR in VA, it literally had part of the floor in particle board (but done in a way as to be sorta artistic), never gave the floors a second thought because everything else was so well done, all amenities, etc.

Eliott Elias · Answer

Look at your competition, you may charge a lower price than everyone else and leave your property as is.

Jewel B. · Answer

This isn't entirely accurate in practice unless there's little supply and a lot of demand. Although the value difference in terms of rent may only be $200/mo, there can be additional value in terms of occupancy rate. If the as is unit would be far less likely to rent than the upgraded unit, the value is ultimately a lot more than just $2400/yr. Not to mention it also adds value in terms of appraisal/equity and resale value.

Stephanie Walker · Answer

Honestly, it depends. I manage MTRs (most of them in the Charlotte market but we have a handful nationally). I’d look at what’s customary in your area. For example, in Charlotte, I recommend floors throughout, paint throughout, updated bathrooms, updated kitchen, etc. However, we’re looking at a property in OH and would likely skip those upgrades because it doesn’t affect our monthly cash flow. I hope that helps!

Caitlin Stables · Answer

Yes I understand. Just to clarify, all the floors have already been refinished in the last two years so the only floor we would refinished is the foyer so it would match everything else. Same with the paint. We only painted my daughters bedrooms when we bought the house so we would paint the rest (the 80%) to complete it before renting. So I agree with your statements about only partially updating hence the desire to complete :-) I guess I am wondering more so about lighting. It was built in 1978 and so several of the rooms don't have overhead lighting. Is that a big deal or do people mind using lamps? Personally I prefer overhead lighting so I guess its safe to assume others would too! Just answered my own questions lol

Caitlin Stables · Answer

I’ve gone through the effort of pricing things out as well and it won’t cost me close to 50k for all of the upgrades. It would be fully renovated at that point and I could definitely demand more than +$200. My question was more about the type of upgrades that most folks pay attention and my gut is in line with what others have suggested so far 😊👍🏻

Which upgrades should I focus on before listing my MTR?

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