You want a good-looking rental that attracts tenants and rents out easily — or maybe you’re flipping properties and are looking to add upgrades that make for a quick sale. What amenities are worth adding and which items give you the best bang for your buck? Let’s take a look at some smart additions that offer the highest value, starting with curb appeal.
Download Your FREE copy of ‘How to Rent Your House!
Renting your house is a great way to enter the world of real estate investing, but most first-timers (understandably) have a lot of questions. Fortunately, the experts at BiggerPockets have put together a complimentary guide on ‘How to Rent Your House’. All the skills, tools, and confidence you need to successfully rent your house are just a mouse-click away.
New Front Door
This addition isn’t too costly and makes a huge difference in the way your house presents itself to the neighborhood. Also, on the obvious side, if you have a drafty door that is creating a nuisance with your heating bill, this upgrade should be a no-brainer. Adding a new door really gives you the most bang for your buck when it comes to home improvement. If you’re wondering what type of door to swap for your old one, steel doors are on the rise and can be extremely cost efficient.
Changing the exterior siding majorly impacts the look and feel of your house. It can change your home from worn down to refreshed. Siding prices depend highly on the size of your home, but most projects run around $9-11k, often adding up to an 80 percent return. Right now vinyl siding is the most popular choice by buyers.
Energy Efficient Windows
Who doesn’t want to save money on their gas and electric bills every month? This is an obvious go-to fix to help maximize your repair budget. By letting your potential buyers know the house has been improved upon in this manner, they’ll appreciate the fact that they’ll be able to enjoy a future of lower energy bills and a warmer home.
Some locations don’t offer an attached garage or even a garage in general, and you can add serious value to your property by adding in your own. Even a simple carport will add value to your home without busting the bank.
New Garage Door
It’s amazing how much a new garage door can add life to a home, especially when looking from the street. Adding a new garage door can increase your home’s selling price up to an extra $10k. Even if you have a strict budget for upgrades, you may still add this to your list since an average two-car garage door sells for under $2,500.
Patio and Deck Upgrades
This is one not everyone thinks about; however, the addition of a deck or patio only adds square footage to the “living space” of the home. Look around your neighborhood to see what other homes are offering, and see if you can match or surpass those. This also adds creativity to your home that others on the market might not have — and it’s such a cost effective way to add style and space before adding an extra room to your house.
This should be a priority when looking to maximize the ROI of your upgrades because the kitchen is where many people spend a large amount of time. Most buyers are looking for new countertops and appliances — but if that isn’t in your price range, think about performing a facelift instead. You can upgrade a kitchen by making small changes like a new coat of fresh paint on those cupboards or swapping in new light fixtures that add sophistication to a boring and outdated kitchen. You’d be surprised how many people would rather stay home and cook than go out if they love the kitchen they have.
Again, this doesn’t need to break the bank if you don’t have the money, but it will increase the value of your home significantly. Just as with the kitchen, it’s amazing what a fresh new coat of paint will to do a bathroom, along with other small changes, such as changing the faucet and hardware to something stylish and modern. Also, if you don’t have a tiled shower, I’d try and make the money for that. New tile in a bathroom can make even the smallest bathroom look chic and beautiful.
Turning Your Attic into a Bedroom
This is the easiest way to add living space without having to build out your already home’s existing footprint. This can raise your property’s value by thousands by creating another living space that can be used for anything from a new master bedroom to a child’s playroom. The price for the upgrade can cost up to $70k, but you should be able to get about 65 percent of your investment back!
Investors: Are these upgrades you regularly perform in your properties? What would you add to this list?
Don’t forget to leave a comment below.