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Which Renovations Give You the Best Return On Investment?

Contemporary Blue Kitchen with Renovated Windows, Cabinets, and CountertopsMany investors know that developing your Kissimmee rental properties is an important way to keep them attracting tenants. However, property improvements are also the key to adding value to your investment. Prior to pursuing any home improvement, take the time to look at which ones will actually add significant value to your property. For rental property owners, knowing which improvements offer the best return on investment is critical to your business’s long-term success and profitability.

Kitchen: Contemplating an upgrade to your rental property? First, weigh the construction costs versus the expected gain in property value. In a recent nationwide survey, most home sellers indicated that kitchen updates offered the best return on investment (ROI) for the money spent. Regardless, there are other ways to make your property value rise beside a kitchen renovation. Minor updates, such as refacing cabinets, replacing appliances, or adding a new countertop, sink, or faucet are all affordable ways to renovate without draining your bank.

Bathroom: Unless your property is in dire need of a major update, small renovations to the bathrooms can boost the value of your property. Consider covering old, worn tile tub and shower surrounds with a new fiberglass overlay. Mount a new vanity and mirror, or consider painting the room a fresh, light color. You can replace worn-out vinyl flooring with tile. Tile is not that far from laminate flooring in terms of price, and it comes with a lot of long-term benefits — one of which is not needing to be replaced as often as other materials.

Stone Veneers: While interiors are great, it’s best not to overlook the property’s curb appeal. First impressions matter. Especially when it comes to the success of a rental property and its resell. That is why it’s just as important to update your property’s exterior, too! Adding a stone veneer to an area of your property, preferably the front exterior is a great return on investment. According to a 2020 report, replacing vinyl siding with stone veneer around an entryway, pillars, or lower third of your property’s front-facing exterior walls helped sellers recoup almost all of the cost of installing it. Going down this upgrade path prior to selling the house could lead to making your Kissimmee rental home more marketable and allowing you to charge a higher monthly rent.

Doors and Windows: Want to get the most out of your upgrades? Garage doors and windows offer a high return on investment! If your rental property has a garage, come up with a plan to replace the door as soon as it displays any hints of being worn or damaged. A new garage door, even though quite inexpensive, can do a lot to raise your property’s resale value in the same way stone veneers can. The same thing is true of replacing old windows with new vinyl windows. New windows are more than just about good aesthetics; they essentially offer more safety and energy-efficiency. Replacing old windows shouldn’t be too heavy of a home improvement since it quickly offers a high return on investment.

Property improvements and upgrades can be expensive and time-consuming. But they are essential to long-term rental property investing success. Planning your budget and constantly maintaining your Kissimmee rental property gives you more assurance that your property stays competitive in the market while increasing in resale value.

Are you on the lookout for rental properties that are appealing to both renters and buyers? Give Real Property Management South Orlando a call at 407-982-2000 to speak with a Kissimmee property manager today. We can help you evaluate your property’s current condition and suggest budget-friendly ways to ensure that your property stays competitive in rental and resale markets.

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