Monday, March 19, 2012

Put your money where it will return the most

When thinking of updating your home, what comes to mind first? Usually, the kitchen and bathroom are highest on the priority list. These updates can help you sell your own home, make you happier in your own home, or rent out an investment property.

A dirty or outdated kitchen may be perfectly serviceable, but it won't invite prospective tenants into the unit. When trying to lease an investment property, cleanliness is most important. Once the home is clean, any small repairs are easily noticed and fixed. If there are larger cosmetic problems, for example a lime-green laminate countertop with metal edging, some prospective tenants may be willing to overlook them and rent anyway. However, if you have the money, investing in an updated kitchen will help your property rent more quickly. Depending on the era and decor, some renovations may not take that much time or money. Sometimes repainting the cabinets is all that is needed to update a look. Sometimes new hardware and fixtures makes a dramatic improvement. In some situations, the whole thing needs to be gutted. Whatever the situation, the renovation will likely repay itself in the long-run with happy tenants who are willing to pay more for the rental unit.

When deciding what areas of the home to renovate, always consider the return on investment. Especially in investment properties, consider non-specific renovations. The walls don't have to be "realtor beige", but a neutral is more universally acceptable than hot pink. Adding a finished room to the basement will likely increase interest in the unit, as long as it could be whatever the tenant needs- a bedroom, a family room, a media room, a game room, or a home office. Finishing the basement into a media room is great, if the prospective tenants enjoy quality TV time. Otherwise, you are significantly reducing the pool of interested tenants.

If managing your property is becoming overwhelming, Provident Property Management is ready to be your property management team. We will help find new tenants, manage tenants' needs, arrange for maintenance issues to be addressed, and if the property needs some TLC, we will work on making it a desirable place to live. Our passion is helping you get the most from your investment property. So please, contact us today!

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