It Pays to Invest in Your Dallas Investment Property
Over time, most owners of rental properties discover that remodeling a Dallas rental property can translate into bigger rent checks.
But renovating a rental unit requires a different approach than upgrading your own home.
Leave Emotions Out
First of all, you should try to detach yourself emotionally when making decisions on renovating your rental property. When you’re renovating your own home, you’re considering upgrades that will fit your lifestyle and make you happier. The renovation is customized for you and your family. Emotions are very much a part of the renovation process since it is your home.
On the other hand, renovating an investment property requires that you take a more generalized approach. Consider which upgrades might appeal to most tenants and which upgrades will maintain the property in good condition. Ultimately, the choices you make when renovating an investment property must make good business sense above all.
Consider What You Can Afford
Once you have a list of potential upgrades that you’re considering, you want to make sure you get the most bang for your buck. Figure out your budget. Any renovations that are necessary to maintain the property should get priority, such as fixing any roofing issues. Cosmetic renovations get second billing, though these are often what will make a tenant fall in love with your property and stay through several lease extensions.
It goes without saying that a nicer home attracts people who are willing and able to pay more rent. To attract higher-income tenants, think about the kind of upgrades those tenants might want. Stainless steel appliances, nice countertops and upgraded flooring. Those are the basics. Some tenants might be just as interested in modernized home amenities such as an open space plan that merges the kitchen with the family room, thus requiring you to knock down a wall if your home is a few decades old.
Larger Investment for Higher Return
For these more expensive projects, you will definitely want to consider whether an investment in a larger scale project will pay for itself over time in higher rents or property value.
Sometimes, tenants want to live in a rental property for several years. In some cases, they may be willing to split the cost of a renovation or even pay for it themselves. Some renters of coveted high-end properties in major cities are increasingly paying for renovations themselves, with the permission of their landlords, The Wall Street Journal reported last weekend.
Don’t expect your renters to do this, however. Your best bet would be to stay focused on the bigger picture and remember that, as with any investment, your rental property needs regular maintenance and attention for you to maximize your profits.
If you need help with a minor or minor Dallas Remodel, check out our website at http://uniquehomebuild.com and enjoy checking out other articles in our blog. You may even want to sign up as a subscriber so that you can receive notices when new posts are made.
Photo credit: akeg