You wouldn’t buy a property with a leaky roof just because it has fresh paint, and you need to determine your priorities for property improvements using the same approach. Prospective renters need safety first, then curb appeal and enhanced amenities and finishes.
If you invest in the long-term success of your property, good renters will show their appreciation by renting and investing in your equity.
Building as a guide for rehab
When a building first goes up, everything starts with a stable foundation. Think of your capital investments the same way.
Safety and security are the number one concern of any human being. When you’re ready to invest in your property, inspect it for issues that could turn into safety hazards. Are there water intrusion concerns? You’ll have to replace rotten siding and structural components before even considering new kitchen counters.
Once your investment is safe for those who depend on its solid foundation and sturdy walls, it’s time to move on to amenities that will stand the test of time.
Keep property improvements neighborhood-appropriate
Renters expect an affluent downtown loft to look very different from housing in a middle-class residential neighborhood, and rents usually reflect those expectations. Keep property improvements in line with what the market will bear. For example, laminate countertops may be a better investment over granite materials. Or, on the other end, renters in your neighborhood may walk away from a property with carpet, preferring hardwood or laminate.
Improve your property structurally, make it safe and secure, and then make it attractive compared to what is available in the area. Foundational improvements improve a property’s value, not just its marketability. Base your rehab investments on what makes sense to tenants and the market, and back away from big-ticket expenses that won’t add value to your property’s bottom line.
Property improvements with Class A Management
If you are still determining what property improvements your property needs to attract your ideal tenant, call on Class A Management. We offer extensive development services that include remodels and upgrades. Call us today at 817-295-5959 or e-mail info@classamgmt.com.