If you’re a rental property owner, you probably already know that maintenance and upkeep are essential for increasing property value. Along with helping you earn more rent from tenants, regular maintenance and occasional home improvement also raises the sale value if you want to sell the property later on.
Still, renovations and upgrades tend to be expensive. This is why many homeowners choose a home renovation loan or personal line of credit for home improvement over cash. This helps to spread out the cost over a longer period of time and reduces the toll it takes on your cash flow.
If you want to upgrade your rental property on a budget, here are 6 ways to do it without breaking the bank:
1. Repaint Interior Walls and Ceilings –
There’s nothing like a fresh coat of paint to instantly change the look and feel of any room, especially if the walls and ceiling have started to look scuffed or dirty. A new paint job doesn’t cost much, but it can make a huge difference to the value of your property. Keep in mind that neutral colors are your best bet since they will appeal to the widest range of tenants/buyers.
2. Improve Landscaping and Exteriors –
All too often, your energy and time are spent on revamping the interiors of your property, while the driveway, patio, garden, and pool get neglected. Remember, a home’s exterior is the first thing people see. Boosting curb appeal with a clean entryway, new fence, and other landscaping upgrades creates a better first impression on potential buyers and tenants alike!
3. Revamp Kitchen and Bathrooms –
Everyone wants a clean, bright and modern kitchen in their home, and the same applies to bathrooms as well. Inspect these spaces for any issues and fix them first. To increase appeal at a low cost, replace fixtures such as faucets, pipes and chimneys. Look into affordable storage solutions for kitchen and bathroom organization, including cabinets, hooks, open shelves, etc.
4. Upgrade the Windows –
When you’re planning small upgrades, windows are probably not high on the list. It may be time to rethink that, though. Even something as simple as adding storm windows over the ones already installed can drive property values up. Tenants will probably want to choose their own curtains, shades or blinds, so just ensure that existing window treatments look clean and presentable.
5. Inspect Appliances and Plumbing –
Homes with appliances such as washers and dryers usually bring in higher rental income, but only if they’re functioning well. Check all the appliances to make sure they’re in good shape, and call a plumber to inspect pipes, drains and other plumbing components on your property. Fixing issues before renters move in will help them feel more confident, both about you and your property.
6. Clean Up, Inside and Out –
Keeping the interiors as well as exteriors of your property clean and well-maintained can make a dramatic difference to its value. Get the carpets steam cleaned, sweep up cobwebs in the basement or attic, power wash the outside walls and driveway, mow the lawn and trim overgrown plants or trees. Nobody wants to live in a dirty home, especially if someone else made it look that way!
There are many other ways to improve a rental property without spending a lot of money. If cash is tight, start with small improvements you can tackle on your own. This will increase the value of your home and ensure that potential tenants have a positive experience, without burning a hole in your pocket.
For a bigger impact on property value, consider applying for a home improvement loan or personal line of credit that will cover renovation expenses. With higher rental income, you can easily repay what you’ve borrowed. After that, you can enjoy the extra earnings for a long time to come!
Shiv Nanda is a financial analyst who currently lives in Bangalore and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at firstname.lastname@example.org.