Remodeling your Rental Property in Utah
I’m sure there have been several times throughout your life when you have heard the saying, “You have to spend money to make money”. This statement could not be more applicable than when you are investing in rental properties in Utah.
While it’s always difficult to dedicate funds to improving an investment that may already be producing for you (especially in a down economy), this can often times be the most important decision you can make. If you spend your money wisely and remodel your rental the right way, you could cover the cost of the remodel in a few short months as you increase your cash flow.
Consider this example: Last year I spent $2,000 upgrading and remodeling features in my rental property. This increased the monthly rent I was able to convince a tenant to pay from $1,000 to $1,250. By increasing my monthly cash flow by $250, I was able to cover the cost of my renovation in 8 months and pocket an extra $1,000 for the remaining 4 months of the year.
So what are some examples of inexpensive ways to upgrade your rental property and maximize your rental income? One easy solution is to replace the brass door handles with a more contemporary brushed nickel. You can also replace dated light fixtures with a more modern look, brightening up particular areas within the home. Another simple solution is applying new paint, which can give each room in the property a fresh look. In addition, try installing new modeling, especially crown or chair modeling, and you can give the property a higher end look.
If you would like to spend a little extra money, I would recommend focusing on upgrading the bathrooms and kitchen. Some areas to focus on would be replacing laminate flooring in the kitchen with tile, painting the cabinets in the kitchen, re-tiling the bathtub/shower in the bathroom, and replacing laminate countertops with granite. In addition, you may want to consider upgrading the appliances to stainless steel. I realize that many of these upgrades can be expensive, but they are always popular with prospective tenants.
Spending the money to remodel a rental property may seem impractical, but I assure you it can be very beneficial if spend money upgrading the right areas. If you would like to discuss updating your rental property to maximize cash flow or are considering hiring a property management company, please contact us at FRE Property Management. We are the premier property management company in Utah and will provide you with the peace of mind knowing that your investment is being taken care of.