As a real estate investor, your primary goal is to seek ways to maximize your profits. The more value you can add to your investment property, the more money you can make from the resale. If you are renting it out instead, well-planned remodels can help you to increase the rent, reduce maintenance costs, and boost your profits.
While there is no guarantee that any renovation project will affect resale value or rentability, certain home improvements have been shown to provide a higher financial return than others. When planning renovations, keep this in mind: To add the most value to your home, changes should conform with the neighborhood and flow with the rest of the house.
Outdoor improvements and renovations to kitchens, bathrooms, roofs, and windows generally provide the most financial benefit. Here are some tried-and-true ways to add value:
- Upgrade the Kitchen
One of the biggest deciding factors in purchasing a home is the kitchen. The kitchen is a place where homebuyers and renters will likely be spending a large amount of time. You can update the kitchen by replacing old appliances with stainless steel ones, adding a new backsplash, repainting the kitchen island, refitting cabinetry, and investing in durable and modern countertop materials.
- Freshen Up the Bathrooms
Making your bathroom feel fresh and new can be as simple as updating a few small items. Changing out the vanity in your bathroom is a sure-fire way for an instant facelift. Many places sell vanity combinations with sinks and fixtures already attached to make installation even easier. Lighting can also make a big impact. From overhead lighting to wall sconces to chandeliers, the options are endless.
- Improve Curb Appeal
In real estate, first impressions matter. Sprucing up your property’s curb appeal can attract more foot traffic and more bids. While there’s no one-size-fits-all fix, enhancing the exterior of your property can be as simple as making sure to keep your lawn and shrubbery well-manicured and water your plants and flowers to keep them lively.
- Invest in Security
Safety is top of mind for renters. In addition to curb appeal, real estate investors turned landlords should make security a priority. Not only will security features earn more value, but they may also shield property owners from liability for injuries or damages sustained on the property due to negligent security.
Would you like to speak with a member of the RLG team to discuss the value of your current investment real estate portfolio and determine areas for improvement? Give us a call today! We would love to help you with the properties you currently have and multiply your investment portfolio.
