Posted by By Paul Branton, Director of Investor Services for Home Rental Services
Goodbye 1983. Hello 2023! Over the 16 years we’ve had the opportunity to manage this now 40 year old property, we’ve seen it through eight tenants, a 50% rental rate increase and numerous repairs and improvements.
To celebrate the 40th birthday of this property, the homeowners wanted to give it a facelift and breathe some new life into it. Well, truth be told, the birthday didn’t actually have as much to do with it as did the three year tenants moving out, and the paint and flooring being around ten years old. As it often occurs, we were faced with the dilemma of going with the quick but effective paint the walls and put carpet down approach or the slightly more expensive, but more rewarding long term options.
The owners were on board with the long term improvement options, so we went in that direction. The two biggest improvements were painting the oak trim/doors to white and installing vinyl plank in lieu of carpeting in the higher traffic areas. In addition to those two items, we also removed the entry pony walls which really helped update the home by providing an open concept feeling versus the older formal living room.
1983 Formal Living to 2023 Open Concept
Entry Closed – Before / Entry Open – After
Living Room Before / Living Room After
LVP Versus Carpet in the High Traffic Areas:
Hallway Before / Hallway After
Lower Level Before / Lower Level After
Upon completion of this renovation, the property rental rate has increased from the outgoing tenants at $1,585 to the new tenants at $1,795. The benefits of making these improvements is not only seen in the rental value but also in the property value. I would expect that these improvements will realize close to a $1 for $1 return on investment. Additionally, the LVP will hold up much longer than carpet. This will reduce future tenant turn costs. Last but not least, as mentioned in the laws of attraction blog post, the property being updated versus outdated is also more likely to bring a better quality tenant.
If you are just getting into rental investing, or you have had a rental for decades, we’d be excited to talk to you and discover how we can help you with your investments… just like we’ve been helping these clients for 16 years! Please give us a call.
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