Smart Improvements are anything that will bring value to your rental property and make it more appealing to potential tenants. Not a lot of Grand Rapids property management companies will advocate for high quality products in all rental properties, but it’s something to consider if you want to be unique.
Recently, there was a fire in an investment property, and the house was located in a lower income area. The owner had to replace everything inside, and decided to install quartz countertops. A lot of people said that was crazy, but you can be certain that whoever moves into that house will stay there for a long time. If you can save one turnover, you might save $2,000 or $3,000, depending on how people take care of the house. So you’ll pay for those upgrades and improvements by reducing turnover. This isn’t to say you should put quartz countertops in every house you have in the city, but do it when you have an opportunity. In this case, a lot of students and nurses were moving into the area, so the owner knew that in the next five years, the tenant pool would include the type of clientele who looks for a house that stands out.
When it comes to improvements, a lot of people spend good money on carpet and paint but they ignore the countertops or they ignore the bathtub that needs re-glazing. For $300, you can re-glaze the tub and you’ll have something that looks decent. Replace the linoleum, because if you’re going to try to rent a house with old, broken tile and cracked plaster, you’ll get a tenant who cares about the property as little as you do. Those tenants move almost yearly.
Good property managers know that you cannot overbuild a house or lose money on improvements if you’re going to hold onto it for five or 10 years. You’ll get your money back over that time. When it comes to parts and supplies, don’t buy the cheap stuff. They’ll wear out faster and you won’t be able to find replacement parts in a few years. Be willing to spend a little more now. Make improvements that you would do in your own house. Think about the amenities you’re most comfortable with, and you’ll find the highest quality tenants. They will pay more and they will stay longer.
When you make improvements to your rental property, make sure they’re high quality improvements. If you have any questions about how to do this, contact us at United Properties.