Top 8 Money-Saving Tips for Renovating Your Rental Property

Rental renovations are a great way to attract residents and increase your property’s value, leading to higher rental income. As a homeowner, affordable updates like new landscaping, upgraded kitchen appliances and added security features can make a big impact. Small details, such as outdated carpets or cracked sidewalks, can affect how residents perceive your property, so it is important to make the space inviting without overspending.  

Regular renovations help improve resident retention and reduce turnover, crucial for maintaining long-term rental income. Thoughtful updates keep your property appealing, providing flexibility to increase rent. 

Why Renovate Your Rental Property? 

Renovating your rental property is more than a good idea; it is a strategic move that benefits both you and your residents. Here is why: 

1. Boost Resident Satisfaction: Happy residents are long-term residents. Renovations that improve comfort and functionality encourage loyalty, reduce vacancies, and help you retain residents longer.  
2. Maintain Rentability: Create a comfortable space that meets residents’ needs and complies with safety and legal standards. A well-maintained property attracts quality residents and ensures you stay competitive in the rental market. 
3. Increase Monthly Income: Want higher rent? Consider adding a bedroom, updating appliances, or creating a pet-friendly space. These enhancements allow you to justify premium pricing. 
4. Enhance Long-Term Value: Renovations improve the present and secure the future. Some updates, like a new roof or foundation work, might not impress residents but will appeal to future buyers. Every thoughtful upgrade adds to your property’s ROI. 
5. Lower Ongoing Costs: Energy-efficient upgrades like LED lighting and water-saving fixtures can reduce expenses. While these improvements may cost more upfront, they save money over time. 

8 Budget-Friendly Tips for Renovating an Investment Property 

As quoted by ApartmentList, the national rent index is up by 0.7% month-over-month. The pandemic and remote work have spurred demand for space and affordability everywhere. This makes it challenging for the unit owner to prioritize renovations to the rental property to attract residents at the market rate. Whether your property is vacant, or you are looking to make improvements to keep your current resident happy, these renovations can boost your bottom line. 

1. Re-Paint a Rental Unit 

Your unit’s walls might have gotten damaged from several move-ins and move-outs. Either way, a coat of paint helps improve the appeal of the unit to make it feel new and fresh. Paint is one of the most cost-effective renovations to rental property.   

Pro Tip: Neutral shades work well with most properties and appeal to a wider range of audiences, making them a better choice. Also, as a cost-friendly alternative, you can deep clean your walls, baseboards, etc. 

2. Install New Windows

Upgraded windows are known to affect the insulation of your unit, making electrical bills more cost-effective! Owners can also consider adding storm inserts or re-caulk existing windows to keep the renovation cost low yet enticing. 

Pro Tip: You can opt for Vinyl windows; they are cost-effective and require less maintenance. Fiberglass windows are the best for elevated aesthetic appeal. 

3. Improvise the Curb Appeal

Create a warm, friendly vibe, and let the landscape do the talking. There is nothing as pure as setting up a beautiful panorama surrounding your architecture. Install a picket fence to add quirkiness, or choose reclaimed brick pavers or well-worn stones to enhance the appeal instantly. Do not go overboard. If you have multiple units, stick to a universal shade for exterior paint. Also, pick plants in similar hues, like orange or pink, that contrast with the exterior of your unit.

Pro Tip: It is advisable to hire a professional property manager to set up the outside appeal, as this is a great way to increase resident satisfaction and might also improve your chances of setting a higher lease.  

4. Renovate the Kitchen

Turn your average kitchen into the “heart of your home.” Appliances complete the look of your kitchen. Replace aged appliances in your unit with modern and energy-efficient devices. Cabinets can be remolded with new hardware for a more cohesive look. Add some inexpensive touches: replace the faucet and/or add a glass tile backsplash to provide a cost-effective kitchen lift. 

Pro Tip: Ingeniously, before claiming renovations on a rental property, check into rebates and tax credits from the local government for savings on anything you supersede for energy efficiency! 

5. Remodel the Bathroom

An outdated bathroom with pink and blue hues is a big no-no for any rental unit. A minor overhaul is all you need to modernize a bathroom, which will recoup all the invested money and help you lease it at a higher rate. Install eco-friendly products to save on utility costs. Unwind in a new jet tub or replace faucets and opt for low-flow showerheads and fixtures with magnificent colors and relaxing textures.
 

Pro Tip: If you have a small bathroom, maximize the space and storage capacity to give a functional place to your residents. 

6. Install New Flooring

You can embrace various flooring options, but residents appreciate hardwood or engineered wood flooring over carpet, tile, and linoleum. Hardwood flooring is durable and easy to clean and gives the property a classic look. It is a wise decision to seek various suppliers and check in the market to see if you qualify for bulk pricing to renovate the flooring.

Pro Tip: When you are working through renovations, replace the floors at the end to keep them looking their best, as other work can produce a lot of dirt and dust.  

7. Security Upgrades

Enhancing security in your rental property boosts resident confidence and attracts quality applicants. You can start with essential measures like functional locks on all doors and windows, as required by law. For added appeal, consider upgrades like sturdy front doors, rekeyed locks, or outdoor lighting to enhance visibility. While advanced security systems can justify higher rents, even budget-friendly improvements can create a safer environment, increasing resident satisfaction and boosting your property’s value. 

Pro Tip: Regularly inspect and maintain your security features to ensure they stay effective. Simple actions like replacing worn-out locks or upgrading to motion-sensor lights can significantly enhance security. 

8. Fixture Upgrades

Attention to detail matters, especially when attracting residents. Small upgrades can greatly impact your home, so ensure your rental property shines before listing. Consider enhancing fixtures like ceiling fans and shower heads. Ceiling fans provide comfort year-round by cooling or distributing heat efficiently—check for smooth operation and fix any noise issues. Upgrading shower heads adds a touch of luxury, conserves water, and lowers utility costs, benefiting both you and your residents. 

Pro Tip: Even minor improvements like fresh paint or updated light fixtures can make your property feel more modern and appealing. Small changes can help you command higher rent and attract quality residents quickly. 

As you can see, if you maintain your rental unit in bits and pieces, the renovation costs for the rental property will invariably be higher, and you will end up passing up the rent for those months as the rental property will be vacant while renovating. So, expediting the renovation process and adapting a cost-effective strategy to save on those losses is important.  

BFPM: Your Trusted Partner for Property Renovations 

At BFPMInc., we have in-house, well-trained, and experienced maintenance teams to manage the renovation of your property. We also have access to third-party vendors and contractors throughout Southern California, so you get the best results and your project is in expert hands. 

Feel free to contact our experts at BFPMInc.