Whether you have invested in a fixer-upper or just need to do some minor updates to your investment property, Memphis CashFlow can help you from start to finish. Not only do we help our investors find properties, but we will also complete the renovations and even find renters! We can even offer property management services through our partner, Marathon Management.
But why should you renovate your property? Which improvements are really necessary? Keep reading for more information on how to get the most out of your rental property through smart updates.
Why Should You Do Renovations on Your Investment Property?
Increases Long Term Value
By upgrading a dated home, you are adding to the long term value of the property. It will increase your property value, which will come in handy if you ever decide to sell.
You Can Charge More Rent
An upgraded house allows you to charge much more rent than a house that is very dated. By performing even some basic upgrades, you will make much more money in the long run.
The IRS frequently views property updates as an investment as opposed to an expense. Therefore, you can usually write off the cost of investment property renovations on your taxes. If there are any repairs that need to be done, you can typically include those in what you are writing off for renovations.
Top Investment Property Renovations
There are a number of renovations you can do that will add to your property value and let you charge more rent. A smart move is to first look at the neighborhood and look at similar homes. That will give you a good idea of the standard in that particular area so that your upgrades are competitive with ones in surrounding houses.
If there are any repairs that need to be fixed, it is recommended to do those when you are doing upgrades to the house. This can include structural issues, insulation gaps, plumbing problems, etc. If you don’t fix such problems early on, they can get worse and potentially cost you more money down the road. It can also cause you to miss out on rent if the tenants have to vacate the house during repairs.
Kitchen and Bathroom Upgrades
The most common (and best, in our opinion!) areas of the house to upgrade are the kitchen and bathrooms. These are the areas that are most looked at, and the kitchen is possibly the room of the house that gets the most time spent in it. It is smart to spend a little money on nice countertops, as well as either new cabinets or painting the existing cabinets.
Putting modern fixtures throughout the house can do wonders in helping to transform the space. Things to look at replacing would be light fixtures, cabinet hardware, faucets, and showerheads. Sticking with the same color and material can help to add cohesion throughout the house.
Putting clean, contemporary flooring in a house can make a world of difference. While carpet is a bit cheaper than laminate or hardwood, it tends to get dirty quickly, and it is harder to keep clean. An option to look into is a new kind of vinyl- vinyl wood planks. They have the look of hardwood, but they are waterproof and easy to clean. They also stand up to heavy traffic, making them great for rentals.
Putting fresh, neutral paint on the walls is a low-cost way to upgrade your rental. Not only will it make the house look updated, but a nice neutral gray or beige will also give the house a contemporary, fresh look.
Fencing not only adds a sense of security, but it makes the backyard much more private. It is best to do a wood plank fence as opposed to chain link, to continue adding to your home value.
How Memphis CashFlow Can Help
We have made the case for why you should upgrade your investment property, but we know that it can be a lot of work. You can either do all of the repairs and updates yourself, or you can hire a contractor. Either way, you will have to spend a lot of time and energy getting the upgrades done. This is where Memphis CashFlow comes in.
We are a one-stop-shop for finding and renting out your investment property. Not only can we help you to find the investment property, but we will also contract with the appropriate vendors and complete all of the necessary repairs and upgrades, without you having to lift a finger. We will do all of the heavy lifting for you.
Call Memphis CashFlow today to get started! We will help you to build wealth with real estate, one property at a time.