What’s the best way for landlords to improve the ROI for their Seattle rental properties? One of the most effective strategies is making smart property upgrades!
As a top provider of property management in Seattle, we’re always looking for ways to help property owners maximize their investment. One of the best ways to do that is by making upgrades that appeal to tenants and justify a rent increase. After all, in a competitive market, renters are looking for the best features and amenities.
However, not all upgrades are created equal. Some renovations pay off, while others don’t add much value.
So, before upgrading, let’s walk through some of the best ways to improve your property and increase your rental income.
Are the kitchen appliances in your rental property outdated? If they’re older than your current tenants, it’s time to upgrade.
While retro styles may be charming, renters want modern conveniences. Investing in new appliances makes your property more attractive to renters and can often justify charging higher rent. There is no need to go overboard with top-of-the-line models—mid-range, reliable options will do the trick.
Depending on the quality and brand, replacing outdated or inefficient appliances typically ranges between $2,000 to $5,000. If you opt for energy-efficient models, you may be able to reduce utility expenses (if utilities are included in the rent) while offering a feature that tenants actively seek.
Landlords can often increase rent by $50 to $100 per month after upgrading appliances, which could amount to an additional $600 to $1,200 annually.
Over time, this increase can cover the initial upgrade cost within a few years while also making the property more attractive to higher-quality tenants. Additionally, energy-efficient appliances might qualify for tax credits, which further improves the ROI.
Today’s tenants expect their homes to be tech-friendly. A few simple upgrades can make a big difference in keeping tenants happy and increasing your rental income.
Adding USB outlets, smart thermostats, or wireless doorbells are all relatively inexpensive upgrades that will make your property stand out. You can also improve internet and cell service connectivity by installing boosters or ensuring nothing is blocking signals.
These tech updates are relatively inexpensive. Adding USB outlets costs around $150 per unit, smart thermostats cost around $250, and installing a video doorbell can range between $100 and $200.
If you opt for home automation systems, the costs will be on the higher end but still manageable.
A slight rent increase of $25 to $50 per month can quickly recoup the cost of these upgrades. Additionally, smart home features appeal to millennials and remote workers, increasing the desirability of your property and reducing vacancy periods.
A fresh coat of paint is an easy way to update your property and make it more inviting. However, color matters!
Avoid bold, trendy colors that may not appeal to everyone. Instead, stick to modern neutral shades and allow tenants to easily envision their furniture and décor in their new space.
Paint is one of the least expensive upgrades, yet it delivers significant returns.
Painting the interior of a property can range from $1,000 to $2,000, depending on the size of the unit and the paint quality. This is a relatively low-cost upgrade compared to other renovations.
While you might not be able to increase rent dramatically based solely on paint, it contributes to the overall marketability of the property. Fresh paint can help attract tenants faster, leading to lower vacancy periods and higher tenant satisfaction.
In markets where demand is high, this small investment can justify a modest rent increase, helping you recoup the costs within a year or two.
The kitchen and bathrooms are two of the most important rooms in a home. They’re also the rooms that can quickly show wear and tear. Updating these spaces doesn’t have to be expensive, but small changes can make a big difference.
Consider replacing countertops, updating faucets, or re-grouting tile. You might also consider painting cabinets or updating flooring. These smaller upgrades can give your property a fresh, modern look without breaking the bank.
The ROI for these kinds of upgrades is often high. Tenants are willing to pay more for properties with modern kitchens and bathrooms, and small changes can significantly boost your property’s appeal.
The cost of a bathroom or kitchen renovation depends on the scope of the work. For instance, replacing countertops, adding new fixtures, or upgrading cabinets may cost between $5,000 and $15,000.
However, a complete renovation, including flooring and high-end appliances, could push costs higher.
A well-renovated kitchen or bathroom can boost rental rates significantly, allowing you to charge up to $200 more per month. This can generate an additional $2,400 per year. If planned well, these renovations can pay for themselves in 3–5 years, and your property can command a higher price point over the long term.
First impressions matter! If the exterior of your property is uninviting, potential tenants might pass on even checking out the interior.
Simple upgrades like a fresh coat of paint on the front door, adding some landscaping, or installing exterior lighting can improve your property’s curb appeal. These small changes go a long way in attracting tenants from the moment they see your property.
Basic improvements, such as painting the front door, planting low-maintenance landscaping, or updating outdoor lighting, cost relatively little but have a big impact. More involved exterior work can be pricier but adds considerable value, such as repainting the entire house or updating the siding. Curb appeal enhancements may not directly increase rental rates, but they can significantly reduce vacancy periods by making the property more appealing to passersby and online searchers.
Properties that look inviting and well-maintained rent faster, ensuring your property generates income without extended vacancies.
Not every upgrade is worth the cost. It’s essential to evaluate the cost of each potential upgrade carefully and whether it will offer a solid return on investment.
By strategically choosing upgrades that offer the highest return on investment, you can enhance your property’s appeal, increase tenant satisfaction, and maximize your rental income over time.
Choosing the right upgrades can feel overwhelming, especially if you’re trying to balance the cost of improvements with the potential to increase rent. That’s where a property manager can help!
At Real Property Associates, we know the Seattle rental market inside and out. We can guide you through which upgrades will deliver the best return on investment for your property and connect you with contractors to get the work done. Our Free Make Ready Checklist will help you ensure your property is move-in ready for your next tenant! Download it today!