The Best Rental Property Renovations in 2024
As a landlord, you should expect to renovate your rental property every couple of years. In this guide, we cover everything you need to know about rental property improvements and how they can benefit you in the long-run.
Attracting and retaining tenants in today’s competitive rental market requires rental property owners to offer well-maintained and updated units. In addition to attracting tenants, rental property upgrades can increase rental income, reduce vacancy rates, and improve overall tenant satisfaction.
In this guide, we will provide you with details on rental property renovations and how they can benefit you in the long run. Whether you’ve been a landlord for years or are just starting out, you’ll find valuable insights and practical tips to help you make informed decisions about upgrading your investment property.
Table of Contents
Identify your rental property upgrade goals
Before deciding to renovate your rental property, consider what your goals are. For example, is your goal to increase your rental income? Reduce vacancy rates? Improve tenant satisfaction? Improve curb appeal? Or increase the value of your property? Setting specific goals can help you narrow down which rental property renovation ideas are right for you.
For different rental property renovation ideas, keep reading.
Rental property maintenance vs. upgrades
Many people use the terms “rental property maintenance” and “rental property upgrades” interchangeably. However, there are some key differences between the two.
Maintenance refers to the tasks that are necessary to keep a rental property in good condition and habitable. Examples include repairing leaky faucets or replacing broken windows. On the other hand, upgrades are improvements that are made to a rental property to increase its perceived value. Examples include remodeling the kitchen, adding a new bathroom, or replacing carpet with hardwood floors. Upgrades are typically more expensive than maintenance tasks, but will increase your rental revenue from the property.
Below, you can find a table of common maintenance tasks, their associated costs, and the average frequency in which the maintenance task should be performed.
| Maintenance Task | Associated Costs | Maintenance Frequency |
|---|---|---|
| Replace smoke detectors | $10-$30 | Every 10 years |
| Change air filters | $5-$20 | Every 3 months |
| Clean gutters | $50-$150 | Twice a year |
| Repair leaky faucets | $50-$200 | When detected |
| Replace broken windows | $100-$500 | When detected |
| Paint exterior of building | $500-$2,000 | Every 5 years |
| Replace roof | $20,000-$25,000 | Every 20-25 years |
| Replace HVAC system | $2,000-$5,000 | Every 10-15 years |
| Replace water heater | $2,500-$7,500 | Every 6-12 years |
| Replace carpet | $1,000-$3,000 | Every 5-15 years |
Different types of rental property renovations
New Appliances
Adding new appliances to a rental property has many benefits. For starters, it makes the property more attractive to potential tenants and can even raise rental prices. New appliances look modern and are more energy-efficient as well, which will save tenants money on utility bills. They also require less maintenance and repairs, keeping both landlords and tenants happy.
Here’s a list of common appliance upgrades, their costs, and respective lifespan. Please note, these costs are average approximations and can vary by season and your geographical location.
How much do appliances cost?
| Appliance | Average Price Range | Lifespan |
|---|---|---|
| Gas Range (Stove/Oven) | $400-$750 USD | 15 years |
| Refrigerator | $300-$1,600 USD | 10-18 years |
| Dishwasher | $300-$500 USD | 10 years |
| Microwave | $50-$300 USD | 7-8 years |
| Washing machine | $450-$750 USD | 10-13 years |
| Dryer | $250-$500 USD | 10-13 years |
| Grill | $300-$600 USD | 5-15 years |
* Pricing information was pulled from lowes.com and homedepot.com
What rental appliances are landlords required to provide in California?
Landlords in California are not legally required to provide any appliances in rental properties.
The law only requires landlords to provide basic necessities like a heat source, hot and cold running water, a working sewage system, and a functional electrical system. Appliances are considered amenities, not requirements.
However, many landlords choose to provide common appliances like refrigerators, stoves/ovens, and sometimes washers and dryers to make the rental unit more attractive to potential tenants. If a landlord chooses to provide appliances, they are responsible for maintaining and repairing them. However, the landlord can specify in the lease that the tenant(s) are responsible for appliance upkeep.
For a full list of what a landlord must provide in California, check out this PDF released by the California Department of Transportation.
Shopping tips for new appliances:
Roof Restoration
Replacing the roof is one of the most expensive rental property renovations. Even though it is a major expense, it can have a major impact on the safety, value, and overall condition of your property.
A new roof can help to prevent weather and water damage of all kinds. A damaged roof, on the other hand, can allow water to leak into the building, which can cause serious damage to the structure and the interior finishes. This can lead to costly repairs and even health problems for your tenants. A new roof can also help to protect your property from wind damage. In areas prone to hurricanes and other storms, a strong roof is a lifesaver.
How much does it cost to replace a roof in Orange County?
The average cost of a new roof in Orange County is around $20,000. Replacing the roof on your rental property is a major investment, but it is one that can pay off in the long run by increasing the value of your property.
Kitchen Renovations
Best counters for a rental property
What is the best countertop material for a rental property?
- Laminate: Laminate is a budget-friendly option that is available in a variety of colors and patterns. It’s also easy to clean and maintain.
- Solid surface: Solid surface countertops are made from a mixture of acrylic resins and minerals. They are durable, non-porous, and resistant to stains and scratches.
- Quartz: Quartz countertops are made from a mixture of quartz and resin. They are very durable and resistant to heat, scratches, and stains.
- Granite: Granite is a natural stone that is very durable and heat-resistant. It is also available in a variety of colors and patterns.
- Concrete: Concrete countertops are a unique and stylish option. They are durable and can be customized to any color or shape.
- Soapstone: Soapstone is a natural stone material that is soft and easy to work with, but it is also very durable. Soapstone countertops are resistant to heat, scratches, and stains, and they develop a beautiful patina over time.
- Stainless steel: Stainless steel countertops are a popular choice for commercial kitchens and other high-traffic areas due to their durability and ease of cleaning. They are resistant to heat, scratches, and stains, but they can be noisy and show fingerprints and smudges.
Types of countertop material by price
| Countertop Material | Average Price | Lifespan |
|---|---|---|
| Laminate | $19-$45 per square foot | 20-30 years |
| Solid Surface | $64 per square foot | 15-30 years |
| Quartz | $80 per square foot | 10-15 years |
| Granite | $70-$200 per square foot | 100 years |
| Concrete | $100-$135 per square foot | 100 years |
| Soapstone | $55-$100 per square foot | 20 years |
| Stainless Steel | $70-$160 per square foot | 20 years |
* Pricing information was pulled from homedepot.com, hgtv.com and forbes.com.
Best cabinets for a rental property
- Laminate cabinets: Laminate cabinets are a good choice for rental properties because they are durable and easy to clean. They are also relatively affordable, making them a good option for landlords on a budget.
- Solid wood cabinets: Solid wood cabinets are a more expensive option than laminate cabinets, but they are also more durable and can last for many years. They’re also a good choice for rental properties that are in historic districts.
- Metal cabinets: Metal cabinets are a good choice for rental properties that are in industrial or modern-style buildings. They’re durable and easy to clean, but they can be more expensive than laminate or solid wood cabinets.
- Thermofoil cabinets: Thermofoil cabinets are a good choice for rental properties that are in humid climates. They are made of a wood composite that is covered with a thin layer of plastic. This makes them resistant to moisture and warping.
Bathroom Remodeling
Bathroom remodeling for your rental property can range from a couple hundred dollars to a couple thousand dollars. Budget-friendly bathroom upgrades include replacing faucets, showerheads, and towel bars. These small, but impactful changes can instantly increase the aesthetic appeal of the space.
If you have more money to spend, consider refreshing the vanity area. Repainting or refacing existing cabinetry, replacing hardware, and updating the countertop and sink can breathe new life into the space without the need for a complete overhaul. Additionally, installing a new mirror with modern framing or backlighting can add a touch of luxury and perceived property value to tenants.
On the other hand, if you’re ready to spend a couple thousand dollars to upgrade your rental property bathrooms, consider replacing the flooring, repainting the walls, and/or replacing the shower curtain with a shower door. We always recommend choosing durable and easy-to-clean materials for your rental. For flooring, consider options such as vinyl or tile, which are not only budget-friendly but also resistant to moisture and wear. For the walls, a fresh coat of white or neutral paint can increase the perceived space and brighten the ambiance. Finally, if you have a shower curtain, consider replacing it with a shower door for a completed bathroom renovation look.
When remodeling bathrooms in rental properties, focusing on practical upgrades that improve aesthetics, functionality, and durability can help landlords maximize their return on investment.
Open Floor Plan
Does open concept increase value?
Flooring upgrades
- Laminate flooring: Laminate flooring is affordable, easy to install, and durable. However, it’s not waterproof. Therefore, to preserve this flooring, tenants will have to be careful to fully dry spills.
- Vinyl flooring: Vinyl flooring is also an affordable, easy to install, and durable option. In contrast to laminate flooring, vinyl flooring is waterproof. This extra feature offers a huge benefit to landlords, as they can have peace of mind that water spills by tenants won’t damage their property.
- Hardwood flooring: Even though hardwood flooring is expensive, it’s classic, elegant, and increases the value of your property. However, not all hardwood floors are waterproof. If you want waterproof hardwood floors, you must request an additional finish.
- Tile flooring: In addition to being durable and waterproof, tile flooring offers a variety of styles and colors. This is a great option, although it can also be expensive and difficult to install. In addition, tile flooring can be cold and uncomfortable to walk on barefoot.
- Carpet flooring: Carpet is affordable, soft, and comfortable. But it’s not waterproof and can be difficult to clean.
We find that tenants often prefer hard flooring options over carpet flooring. Therefore, properties with laminate, vinyl, hardwood, or tile floors can typically command higher rents.
Ultimately, the best flooring option for your rental property will depend on the budget, the desired look, and the amount of traffic the floor will receive.
New windows
Installing new windows in a rental property offers lots of benefits. For starters, investing in double-pane or energy-efficient windows offers great insulation advantages for the unit. According to a report by Realtor.com, the U.S. Department of Energy estimates that you (or your tenants) will save between $126-$465 per year by replacing single pane windows.
Best windows for rental property
- Vinyl windows: Vinyl windows are a popular choice for rental properties because they are durable, energy efficient, and affordable. They are also easy to clean and maintain.
- Aluminum windows: Aluminum windows are another durable and energy-efficient option. They are also fire-resistant and can help to improve security. However, they can be more expensive than vinyl windows.
- Fiberglass windows: Fiberglass windows are usually more expensive than vinyl, however, they are better at retaining their structural integrity during the hot summer months.
- Composite windows: Composite windows are made from a combination of materials, such as wood, vinyl, and fiberglass. They offer the best of both worlds, combining the durability and energy efficiency of vinyl windows with the beauty and warmth of wood windows. However, they can be the most expensive option.
| Window material | Average Price | Lifespan |
|---|---|---|
| Vinyl | $200-$500 per window | 20-30 years |
| Aluminum | $300-$700 per window | 40 years |
| Fiberglass | $700-$1,000 per window | 40 years |
| Composite | $600-$1,200 per window | 40 years |
Fresh Paint
In conclusion…
We hope you enjoyed these rental property renovation ideas! In addition to increasing the value of your property, you also get to claim a rental property tax deduction after upgrading your property.
Hiring a Property Management Company
Managing the responsibilities and repairs of your rental can be cumbersome and time consuming. At Good Life Property Management, we believe that life should be enjoyed, not spent sweating the small stuff. That’s why we set out on a mission to make property management easy. We care about you, your property, and your tenant. And we do it all, so you can Live the Good Life.
To figure out how much your property can rent for, visit our free rent estimate calculator for landlords. To speak with one of our Orange County property management experts, schedule a call.
Steve Welty
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