As a real estate investor in San Mateo, we do not doubt that you understand the importance of renovating your rental properties to increase their value and attract quality tenants. Making updates and improvements will help you stay competitive in the rental market. They’ll set your property apart from others and they’ll get the attention of your best tenants. Renovations will also retain the current tenants that you have, especially if they’ve been asking for a new appliance or fresh paint.

Money matters too, however, and with the abundance of expensive renovation ideas available, it can be overwhelming to determine where to begin and what to prioritize.

We recommend that you choose the renovations that will have the most impact on your return on investment (ROI). To help you get started, we’ve spent some time thinking about where the most cost-effective renovations have been in the properties we professionally manage in San Mateo. We’ve put together the top six ROI-boosting renovations that will help increase the value of your rental properties and attract quality tenants.

1. A Fresh Coat of Paint

Paint has increased in price; you may have noticed.

However, fresh paint is still an excellent way to upgrade your property on any budget. A fresh coat of paint can work wonders for a rental property. Not only does it transform an outdated property into a modern and attractive one, but it also gives the impression that the property is well-maintained and cared for. A fresh coat of paint can increase the value of your property and appeal to renters. When they walk into your property during a showing, they’ll feel like the home is brand new because the paint is brand new.

While the interior paint is usually where you’ll focus, especially during turnover periods, make sure you pay attention to your exterior paint as well. Most homes need a new coat of paint every 10 years or so. It can make a big difference in how you attract tenants and where your rental value lands.

2. Kitchen Upgrades

The kitchen gets a lot of attention in any home, and for tenants, a well-designed kitchen will make them want to move in. When you’re looking for ways to update and upgrade your home, know that you cannot go wrong in the kitchen. It could be something simple, like installing a tile backsplash behind the sink or the stove. Maybe some new fixtures like drawer pulls and cabinet knobs. These simple but aesthetically pleasing items will increase the value of your property.

Take a look at your appliances. If you’re willing to upgrade those, you’ll make your kitchen stand out. Stainless appliances are great, but you don’t have to buy them if they’re cost-prohibitive. As long as everything matches, you’ll make the kitchen look clean and pulled together. Consider energy-efficient appliances. This is becoming more of a priority for residents, who are citing care for the environment and a desire for lower utility bills as reasons that sustainable and efficient appliances are big selling points.

You don’t have to replace everything in the kitchen; simply updating the countertops, cabinets, or appliances can make a big difference.

3. Bathroom Upgrades

While the potential tenants coming through your property will prioritize how the kitchen looks and feels, they’ll also pay attention to the bathrooms. This is a room that should be clean, modern, and functional. Upgrading the bathroom can be as simple as changing the fixtures, re-tiling the floor, or installing a new sink. Renovating the bathroom can increase the value of your property and make it stand out on the rental market.

4. Invest in Energy-Efficient Upgrades

We discussed this a bit when we were talking about energy-efficient appliances. Green upgrades not only make your rental property more attractive to tenants, but they also help reduce energy costs. Consider adding energy-efficient features such as LED lighting, programmable thermostats, or low-flow toilets. These upgrades can increase the value of your property and impress existing and future tenants.

5. Flooring Upgrades

Here is another important upgrade you can make to your property to maximize ROI.

Floors.

Outdated or damaged flooring can make your rental property look unappealing and uninviting. Consider updating the floors to attract quality tenants. Installation of new carpet, hardwood floors, or tiles can make a significant difference in the overall appearance of the rental property. If you’re committed to carpet, we recommend that you invest in durable, high-quality carpet that’s a neutral color and likely to withstand a lot of traffic from people and even pets.

If you really want to make a difference in what your property is worth, however, you’ll tear up the carpet and install hard surface flooring. It doesn’t have to be an expensive hardwood; there are faux woods that look fantastic and laminate floors that are attractive, affordable, and easy to put into place. Tenants prefer hard surface floors because they’re easier to keep clean and maintain. They’re also healthier; carpet does a great job of trapping dust, dirt, and allergens.

6. Curb Appeal Upgrades

Finally, remember that curb appeal counts. Keep your landscaping clean and simple. Contract with a lawn care company to ensure that the lawn is mowed, the bushes are trimmed, and the weeds are pulled. If you’re renting out a multifamily space with a courtyard or any common areas, make sure they’re attractive and inviting. A property with good curb appeal sends the message that the owners care for the place, and this can attract quality tenants. Get the attention of prospective renters with a great-looking exterior.

Renovations are essential in increasing the value of your rental property and attracting quality tenants. These six ROI-boosting renovations including fresh paint, kitchen upgrades, bathroom upgrades, energy-efficient upgrades, flooring upgrades, and curb appeal upgrades, can make a significant difference and add value to your property. Be sure to prioritize these renovations based on your budget and the needs of your target tenants. By doing so, you can elevate your rental property and attract quality tenants.

These are our general suggestions, but the best advice will come when we can consider your specific property and its unique features. Let’s talk about the best upgrades for your particular ROI. Contact us at Bayside Management.

Founded in 1982 in Marin County, Bayside Management has expanded to offer full-service San Mateo property management to the entire San Francisco Peninsula. We manage single-family properties, multi-unit complexes, commercial properties, and homeowner associations.