Maintaining rental properties costs money. To maximize ROI, you need to focus on the upgrades that matter. Choose renovations projects that would attract high-quality tenants and keep them satisfied enough to stay longer. Making functional upgrades could also boost the investment value of the property.
Cost is always a factor in renovating rental properties. Covenant Contracting Group can help renovate properties in NYC, but you should still know the upgrades that tenants are looking for when they tour properties you manage. Based on studies, you can make high-impact improvements with the highest returns when you spend on the following.
Garage Door Replacement
Across the country, garage door replacement has the highest ROI at 93%. With costs of about $4,000, this low-cost improvement affects a potential renter’s first impression of the property. Stylish, functional, and well-insulated garage doors appeal to tenants. Aesthetics and practicality aside, well-maintained garage doors could reduce heating and cooling costs.
Updating the kitchen could provide an ROI of about 75.6% if you focus on small modifications to give the room a more cohesive look. A fresh coat of paint could instantly improve the interior. New fixtures, laminate flooring mimicking hardwood floors, and new appliances with a consistent feel to replace outdated ones can give kitchens an updated look while keeping renovation costs in the mid-range.
Manufactured Stone Veneers
Faux stone veneers go a long way in attracting potential renters. Veneers mimic the appearance of real stone exteriors for a fraction of the affordability. Veneer exteriors can resist corrosion and are also durable.
Aside from increasing a property’s value, tenants find manufactured stone veneers attractive, and the potential ROI for this renovation is at 91.9%.
Deciding what part of the property should be renovated to maximize revenues is not an easy task. Focus on low-cost investments that could attract more tenants and be durable enough to last for years. When in doubt, consult Covenant Contracting Group, a commercial general contractor in NYC, to know other upgrades that you can do to improve the occupancy rates of the properties you manage.