Renovation for Profits in Two Ways

There are a great many articles out there for homeowners with instructions for renovations that pay for themselves and increase the ultimate resale value of a home. One of those articles recently published at NuWire.com discussed specific remodel items that provide the best return for the investment. All of this of course applies to the investor as well, as they will eventually be selling the property. However, there’s more to it, and it’s about appealing to renters and getting top dollar for monthly rent.

It’s a renter’s world these days, with few people able to get a mortgage, and they’re still not that fired up about the housing market, having watched family and friends lose their equity or even their homes over the last six years. With rental demand growing, rents are growing with it of course. The thing is that today’s renters are frequently people who lost their home to foreclosure, and they want a similar home with desired features. Other demand is from those who in the past would have been first time home buyers. They are generally younger, and they also want the latest in amenities.

Providing the amenities and features tenants want brings higher than market rents, so there is value in learning what features are in demand and which can be adopted with a good return on investment. Some of the improvements mentioned in the article are:

• Upscale garage doors will recoup around 103% of the cost to make the improvement.
• Steel front doors are valued for security and energy efficiency, and around 86% of the investment is recouped in resale.
• Fiber-cement siding is recommended as a high value renovation, though it’s more for resale as the low maintenance aspect isn’t of much concern to renters.
• Adding a wooden deck is definitely high on the list, and is appealing to buyers and renters.
• Minor kitchen remodels are a major enhancement. The key is to keep it “minor,” as the cost of major work is difficult to recoup. Kitchens are important, so in buying a rental home, get one with a kitchen that won’t require a major outlay to make it more modern.

Get more rent dollars, keep tenants longer, and sell for more by doing intelligent remodeling.