How Much Would You Spend to Renovate a Rental Property?

Discussion in 'Landlord & Rental Property Questions' started by LindaKay, May 2, 2014.

  1. LindaKay

    LindaKay Guest

    Joined:
    Apr 2014
    Posts:
    47
    Likes Received:
    0
    How much would you spend to renovate a rental property?

    I'm not really asking for an exact amount. I mean, more or less -- would you go with cheaper materials or the best of the best? Something in-between?

    I almost think I would go with cheap flooring if I were buying carpet or something like that. I mean, you never know if the tenant will destroy it, so it won't be as upsetting if the carpet is cheap.

    I think for the most part, I would go with new things that are cheap. Not the cheapest of the cheap (like press-and-stick tiles...no way), but something affordable.

    I can see the other side, though, because you are making renovations to YOUR property. I just figure there is less to lose if you get a bad tenant.

    What do you think?
     
  2. Kate

    Kate Senior Investor

    Joined:
    Apr 2014
    Posts:
    515
    Likes Received:
    5
    This would totally depend on what kind of property it is that I'm buying. If it's a penthouse in Manhattan with $5000k rent, I'm going to spend a lot more for renovations than I would for a $400/mo house in planet small town that I bought for $60k.

    I'd only put "cheap" (but like you said, NOT shoddy!) renovations into a place that has low rental income potential... otherwise I'd be facing replacement in a few short years, I assume.
     
    Last edited: May 2, 2014
  3. LindaKay

    LindaKay Guest

    Joined:
    Apr 2014
    Posts:
    47
    Likes Received:
    0
    Yes, I agree that you would definitely need to do more with that Manhattan penthouse. I live in planet small town, so I guess that's why I feel like I do. I've seen a lot of nice rentals that clearly had cheaper materials but that still looked nice and in good condition.
     
  4. Kate

    Kate Senior Investor

    Joined:
    Apr 2014
    Posts:
    515
    Likes Received:
    5
    I live in planet small town, too. :D But our rental is the outskirts of D.C. and the real estate market is so different... well, I should say things to consider are very different. (And what tenants expect is vastly different, too.)
     
  5. crimsonghost747

    crimsonghost747 Senior Investor

    Joined:
    Mar 2014
    Posts:
    1,722
    Likes Received:
    6
    For me it would depend mainly on what the apartment looks like in the first place. Things that need renovating I'd renovate (using cheap-ish but still good materials) and I'd leave the rest as it is.

    Whereas for my own house I prefer to renovate small things every now and then, for rental properties it's easier to do a bigger renovation once in a while (when changing tenants) and that's it. So most likely some small touch ups when first getting the place and then seeing what needs to be done every couple of years.
     
  6. LindaKay

    LindaKay Guest

    Joined:
    Apr 2014
    Posts:
    47
    Likes Received:
    0
    Yes, I like doing smaller things around our own house. I like higher-quality here for the most part, although some cheap things are still good. I think it's nice to totally swap out the flooring and repaint the walls, at least, each time that a tenant moves out (unless it was a picture-perfect tenant or someone who didn't stay there long.) It doesn't cost that much if you use cheaper materials, and the home will always look new.
     
  7. waseem59

    waseem59 Well-Known Member

    Joined:
    May 2014
    Posts:
    89
    Likes Received:
    0
    It depends on the property and the things to be renovated, it includes the size of the property and the things to be changed, It depends on the property
     
  8. Searchy

    Searchy Member

    Joined:
    May 2014
    Posts:
    5
    Likes Received:
    0
    I made the mistake of renting for cheap an apartment, lured by the landlord's allowance to make of it my own home and therefore investing all the money I could in remodeling and make the place comfortable.

    What truly dislikes me about rentals is exactly being limited by landlords that don't allow you to modify anything and some of then not even to hang pictures in the walls, so having a "comprehensible" landlord making me do whatever without needing to ask him for approval first was such great until I had trouble to pay the rent.

    Investing all my money in home improvements, suddenly I exceeded my own budget and began to fall behind rent payment due dates, and eventually had to ran away to avoid the landlord demanding not just the owned rents but the penalization stipulated in my contract.

    I lost a fortune investing too much in an apartment that I was unable to keep, so my advice is only investing any money left after you have carefully planned all those monthly expenses which are priority.
     
  9. tspires2

    tspires2 Member

    Joined:
    May 2014
    Posts:
    10
    Likes Received:
    0
    This would totally depend on the property itself however, I would attempt to purchase the nicer material and try to get them on sale. I attempt to get the material on sale as well as discontinued if at all possible! However be very careful when making your selections, keep it natural so in the event you need to repair you can possibly with out having to replace totally. With that being said I do normally try to buy a few additional pieces of what ever I use that is discontinued because you will need to repair.
     
  10. hnatalieann

    hnatalieann Guest

    Joined:
    May 2014
    Posts:
    41
    Likes Received:
    0
    It would depend on the area, the house itself and the money in my bank account. It's hard choosing the right tenants out there. We have had several horrible stories and it's just sad. Trusting a stranger to care for the home as if it's their own can be tough. I don't want to throw money away, yet I want the house to be nice. It's just tough!
     

Share This Page