How Much Would You Spend to Renovate a Rental Property?

I agree with that breeze, mainly it depends on the use we want to give it and on the cost-benefit. Sure, why invest in something that isn't ours, but in fact we live there right?

 

I would never spend way too much for my rental property. I do not think there is any better way to put it but it is always best to spend very little on rental property.

 

For anything related to my properties that I rent out, I tend to be more practical in a way that I spend average price only on renovation. I don't buy the most expensive or premium material available. Let's face it, if you rent it out to someone, that person won't care for the property as if it's their own. At the end of the day, you will see that you will have to renovate again and it would be a waste if you used really topnotch quality materials. I only renovate using premier materials if it's a property that I personally use because then I know that I will know how to value it.

 

I believe it is advisable to spend quite a lot and definitely worth it to spend that way. I think it is really good if your tenants are happy by the property and stay without any problems. It is best in that way.

 

It depends on a lot of factors. I agree with the ones that say, going cheap is expensive. But I also agree that you don't want to pay the price for the best. You can find deals on quality products.

Buying the cheapest product will help to day but could cost you in the long run. One product that comes to mind if a faucet. I cheap one might not last more then a year or two in some cases. Maybe less with a rental tenant. If you can find a mid range or a little higher faucet that is on close out, on sale and so on, you could have a product that lasts for years for just a little more money.

For flooring. There is a big difference in flooring. Lets look at laminate. Some are sealed better and will hold up better to the odd spill. Some are not and will fall apart pretty quickly because of the water. That doesn't mean you should spend 5 times as much for the better flooring. Find deals. If you have more then a few units you might end up finding, through trial and error which products are worth buying and what isn't. Plus you might build a relationship with certain stores that might let you know about deals. Some might let you know about a product that they have that might not be enough to do a large job but would be fine for a smaller job. Tile for example. In a apartment you would normally have a small bathroom. You might be able to get a really nice tile for pennies because it is a discontinued product that has low stock.

Now the quality level you need to achieve would depend on some things. One is your target market. Like someone said you don't go all out for a $400/month apartment. So for the most part marble would be out of the question. I say for the most part because a small apartment would have a small bathroom. A bathroom counter top would be small. So if you have a big store that sold and installed a lot of marble, you might be able to find a small piece of "scrap" that is of no use to them. Pay a small amount to have it cut and your good to go. It would last much longer then a laminate counter top.

The only issue with that nice marble in the bathroom is it might seem out of place if the rest of the apartment has low level finishes. So unless you can find some other incredible deals then it might look out of place.

If you are renting out a executive suite for thousands a month you have to spend more. So that means skip the pressed wood and laminate counter tops. A $75 toilet isn't going to cut it.

Another thing to look at is your competition. If there isn't a lot of rentals available you don't have to do as much. As sad as that sounds. If there is a lot of apartments in your area, you will have to stand out. You have to give people a reason to buy yours rather then the other 15 available at the same price. Is your location better? Are you in a safer spot or have better security? Does yours look nicer? Cleaner? Better kept? Are you on a bus route?

If you have competition then you have to find ways to be better then them. That might mean spending a little to dress yours up or maybe lowering your rent to go against ones that are not as nice as yours.

At the end of the day, you can't spend too much. You have to see a return at some point. If you are doing a repair for a good, long term tenant, you might want to put in a good product. You want to keep a good tenant as long as possible. At the same time you still want to find deals any chance you can.

When it comes to appliances, you want to find a decent product. Like what someone mentioned, newer appliances will save money on electricity. If you pay it this saves you money. If the tenant pays, it is a selling feature. It could also save you on service calls and complaints about old appliances breaking down.

James

 

I do believe it depends on the kind of rental property you have. If the property is very famous then it is best to invest a lot upon it.

 

I believe it all depends on the kind of location you are in and it definitely depends on the kind of tenants you get. If your tenants are ready to shell out a lot of money then it is best to renovate it very well.

 

A question i keep asking...should i leave it to the responsibility of the tenant to renovate/repair some few things here and then or that is a call for disaster?...or i could be lenient about it but be firm in the fact that i'd like to see how the repairs are being done?