Owning a rental property in Folsom and the surrounding areas is a valuable investment, especially in a market that consistently attracts renters looking for a high quality of life. However, maximizing the return on your investment (ROI) requires more than just securing tenants; it’s about commanding a rental rate that reflects the highest and best value of your property. One of the most effective ways to achieve this is by making strategic updates to your rental home that not only improve its appeal, but also increase its market value.
Listed below are the top four updates that can help you get a higher rent for your property in our local market whether it’s Folsom, Placerville or anywhere in between. These updates have been chosen based on their potential to provide the best ROI to landlords, ensuring that your investment continues to grow over time.
1. Minor to Mid-Range Kitchen Remodel
The kitchen is often considered the heart of the home, and renters are no different from homebuyers in valuing a modern, functional kitchen. Upgrading your kitchen can have a significant impact on the rental value of your property. That said, you may not need to do a full overhaul of the kitchen to see great returns. According to a report by Remodeling Magazine, a minor kitchen remodel can recoup up to 134% of its cost in increased home value, making it one of the best investments you can make specifically for our market in California.
Key updates might include:
- New countertops & sink: Replace laminate countertops for affordable and durable options like quartz. Also replace the sink with a mid-priced stainless-steel option and update the faucet to match the new sink.
- Updated appliances: Energy-efficient stainless-steel appliances not only look great but can also save renters money on utilities.
- Cabinetry: Leaving existing cabinet boxes in place but replacing the fronts of drawers and cabinets with new shaker-style wood and new hardware.
2. Upgrade the Bathrooms
Bathrooms are another area where potential renters focus their attention. A clean, modern bathroom can make a significant difference in how a property is perceived. Equally important, an appealing and functional bathroom will lead to higher tenant retention and lower vacancy over the lifetime of the rental property. Key updates might include:
- New fixtures: Replacing old faucets, showerheads, and lighting with modern alternatives can make the bathroom feel more luxurious.
- Tile work: Adding or updating tile in the shower or on the floors can give the bathroom a polished, high-end look.
- Vanity: A new vanity with ample storage can make the space more functional and appealing.
Remodeling Magazine suggests that bathroom remodels can provide a return on investment of around 96%, depending on the extent of the upgrade.
3. Wood or Vinyl Plank Flooring
You may have the option to refinish existing wood flooring in your home. According to the National Association of Realtor’s report on remodeling impact, refinishing an existing hardwood wood floor can bring a return on investment of 147%. If the home doesn’t have existing wood flooring, installing a cost-effective and durable vinyl plank product can have an ROI of 118%. Many laminate planks are also water-resistant and are suitable for wet areas like bathrooms, laundry room and kitchens. This can be a much more cost-effective alternative to tile flooring.
4. Increase Curb Appeal
First impressions matter, and the exterior of your rental property is the first thing potential renters see. Enhancing curb appeal can not only attract more interest on the market but can also justify a higher rent. The exterior of the home has many sub-categories of improvements. Consider these updates:
- Garage Door: Replacing an outdated garage door can bring an ROI of up to 250% in the California market, specifically.
- Exterior paint: A fresh coat of paint or even power washing the exterior can make the home look new.
- New Front Door: Replacing an old front door with a grand entrance or modern 20-gauge steel door with a glass panel can show an ROI of 136-249% according to Remodel Magazine’s report.
Maximize Your ROI with Keyrenter Folsom Property Management
At Keyrenter Folsom Property Management, we understand that your rental property is a key investment for your financial future. That’s why we go beyond traditional property management services. We’re not just here to collect rent and handle maintenance issues; we’re your partners in maximizing your investment’s potential.
Our team stays on top of the latest market trends, ensuring that you’re informed about the best ways to improve your property’s value. We also offer our clients first looks at local investment deals, helping you grow your portfolio with high-performing properties. Additionally, our expert guidance can help you make strategic decisions that maximize the long-term ROI of your rental property. For example, our website’s free 10-year rental proforma will give you an in-depth cash flow analysis of your potential investments.
Our strategic partnerships of vetted and approved trade vendors also give our client’s reassurance that they are receiving fair-market quotes on labor and material for their projects. Our trade partners appreciate the steady flow of business we’ve built with them, and the result is a network of businesses that will honor quality work for fair prices. We’ve only partnered with trusted business in the Folsom and surrounding areas that are licensed, bonded and insured.
Whether you’re looking to make small updates or considering a larger renovation project, Keyrenter Folsom Property Management is here to help you get the most out of your investment. Contact us today to learn more about how we can assist you in achieving your property investment goals.