The decision to invest in a rental property is always exciting, but deciding whether or not to take steps to renovate once you’ve purchased can be a bit trickier. Renovating an investment property isn’t quite the same as renovating the home you live in, and it’s fair to say that renovating is a significant investment of its very own. It can also be a time-consuming task that leaves some homeowners daunted before they’ve even started. That said, there are many benefits to deciding to upgrade your property that are both personally rewarding and financially lucrative in the long run. The following are five reasons to renovate your investment property and ultimately take your business to the next level of excellence.
You Can Expect an Increased Return on Investment
For many homeowners, the goal of an investment property is to see profit margins increase over time. Making the decision to invest in renovations is a great way to achieve an increased return on investment in the long run. While this can be the result of many factors, a big one is the fact that renovating an investment property typically means reducing costs you would otherwise put towards maintenance and operations. Trying to keep up with a collection of small, yet essential repairs over the course of each year, particularly on older homes, can be extremely costly in the end. If you’re constantly having to send out technicians to deal with maintenance issues along the way as well, that means less money in your pocket.
Investing in a renovation that takes everything into account from old appliances to run-down features that need an upgrade could have you reducing your overall costs once the renovation is complete. A renovation is also an opportunity to invest in energy-efficient appliances and home amenities that reduce annual costs even further. If you’re currently only breaking even on your passive income goals due to regular repairs of electrical units, appliances, and plumbing, it’s definitely worth your while to put your money towards renovations instead and look forward to more cost-efficient business management ahead.
Watercolor Pet Friendly Home
You Can Attract a Wider Range of Prospective Tenants
If you’re looking to attract a wider variety of prospective tenants year-round, renovating your investment property could be the defining factor. Properties that are outdated have a tendency to attract those who are just passing through, but investing in appealing and chic upgrades throughout your investment property is a good way to catch the eye of those who might be looking for longer stays. Including renovation additions like an in-home washer and dryer, making your property pet-friendly, or upgrading outdoor spaces is a sure way to capture the attention of families, and those who might be looking to book work-from-home experiences with more booking dates in mind as well. The inclusion of new flooring, upgraded bathrooms, and modern light fixtures is not lost on quality guests who are looking for a convenient and stylish space to enjoy during their getaway.
You Can Count on Happier Guests and a Better Homeowner Experience
Taking the time and effort to renovate your investment property is a good way to leave your guests happier overall. Booking return guests and earning referrals begins with creating experiences on-site at your property that guests can rave about once they return home. Making sure visitors are treated to a home that’s modern, efficient, comfortable, and convenient leaves a lasting impression and is likely to leave your guests coming back for more! For homeowners, renovating an investment property can be equally satisfying. If you’re a creative-minded person, the opportunity to add a personal aesthetic touch to the property you’re renting out to others can make the business feel that much more personal. When you take pride in the design aspects of the home you own, there’s a good chance that will be reflected in the overall guest experience too.
You Can Expect Improved Long-Term Resale Value
You might not own your investment property forever, but investing in renovations today is a good way to improve your property’s long-term resale value. Some factors that contribute to overall value like the home’s location or market trends can’t be changed, but renovations can definitely help increase the property value for future sale prospects. An energy-efficient home with modern features, amenities, and appliances throughout that also has incredible curb appeal is something buyers are willing to pay more for. These features also contribute to an easier process when you’re looking to cash out refinance or build up an impressive portfolio of valuable homes to put on the market at a later date.
You Can Stay Competitive in Your Specific Market
The vacation rental industry is a dynamic one and with its continued growth comes increased competitiveness. There’s a good chance that your investment property sits within easy reach of many others, which makes staying competitive in your market that much more important when you want to see profits increase over time. Investing in renovations and upgrades will help your property stand out in a crowd, while also giving you reasons to enjoy setting higher rents. Your renovations should take into account the amenities other properties in your area include as well as unique ideas that aren’t seen regularly in your area that guests will love. Once your upgrades are complete, you’ll want to be sure your marketing approach highlights the changes you’ve made and continues to showcase one-of-a-kind features that you’ve invested in.
Reach Out Today to Learn More About Property Management Services with Dune Vacation Rentals
When some well-deserved assistance caring for your rental property would go a long way, the team at Dune Vacation Rentals is here to help. Our professional property management team can help you realize the full potential of your investment home from top to bottom. We handle everything from home evaluations and marketing to customer care, home maintenance, and beyond. If you have plans to renovate, we’re more than happy to provide insight on great options for maximizing the process. Reach out today to learn more and to get started!
