It’s not uncommon for property owners to experience a lull in their rental business. While location, season, and the economy are some external factors that can weigh down your investments, there’s more to it. As a landlord, you should see yourself as a marketer providing much-needed housing services. Thus, improving the quality of services you provide would be beneficial to earn more money and stay relevant.
However, that mindset unveils several more questions. For example, when is the best season to renovate a rental home, and what upgrades have the highest ROI? Is it wise to switch to metal roofing or get a patio? How do you get the most out of your negotiations with contractors? Stick around till the end of this article to find an answer to these pressing questions.
When is the Best Season to Renovate a Rental Home
There are a lot of opinions about the best time to renovate a rental home. Each season has its peculiarities and, with it, its unique advantages. Thus, it might be hard to pinpoint which works best for you. Spring and summer are popular seasons because they have great weather, but items and services are more expensive due to higher demand. On the other hand, prices are often lower during winter because fewer people are renovating. However, the weather can be a challenge depending on where you live.
Thus, many decorators usually advise people to make changes in the fall. It’s the perfect time to complete outdoor projects, especially early in the season. Contractors can also take more time with your project because there’s less on their plate. Besides, if you plan early enough, prices within that period are fair. You can even hire a rental management service to maximize renovation ROI.
3 Tips for Negotiating with Remodeling Contractors
1. Talk to Multiple Contractors
Getting a quote from multiple contractors gives you the upper hand at the negotiation table, especially if you’re planning a major renovation. Ask about the material prices, service costs, and if they have any hidden fees. Communicating with different people gives you a better idea of average costs and can help you beat down prices with the contractor of your choice.
2. Start Discussions with a Budget in Mind
You should lead with that if you plan to renovate on a budget. Then, after you’ve found the right contractor, ask them what they can accomplish with your budget. Planning with a range in mind can prevent you from overspending or running out of money mid-project.
3. Ask about Trimming Costs
Even after discussing your budget, be sure to ask if there are ways to save money explicitly. Contractors might not always be forthcoming about the most economical ways to complete a project unless you inquire. Ask for cheaper alternatives, price different materials, and devise creative ways to cut your price tag.
Top 3 Rental Renovations with the Best ROI
1. Update Your Kitchen
The kitchen is one of the most accessible places to rack up ROI. There are many ways you can update your kitchen by making it more aesthetic or functional. If you’re hung up on the former, you should consider replacing the cabinetry hardware or lighting up your kitchen. Valuable upgrades include buying new appliances, changing the countertops, or opting for a backsplash.
2. Refresh the Paint
A fresh coat of paint is a quick and easy way to transform your home. However, if you want more bang for your buck, consider repainting your house’s interior. For a rental, interior decorators usually recommend sticking with neutrals with a broader general appeal. Also, while you have a contractor on the line, ask about the cost of repainting the exterior. This update can improve your curb appeal and get you more prospective tenants.
3. Upgrade Your Bathroom
Finally, upgrade your bathroom to maximize funds and attract more tenants. The bathroom is another room that can win you, prospective renters, even with a minor remodel. Brighter lighting can illuminate the room, making it look better. If you combine that with new vanity, tenants will get excited at all the Instagram-worthy photos they can take. If you have a more limber budget, you can update the amenities like toilets and showers for a complete overhaul.
The bottom line is good investors invest in their property, which means making time for renovations. While you can start a project at any time of the year, fall is often the best season. You can take advantage of less busy contractors, cheaper materials, and great weather.
Of course, if you want to keep your renovation within your budget, you should consider talking with multiple contractors. When you find the right one, keep your budget in mind, and ask about cost-saving techniques. Then, for the best ROI, consider repainting the house or upgrading the kitchen and bathroom.
Keeping up with a renovation can be tedious, so don’t be shy to hire help. A property management company can help you find and negotiate with the best contractors in town and oversee the entire project.