Buying your first investment property can come with a wide range of emotions not unlike buying a home for your family. The best intentions for both your tenant as well as your portfolio are often considered.
If you are investing properly, you bought low with the hopes of seeing a good profit. At Pink Door Management, if you have any doubts about how much rent your property can garner, we offer a free rental analysis. Sometimes, when you buy low, there are renovations and repairs that need to be made. When you start knocking out walls, sometimes you can uncover issues that you were not expecting.
The goal is to offer a tenant a livable and affordable home for them and a problem free, profit provider for you. When you decide to renovate, make sure you are putting your dollars to the best possible use. Granite counters and soft-closed drawers are nice but they often don’t net you more rent, they just net you a higher bill. Keep in mind that unfortunately, most renters will not care for your home the way you would. You may think the home looks lovely and appreciate some of the finer things but some of your tenants simply are hunting for a roof over their heads without all the appreciation for the care of the finer things you may install. Save those things for your personal home.
Want more value from your rental renovations, here are the spaces Pink Door Management would recommend.
Make sure there are good locks on the doors. Safety is always paramount and making sure you have solid doors and good locks may seem like a small thing but often when you are in a “buy low” investment property, they are not always in the best parts of town. Helping your tenants feel safe can save you a ton of trouble.
How old is your HVAC system? If your system is really old, you may want to consider upgrading and be sure they upgrade the ductwork as well. In the Orlando area where Pink Door Management offers property management services, running the a/c is vital not only for comfort but also to help thwart mold. Mold likes warm, dry spaces and black mold can be a beast for remediation as well as health issues. Making sure to invest in the HVAC system will be dollars well worth it.
Is the wiring up to par? Many homes in the Orlando area are new enough to have great wiring, however, there are still some homes that have what is called knob and tube wiring. If you are buying a home that is quite old (tons of historic potential in Central Florida), you may want to double check this. These old homes have a lot of character but they also have what was standard when they were built. Those that owned the home before you may have decided not to upgrade but again, you want your tenants to be safe and making sure they aren’t moving into a potential fire hazard is a wonderful thing. Besides, who wants to buy a home that may burn down leaving you with no profits?
What do the kitchen and bath cabinets look like? A total kitchen or bath remodel is not necessary, you can often paint dark cabinets a lighter more inviting color. If you find that you want to add larger or newer cabinets, then Pink Door Management recommends getting them from a place like ReStore which is associated with Habitat for Humanity. They have lots of great finds that can help you renovate on a dime and you can also donate your old cabinets if they are in good shape to them to help someone else.
How dark is it? Nobody wants to live in a cave. Many of us thrive on lots of light if your rental home has dark colors or is closed off from a good source of natural light, paint goes a long way. You can brighten a space with a nice shade of new paint. Keep it neutral and natural but you can surely enhance a space for a small amount of money while maximizing your dollars.
Pink Door Management can help you to know not just the best ways to spend your dollars on renovations on your new Central Florida rental home but also help you find qualified tenants through awesome marketing and will handle everything for you for ease into the new role as Real Estate Investor. If you are looking to purchase your first home, Pink Door Management has a sister company, Scates Realty and Investments that can assist you in locating your first Orlando area rental property.
Learn how to budget your renovations with Hero Rewards. If you are a teacher, law enforcement, active-duty military, a Veteran, Medical professional or a firefighter, we have something special just for you! For even more info, be sure to visit www.ScatesForHeroes.com