The Key Focus for Landlords When Renovating

When renovating, landlords should focus on meeting tenants’ needs rather than making high-end upgrades like they would for their own homes. Landlords should prioritize areas that enhance functionality, comfort, and overall appeal, as renters value practicality and livability over luxury finishes. Here are some areas to consider renovating:

1. The Kitchen

The kitchen is often the heart of the home, and it plays a critical role in attracting tenants. A functional, stylish kitchen can be a major selling point for potential renters. Best of all, landlords don’t need to invest in the highest-end appliances or materials to achieve a significant impact. Here are some key kitchen improvements that can enhance its appeal without overspending: 

• Countertops: Durable countertops are key for a lasting kitchen. Affordable options like quartz or laminate offer the same durability and modern look as granite for a fraction of the price.
• Cabinets: Instead of replacing cabinets, landlords can sand and repaint them, then update hardware with modern knobs and handles. This cost-effective upgrade can significantly improve the kitchen.
• Backsplashes: Adding or updating a backsplash can enhance the kitchen’s appearance. Practical materials like tile, glass, or stainless steel are both functional and stylish.
• Appliance Coordination: Coordinating finishes on appliances like the refrigerator, microwave, and oven creates a polished and modern look without needing top-tier products.

2. Bathrooms

The bathroom is another essential area of the home that greatly impacts tenant satisfaction. A spacious, well-organized bathroom can make a lasting impression on potential renters. Here are several bathroom renovations that can enhance its appeal:

• Space Maximization: Use pocket doors or replace a bulky bathtub with a walk-in shower to open up space in smaller bathrooms.
• Storage Solutions: Renters appreciate extra storage, so adding shelves, wall hooks, or cabinets for toiletries and towels is a practical upgrade.
• New Fixtures: Upgrading fixtures like faucets, shower heads, and cabinet hardware is another affordable way to enhance the bathroom’s appearance.
• Modern Toilets: Replacing old toilets with efficient models improves comfort and saves water, reducing utility costs and benefiting both tenants and landlords. 

3. Curb Appeal

A property with great curb appeal gives the impression that the landlord takes good care of the property, which can increase tenant trust and satisfaction. These simple updates can make a noticeable difference:

• Landscaping: Planting new grass or creating a well-maintained garden can quickly enhance the front yard’s appearance.
• Trimming and Pruning: Regularly trim shrubs and trees to maintain the property’s appearance and prevent overgrowth. Neglected landscaping can make a property seem unappealing to potential tenants.
• Fresh Paint: Repainting the property’s exterior can refresh its look and protect the building from weather damage, improving both aesthetics and durability.
• Decorative Touches: Simple additions like planters or a decorative walkway can boost curb appeal without requiring extensive renovations.

4. Property Amenities

Amenities are an important consideration for many renters when choosing a rental property. Here are some key amenities to focus on:

• Storage: Renters often seek extra storage space. Adding cabinets, shelves, or closet organizers can provide much-needed space, making the property more appealing.
• Air Conditioning and Heating: In areas with extreme temperatures, having a functional HVAC system is essential for tenant comfort and safety. Consider updating air conditioning or heating systems for maximum efficiency.
• Parking: Providing designated parking is a major selling point, especially in urban areas with limited parking.
• Washer and Dryer: Including a washer and dryer in the rental property adds convenience and eliminates the need for renters to visit a laundromat.
• Outdoor Space: Adding a balcony, terrace, or shared outdoor area gives tenants a place to relax and enjoy the outdoors, increasing the property’s value. 

The Benefits of Renovating Rental Properties

While renovations come with a cost, the benefits often outweigh the initial investment. Renovating a rental property can result in fewer vacancies, higher rental prices and property values, and improved tenant retention. Here are some additional benefits of renovating:

• Property Differentiation: An attractive, well-maintained property stands out in a competitive rental market, attracting more tenants.
• Energy Efficiency: Upgrading to energy-efficient appliances reduces utility costs, making the property more appealing to tenants who value savings on their energy bills.
• Increased Property Value: If landlords invest in the right property upgrades, they could increase their property value. This can result in a better return on investment should they choose to the sell property at a later date.
• Tenant Satisfaction: Renovations that enhance functionality and comfort improve tenant satisfaction, leading to fewer complaints and maintenance requests, and increasing lease renewals.

Bottom Line

Renovating a rental property is a smart investment. Strategic upgrades in key areas like the bathroom, kitchen, and curb appeal can attract quality tenants, reduce vacancies, and ensure steady rental income.

If you would like help managing your Ottawa rental properties work with our experts at Stewart Property Management. Our property managers can help with everything from property maintenance and lease management to tenant screening and rent collection. Contact us today to learn more!