Q & A: What Makes a Good Upgrade in a Rental Property?

We often get questions about rental properties. Here's a recent question sent to us by a client who currently lives in the property they plan to keep as a rental in the future:

Question: "I have planned to make some updates in our home. We did look at new homes that had updates like granite or granite tile counters and I am wondering if that would be a good upgrade to make if we plan to rent our home later?

I also am thinking of upgrading all of the facet fixtures in the kitchen and bathrooms and possibly changing out the plastic shower enclosure in the master bath with inexpensive tile. Are any of these worthwhile in your opinion? And would we get more rent with these upgrades?"


Answer: As for upgrades, there are a few items that will return to you more than others, but in different areas and for different reasons. If you plan to sell, then granite kitchen tiles, shower tile and new fixtures are a GREAT update to see a good return.

As for renting the home, while these items may make the place more attractive, they will not get you more rents. What they might do is allow you to rent it faster than, say, a plain-Jane place nearby.

The one thing I do caution anyone about is, if you plan to keep the home and rent it, then you have to consider the repair costs. If a granite tile breaks, it’s much more expensive to replace or repair than a ceramic tile or laminate surface.

So, depending on your timeline, let’s consider some goals:

• Do you plan to live in the home for at least 2 years before renting it out? If so, you may want to go ahead and do the upgrades for yourself, since it will be for you to enjoy as well.
• Do you plan to rent it out soon? Maybe in one year or less? Skip the fancy stuff, keep the upgrades simple…you will need to supply a fridge for the renter, and will want a "cushion fund" in case it takes some time to get the right person in. Plus, you'll have to pay for moving costs for yourself, so keep your money in your pocket for now.

Good for Rentals
One thing that is a good return, almost always, is a good quality, STRONG laminate flooring (for a rental, laminate over hardwoods since real wood tends to scratch more easily and is much more expensive). Laminate flooring is easy to keep clean (carpets can get THRASHED quickly in a rental) and easy to replace one board if needed. Plus, it appeals to a lot of people…so consider this type of upgrade before you think granite or other expensive, fancy finishes.

Have more questions for us regarding rental properties?
Please send your questions to: sherinebeltran@cbseal.com.