No matter the property, it’s always a good investment to rehab.
To rehab or not to rehab? That is the question. But, to those who have rehabbed, the answer is clear: rehab, rehab, and rehab!
But Why Should I Rehab?
Every building ages with time, and so does the hardware. And, with any amount of time, the look and feel of the apartment based on fixtures, hardware, and colors go out-of-date. A discerning client may look at your space and think: Wow, this place was built in the 70s, wasn’t it?
Rehabbing provides your space much needed updates that catch the eye of potential tenants, not only expanding your demographics, but allowing your property to increase the rental rates for this new clientele.
Anything you can do to help create a condo look and feel in a property will help increase the rental asking price and attract a new demographic.
A New Rehab Targets New Demographics
To get a new demographic, you’ll need to present potential clients with something new. Whether your building was built in 1970 or 1901, a rehab provides the essential new look that will help sell a property. And, with new and more luxurious or modern facilities, you can attract a new demographic – young professionals who look for central city locations and luxury. This highly responsible demographic is willing to pay more per unit, respect facility rules, and pay up their accounts on time. Truly, they’re a property manager’s dream tenant.
A Return on Investment
There are many variables that impact rent and asking prices for rent, including: the age of the building, where it’s located, its tenant profile, and the surrounding competition.
If your properties don’t have good curb appeal, people will just drive by and keep looking for a property that more aligns with their vision of home.
Many owners report that replacing carpeting with vinyl, tile, or wood flooring promises the greatest return on their investment. Additionally, these are great flooring choices, as they are durable and easier to maintain.
Moreover, the best rooms to reinvent are the kitchen and the bathrooms. Realtor.com estimates an 85 percent ROI on kitchen and bath remodels. From new cabinets to fixtures, faucets, and surfaces, these two rooms garner a lot of attention from tenants.
And with new space targeting a new demographic, rental rates will increase putting money back in your pocket. On average, after a unit is rehabbed, a property can increase rental rates from 10 to 30 percent.