Is renovating my rental worth it?

Reduces your unit’s maintenance costs:

A freshly renovated unit will have much fewer maintenance needs since most things will be new. The cost of renovating is around 20% less because it is efficiently done all at the same time. No more multiple expensive one-off maintenance trips. This also potentially adds value to your property. A general rule of thumb for multifamily is for every $100 per month you are able to reduce your operating expenses, your property value increases by about $20K.  

Increases property value (and rent)

A general rule of thumb for multifamily is for every $100 you are able to increase your rent per month, your property value increases by about $15K! So, investing $30K to fully renovate a unit would likely allow you to increase your monthly rent by at least $200. Thus, likely increasing your property value by at least $30K plus you still get likely hood of reduces expenses and the increased rental income! 

Attracts and retains quality tenants

Quality tenants are more likely to pay rent on time and take care of your rental. Tenants also tend to stay longer in newly renovated units. Maintenance issues are the #1 reason tenants give notice and a newly and properly renovated unit should drastically reduce maintenance issues.

*To find out more about First Rate’s Renovation Services, please contact jim@frpmrentals.com