Investment property ownership is currently experiencing unprecedented success as more investors see rentals as viable investment vehicles. Successful owners of rental investments may make substantial returns on their investments (ROI).
Investors need to make smart choices with their properties, including purchasing quality properties. Knowing when and how to renovate and being aware of when renovation costs might become excessive, plus how best to plan them out. Renovations can increase rental income while simultaneously drawing in new guests. But renovations can quickly become expensive without proper planning and execution.
To maximize ROI while controlling expenses, we’ve put together this list of 10 cost-efficient renovation strategies for short-term rentals.
10 Tips to Renovate a Short-Term Rental Property at a Low Cost
Here are the most effective tips to make your short-term rental property beautiful, attractive at low cost, and increased return on investment.
- Pay Attention to High-Impact Areas:
When renovating your short-term rental, pay particular attention to areas with the greatest effect on guests. Guests prioritize kitchen and bathroom remodels first when visiting, so devote most of your budget to these spaces. Changing countertops, cabinets, and fixtures is an effective way of updating these spaces without breaking your budget.
- Go with Neutral and Timeless Designs:
It may be tempting to follow the latest design trends, but ensuring longevity for guests visiting is equally important. Using neutral colors with classic fixtures for timeless renovations that will stay updated quickly is the key to rapidly saving time and money on redoing renovations.
- Choose Cost-Effective Materials:
Renovations don’t need to be extravagant to be effective; look for materials with both durability and aesthetic appeal. Consider visual appeal at a reduced cost, such as laminate flooring that mimics hardwood for less. Furthermore, using high-grade vinyl or tile in bathrooms can create an upscale aesthetic without incurring too heavy of an expenditure bill.
- Seek Professional Advice:
Renovating short-term rental investments requires careful consideration. And execution, so if you need guidance or expert guidance when renovating them, it would be prudent to consult industry professionals. Such as interior designers or real estate agents who specialize in short-term rentals, as they will have valuable insights that could maximize return.
- Don’t Overlook Paint:
Painting can be one of the easiest and least expensive ways to transform any room, instantly brightening it and adding an inviting atmosphere. Lighter hues work better, making the room seem larger while reducing labor costs. Many DIYers can take this task on themselves, saving time and money in the process!
- Maximize Storage Space:
Your guests appreciate an uncluttered and well-kept environment. So, take full advantage of available space by including smart storage solutions on built-in shelves. And hidden cabinets or multifunctional furniture that maximizes space without taking up floor space. This enhances their experience, helps your rental property remain tidy, and gives them ideas on how to buy a rental property.
- Upgrade Lighting Fixtures:
Lighting is integral to creating the ideal atmosphere in any short-term rental property. Replace outdated and energy-inefficient fixtures with more modern ones to provide adequate illumination. Moreover, consider installing dimmers so guests can customize the light according to their preferences. And well-lit rooms not only add visual appeal, but they can contribute positively towards creating an excellent guest experience as well!
- Increase Curb Appeal to Buy Rental Property:
First impressions count and guests see your rental property’s exterior first. A well-kept exterior can draw in new guests and command higher rental rates. And simple improvements such as fresh paint, landscape care, and welcoming entryways can boost curb appeal without breaking the bank.
- Don’t Forget Technology:
Technology plays an essential role in providing guests with an unforgettable stay. Consider investing in smart home devices like keyless entry systems and programmable thermostats. High-speed internet increases guest convenience and distinguishes your property from its competition.
- Analyze Your Local Market:
Before undertaking renovations, conduct extensive market research on your target guests’ needs. And preferences, and adapt your renovations accordingly. For instance, investing in outdoor amenities like patios or barbecue areas in beach towns could significantly boost their appeal and increase short-term rental investment appeal.
Top Three Reasons to Remodel Rental Properties
- Increase Energy Efficiency:
Installing energy-saving devices such as induction cooktops will result in lower electricity bills for tenants and an attractive selling feature if the property is sold in the future. Incorporating energy-saving features can make your property more appealing to potential purchasers if you decide to sell it.
- Increase Property Value:
Carefully planned renovations can add value to your property, attracting a higher rental yield or fetching greater returns when selling it off. Target market-specific renovations might make your home more appealing to renters or purchasers.
- Increase Renter Satisfaction:
Provide renters with high-quality appliances such as dishwashers to increase satisfaction while decreasing repairs during their tenancies. In turn, fewer fixes are necessary on your end throughout this tenancy term.
Planning a Rental Renovation Renovating rental properties requires different considerations than renovating homes for families living there. Planning such an upgrade or remodel involves investing money strategically to get the most return.
Adding value to your rental yield increases, you can resell at a better profit. But, materials and renovation areas differ considerably when renovating an investment property compared to renovating a house; you must understand this so you do not over-invest.
Bottom Line:
Cost-effective renovations can enormously impact the ROI of short-term rental properties by targeting high-impact areas with timeless designs that use cost-effective materials like storage.
And lighting enhancements and using curb appeal elements like curb appeal, technology integration, professional advice from industry professionals, and consideration of local markets can create appealing spaces without breaking the bank.
Incorporating technologies that meet guest preferences as part of these renovations will bring excellent returns from investments over time. The above tips will help you find new ways to make your property more beautiful and attractive.