The San Diego housing market has grown to become a seller’s market, especially in the aftermath of the pandemic, with the number of buyers exceeding the number of properties available. Housing Providers (Landlords) across the city of Chula Vista are competing to gain good, long-term residents for their investment property and many of them are considering whether or not to renovate their rental.
On one hand, renovations can help you attract a better category of residents and earn better in the long run, while on the other, they can be a costly upfront investment for many. If you are planning to renovate your Chula Vista rental property, you need to ensure you’re renovating for the right reasons.
Here are some aspects to consider.
Assess the Condition of Your Rental Property
Before you make up your mind about remodeling the house, examine it thoroughly. This will help you narrow down the areas of focus and exclusively repair portions that are in dire need of an upgrade.
If your house is in a dilapidated condition, your prospective resident wouldn’t be pleased and hence, renovation becomes inevitable. Therefore, you need to make the property as appealing as you can, to attract potential residents, which includes fixing broken items, mending damage, and installing additional amenities that make your rental more tenant-friendly.
Calculate the ROI of Your Chula Vista Rental
In addition to examining the overall condition, you should consider how much money your rental generates. If you are already earning sufficient rental income with the existing property condition and the utilities, you may not need to renovate. Just consider making minor repairs here and there (i.e. paint and flooring). Before you choose your new rental rate make sure you are compliant with price gouging and other rental pricing laws.
However, if you think that revamping the place can help boost your ROI, go ahead. Renovation can help you boost the ROI by not only attracting more renters but also retaining them. If you upgrade your property with modern necessities such as a pre-installed Wi-Fi connection, soundproof windows, centralized air conditioning, and heating systems, you can charge more rent from your tenants. Besides, all these good-to-have amenities can also help raise the property value.
Evaluate if Your Property Has Been Vacant for Too Long
Figure out how long your house has been vacant and try to understand the reasons why it has stayed vacant for so long. Is it because renters are facing financial constraints these days or is it because they aren’t finding your rental good enough?
These days, rental properties are more susceptible to vacancies, as people have plenty of options to choose from. If your home is not well-maintained, you might end up losing tenants to other, more attractive-looking properties. To avoid this, you can consider making renovations and other additions to your property which will attract more tenants and reduce the vacancy rate.
These include simple upgrades to the kitchen, like adding good countertops and refurbishing the flooring. It can also involve making the outdoor area of the rental more attractive by landscaping and choosing an appropriate color for the exterior.
Additionally, to ramp up your rental value, you can also choose to add home appliances like washer-dryers, dishwashers, furniture and update your plumbing systems.
With such improvements, you can expect lower vacancy rates, fewer gaps between the tenants, longer leases, and a stable cash flow.
Evaluate Your Rental Renovation Budget
Before you head on to executing the renovation plans and ideas, you must check if you have enough finances for the house remodeling. Rental property renovations can be expensive. However, it is possible to adjust the plans according to your finances.
- If you have a low budget
If you have a tight budget, and cannot go for full-fledged recordation, you can consider performing maintenance and repairs. Even though these changes may not be glaringly obvious, they help provide a fully functional abode for your tenants. They include fixing plumbing systems and drainage, remodeling kitchen counters, repairing leakage issues, and flooring.
- If you have enough budget
If you have a considerably large budget, you can go ahead with large-scale renovation. Spend on providing amenities and home upgrades that can guarantee high returns in the long run. Structural modifications, décor improvements, energy-efficient home appliances, and landscaping are some of the potential areas of renovation.
Even though you can do all the planning for the renovation by yourself, it can be wise to hire a knowledgeable and experienced property manager who can help you assess whether or not you should undertake a full-fledged renovation or settle for smaller changes for the time being. It is also imperative that you comply with rental pricing laws.
A trusted and efficient property management company, such as Encore Realty, can help you navigate the renovation process with ease. Our experts can help you plan the repair and restoration with skilled and qualified contractors, make necessary recommendations and guide you through managing the finances for the purpose. For more assistance regarding your Chula Vista property, contact us at Encore Realty, Inc.