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Which Home Improvements Will Give the Biggest Return?

Biggest ReturnReturn on investment or ROI is on the mind of every residential property owner and investor.  Choose which of the following groups would give you the biggest return in a residential rental property?

GROUP A                                                                                             GROUP B

Deep cleaning of the home                                                         Basic cleaning, including carpets

Neutral paint                                                                                     Accent color paint in most rooms

Pre-fab countertop replacement                                              Granite countertops

New cabinet hardware                                                                  New cabinets

Updated lighting                                                                              New window treatments

White appliances                                                                             Stainless steel appliances

Ceiling fans                                                                                         Built-in microwave



The answer is A.  The enhancements listed in GROUP A will help get your rental home leased faster to a quality tenant, without breaking the bank.  A thoroughly cleaned home shows better to prospective tenants than a broom swept one, and actually encourages good housekeeping.  With paint, white ceilings and neutral colors can open the room, while “trendy colors” may make the room feel smaller (and may not be the style next year). Like paint, a low cost, easy to install countertop can change the whole look and feel of the room, rather than spending thousands on granite which appeals differently to different people. Good lighting, ceiling fans and solid appliances add to the comfort of living in the home.

Another enhancement to consider is hardwood or laminate flooring instead of carpet for durability and nicer appearance.  And don’t forget the “curb appeal” of your home. Most renters drive by the home first, so make sure your home gives a good first impression. Making these types of investments will keep your properties in great working condition and appeal to new renters while also keeping current renters satisfied.

TELL US! What home improvements have worked well for your investment property?

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