Remodel Your Rental For Maximum ROI

Hey Yu,

My husband and I just bought our first rental property. It's a 4 door multi unit and it’s super cute!!

It’s in working shape and is mostly rented, but as the current leases expire we want to put some money into upgrading the unit interiors. We’re hoping to attract easy, long-term tenants. I’m thinking the ground floor would be good for seniors…and we might actually have my father in law move in soon.

Right now we’re disagreeing over what we should spend on each unit and what amenities matter most to renters. Since you work with other property management companies, I’m hoping you could point us in a general direction of what to prioritize.

Thanks!!

Jennifer

Godfrey, IL

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Hey Jennifer thanks for reaching out!

I own a few rentals and it's great to dig into these types of questions.

You’re asking a good one, too: No one wants to be that property owner who overspends on something renters don’t care about.

You’re looking to remodel your units to attract quality, long-term tenants who will keep your place clean and in good condition.

You also want to cover your own costs in maintaining the property’s exterior, having the funds for emergency repairs, as well as your monthly loan. If you overspend on remodeling? You risk being put in a bad financial position.

In this article, I’ll:

Break down the top things renters look at when choosing a new home
Give you 3 tips on the best updates you can make to your units to attract higher quality- and higher paying- renters
And give you some honest pricing on what you should expect to spend in the Alton and Godfrey Illinois area

Ready to dive in? Read on.

How Renters Pick Their New ‘Home’

Congratulations!

You and your spouse are now in the property business.

It might not feel like a business in the same way owning a car dealership or a restaurant would but the key to success is the same:

Know your customer.

The facts: There are things renters want that you can’t change about your property. (Think: school district, proximity to work, neighborhood walkability.)

But how your property functions and feels to your renter is in your control.

You want to attract long term renters, perhaps seniors for your ground floor units. That’s a great place to start. Think like them: What would you be looking for?

Would it be…

…open space to better navigate with mobility issues?

…materials that are easy to keep clean and maintain?

…something special to make the place feel less temporary?

Quality renters want to step into a fresh space that feels like home. The good news? I have a few ways you can make that happen and stay on budget.

Rental Refresh Tip #1: Paint It Right.

best paint color for rental — *SW Alabaster: One of our most requested rental colors.*

You already know paint does wonders for a rental. New paint:

covers use/damage
eliminates odor
and gives your rental a ‘blank canvas’ feel renters love

It’s also the least expensive, biggest impact thing you can do to refresh your rental.

Having a professional paint your rental will run between $350-500 per room (materials and labor included). Want to DIY your rental refresh? I’m all for saving money if you have the time, but make sure you do it right. We’ve all seen these memes…

Someday I’ll write an entire article on how to paint a room professionally. :)

For now, just make sure you

remove your covers/fixture covers,
cover your floor,
and make it easy on yourself by choosing the same color for your ceiling and walls.

Our most requested colors right now for rentals are:

SW Alabaster: a creamier white that bounces warmth and is excellent for spaces with plentiful natural light

SW Greek Villa: a warm white good for modernizing spaces, especially smaller rooms like bathrooms

SW Pure White: neither cool or warm, this white is the white of whites

And for those leaning into the grey trend:

SW Mindful Grey: Leaning into gr-eige? This mid to light grey has the right amount of warmth to steer it away from that institutional feel

SW Dorian Grey: Classic and neutral, it’s a color that works just as well in small halls as in large applications

Don’t Replace It- Paint It

You can also leverage paint to ease your budget on cabinets and tub/sinks/tile.

I recommend bringing in a professional for these projects, especially reglazing tubs. Painting high use and water contact spaces requires the right prep and materials to make it last.

To give you a rough estimate on how painting these fixtures can save you money, cabinets can be refreshed with paint professionally for between $35-50 per door. Compare that to purchasing cheap, preassembled stock cabinets at $100-400 a piece!

Plus, painting cabinets an accent color can be a great way to inexpensively leverage what we call the “focus piece” and command a higher rate for your rental (more on that to come).

Is Painting Your Rental A DIY or Pro Move?

This question can go either way.

In my experience? Couples who manage property rentals as a secondary income stream (think: you both have day jobs) seldom have the time and energy to paint a rental. Good set up, prepping, painting, edging, and clean up takes time. Weigh your own time against how long you have to allow a property to sit vacant.

If you’re in no rush? Queue up Led Zeppelin IV and have fun.

If you don’t want to give up your nights and weekends or are counting on occupancy for your portfolio’s cash flow, call us. Our crew is professional and fast. A full paint refresh can be done in days- including drywall repair. That means your empty unit can get back on the market ASAP.

Give us a call at 618-417-7130 or click here to book your free project estimate!

Rental Refresh Tip #2: The Focus Piece.

small but beautiful rental kitchen — *A tiny rental kitchen can feel like luxury with fresh paint and good accent lighting…*

Your biggest ROI on your rental remodel will come from two rooms: the kitchen and the bathroom.

These spaces are high-use and highly personal. Renters don’t have a lot of choice when it comes to fixtures in the kitchen/bathroom. They aren’t as easy to personalize…and yet they need to feel nice.

You’ve got a fresh coat of paint on both but what else should you do to make your rental stand out?

My top trick is investing in one ‘focus piece’ for your rental that appears in one of these high ROI rooms.

For the most part, you’ll be using low-to-mid grade materials throughout your rental. And that’s ok! Renters largely desire fresh over fancy. But successful property owners know that having something special goes a long way toward attracting the right renter.

A ‘focus piece’ is a fixture or element that falls in a luxury category. It draws attention to the quality of your rental and helps it stand out as your unit is compared to others.

A ‘focus piece’ can also serve to price anchor your unit. Remember: you’re running a business. Your unit is your product and renters have a choice.

If your unit is competitively priced and uses largely the same materials as everyone else’s, having a focus piece can:

Give you greater choice in applicants
Allow you to price your unit a little higher
Or allow you to command the same price as other units that may be in a better location/have an advantage over yours

Here’s a list of great ideas- just remember you only need one. Don’t spend $50k on a rental upgrade! You asked about the budget in your question, so I’d recommend spending between $400-700 for this category.

A Double Vanity: If you have the space, a double vanity is a great upgrade to a rental. Counter space in the bathroom is highly prized.

Signature Lighting: Pendant lights over a breakfast bar, track lighting in the kitchen, under cabinet lighting…great lighting is so uncommon in rentals, it’s a luxury that makes a rental feel more like a permanent home.

Large Kitchen Sink: Whether you go farmhouse style or invest in a large, double bowl sink with a solid garbage disposal, a beautiful sink is a stand-out visual and can subtly attract those low-key ‘homebody’ renters that want to settle in and stay for a few years.

Additional Storage: Historic homes in the Alton area often lack good storage- especially in the kitchen, bathroom, and living room. If you have an historic home with an usual layout, talk to us about creating built-in permanent shelving like this:

built in bookshelf to create more space in rental unit — *Built in bookshelf in a client’s home.*

Our expert carpenter Nate Musket would be thrilled to work with you to design something unique to your space.

Rental Refresh Tip #3: Life-Friendly Flooring

I had thought about naming this section “pet-friendly flooring” but then I knocked my coffee on the floor of my own office.

Accidents happen…and renters don’t always have the tools on hand to take care of your floors. One untrained puppy, aging cat, toddler, or clumsy cook can leave your unit anything but fresh. Renters want a place that not only smells clean but looks welcoming to barefeet.

LVP is the true champion when it comes to rental units. It’s fast to install, waterproof, and an inexpensive way to get that “wow” factor in your unit. Plus, it’s extremely durable.

A single flooring color used throughout the unit gives it a cohesive, high-end feel. More so, eliminating flooring transitions in your ground floor units increases your unit’s accessibility and safety for seniors.

LVP floors wear beautifully and have a great ROI on long-term rentals.

For bedrooms? Carpet is a cheaper alternative, but it’s a ‘one tenant’ material. Plan on replacing it when it's time for a new renter.

For A Great Rental- Think Fresh Not Fancy

Jennifer, congrats again on your first rental property. I hope this helps as you make the next steps in your new venture.

If you take away just one thing: remember to think fresh, not fancy. Many first time landlords make the mistake of overspending on elements they want in their own home, without considering what attracts the rental market as a whole.

As long as you create a fresh, safe, and clean space? I have no doubt you’ll be able to find the perfect tenant.

And if you need any help? Call us! Our crew would love to assist.

Thanks again-

Yu