There are many good reasons to renovate your Maryland rental property. You’ll increase your rental value, your property value, and you’ll attract and retain high-quality tenants.
The trick is not overspending and making sure that the renovations you complete are likely to deliver the ROI you expect. The best renovations are cost-effective upgrades and updates that help you earn more in rent and retain tenants for longer.
If you don’t already have relationships in place with contractors, vendors, and service providers, this remodeling project could take longer and cost more than you imagine. You can renovate with confidence, however, by partnering with a team like ours at Maryland Property Management. We’ve walked homeowners and real estate investors through a lot of remodeling projects, and we understand the myriad of details that are involved.
Here’s what we recommend and what we have to offer when it’s time to renovate your rental property.
Establish Expectations and Budget
Before you begin renovating and remodeling, make sure you understand the scope of work you’re willing to undertake and the budget you’re willing to allocate. This isn’t a home that you occupy that’s getting an upgrade, it’s a home that you rent out to others. So, you don’t need all of the best finishes and the marble floors. Rental upgrades are best when they’re cost-effective, so get a good idea of what competing properties are offering in the market and how you want to compare.
Property managers can help you define the project and set the budget. In order to earn back the money you put into this remodel, you’ll want to calculate what it will mean in terms of rental value and tenant selection. Your ROI should ultimately drive all budgeting decisions.
When your team at Maryland Property Management is managing the remodel for you, we put the power of unit economics to work for you. We have excellent relationships with local vendors and contractors. We give them enough business with all the properties that we manage that they’re willing to give us their best rates. There’s no need to collect bids and fight for space on a contractor’s busy calendar. We can get your work prioritized and we can promise the most affordable rates.
You’ll likely hear us recommend that you renovate and remodel everything you can while you’re doing the work already. If you have an entire portfolio of rental properties, it’s more cost-effective to do the work you can in as many of them as possible. This will keep your costs down. For example, buying 10 washing machines will cost a lot less per-appliance than buying just one. You can negotiate better rates when you’re buying in bulk. If you’re going to re-paint the exterior of one property, do all your properties. You’ll save on paint costs and labor.
Be Strategic in Choosing Maryland Rental Property Renovations
Where do you want to focus your rental property renovations?
Another benefit to renovating with the help of Maryland Property Management is that we’ll be able to tell you what kind of work makes the biggest difference in what you earn and how you position your property on the rental market.
Most tenants in our market care most about kitchens and bathrooms. This does not mean we will encourage you to completely gut your kitchen and start from scratch. But if you want to focus on kitchen upgrades, we can lead you through some renovations that might include new appliances, updated flooring, and better lighting. We can also focus on some smaller features like tile backsplash, painted cabinets, or new hardware on things like drawers.
In bathrooms, we might tell you that you need some new lights over the vanity or a more updated mirror. We can suggest remodeling the tub or the shower and recommend that the toilet be replaced. Any of our suggestions will be aligned with the market, the current tenant demands, and what you’re able to afford.
As you’re deciding where to focus your energy and your resources, we will keep you focused on what you’re hoping that these improvements will do for you. You’re looking for ways to increase the overall value of your property, bring up rental values, and attract well-qualified residents. You also want to retain the residents you have in place now. A new washer and dryer or some fresh paint can incentivize a lease renewal.
The specific improvements and upgrades you make depend on your investment goals and the current condition of your property. Working off those things, we’ll be able to execute a remodel that produces your desired outcomes.
In some cases, you may simply be trying to make your home more attractive to good tenants. If that’s the case, simply upgrading some appliances might help. If you’re trying to maintain the long-term value of your property and you want to focus on preventative maintenance, replacing a roof might be the best use of your renovation dollars.
Remodeling Services We Can Provide at Maryland Property Management
So you understand the basic things that you want to consider when you’re embarking on a renovation of your rental property.
What can we bring to the table as professional property managers?
We’re going to help you invest in remodeling projects that make sense. We also understand that you do not have the time or the expertise to handle these projects yourself. You also don’t have the relationships that we have.
This is where our skill set can be a valuable asset.
At Maryland Property Management, we are happy to discuss the remodeling services that a property company like ours can provide to rental property owners like you. These services can benefit you as an investor and ensure the entire renovation brings you higher values, more peace of mind, and a stress-free opportunity to offer a new and improved rental home to the market.
- Project Management
During a remodel, your property manager can handle all aspects and details that are involved in your remodeling project, from initial planning to final execution. This includes developing detailed project plans, hiring and supervising contractors, and obtaining necessary permits and approvals. By delegating these tasks to a property manager, you can free up your time for the other important needs of your business, such as finding new rental properties or looking for ways to diversify your portfolio.
- Budgeting & Cost Control
Another benefit of allowing Maryland Property Management to oversee your remodeling projects is that you can leverage our ability to help you set and control budgets. Our experienced property managers can help you find cost-effective ways to achieve your goals without sacrificing quality. We can also help you monitor costs throughout the duration of your project to ensure that it stays within your budget.
- Established Vendor Relationships
We have spent years building and cultivating relationships with trusted vendors and contractors that can help you save time and money on your remodeling projects. Our professional service providers are committed to us and they’re willing to take on the projects that we need help with, whether they’re big or small. We will share these relationships with you, allowing us to negotiate better prices and deal with any issues that may arise during the project. This can save you both time and money while ensuring that your project is completed to your satisfaction.
- Understanding the Local Maryland Rental Market
A modern and up-to-date rental property can attract high-quality tenants and generate more income for you as an investor. As property managers, we can help you identify the most marketable updates to make to your property to maximize its appeal to potential renters. This includes updating fixtures and finishes, adding modern amenities, and improving traffic flow and functionality. As we discussed previously, your investment goals will drive what types of renovations we make. We’ll bring our data and our deep market knowledge to the table while these decisions are being made.
- Responsive and Proactive Maintenance
Finally, as your trusted property management partner, we can help you identify and address maintenance issues before they become major problems. By scheduling routine inspections and maintenance projects, we can keep your rental properties in top condition, which can reduce the likelihood of expensive repairs down the road. A property manager can also handle any emergency maintenance requests that may arise, allowing you to rest easy knowing your properties are being taken care of.
Making renovations and managing remodeling projects will alert us to any potential maintenance issues, allowing us to get ahead of the problem as quickly as possible.
Investing in remodeling projects can be a great way to improve your rental properties and attract higher-quality tenants. Always work with a property manager, and if you don’t already have one in mind, consider our team. From project management to vendor relationships to marketability, we can provide the expertise and resources you need to ensure your project is a success. So if you’re looking to take your rental properties to the next level, contact us at Maryland Property Management.
