As a landlord or real estate investor, renovating a rental or investment property can be a lucrative investment that pays off in the long run. However, it’s important to consider the cost of the renovations in relation to the potential return on investment. To get the most bang for your buck, it’s important to focus on renovations that will attract and retain tenants and increase the value of your property. Here are the top 5 money-making renovations for a rental or investment property in the Sacramento, CA region, along with their average price ranges:
1. Kitchen Upgrades
The average cost of a kitchen upgrade in the Sacramento, CA region ranges from $10,000 to $25,000. This can include upgrading to energy-efficient appliances, adding a backsplash, or installing new countertops to give your kitchen a modern and updated look. This can help to attract higher-quality tenants and increase the rental income of your property.
2. Bathroom Renovations
The average cost of a bathroom renovation in the Sacramento, CA region ranges from $20,000 to $35,000. This can include upgrading the fixtures, adding new tile, or installing a new vanity to give your bathroom a fresh and modern look. This can help to attract tenants and increase the value of your property.
3. Flooring Upgrades
The average cost of a flooring upgrade in the Sacramento, CA region ranges from $3,000 to $18,000. Consider replacing old carpet with hardwood or laminate flooring, or installing new tile in the kitchen or bathroom. This can help to attract higher-quality tenants and increase the rental income of your property.
4. Outdoor Living Spaces
The average cost of creating an outdoor living space in the Sacramento, CA region ranges from $10,000 to $25,000. Consider adding outdoor seating, a grill, or a fire pit to create a functional and inviting outdoor space that tenants will love. This can help to attract tenants and increase the value of your property.
5. Energy-Efficient Upgrades
The average cost of energy-efficient upgrades in the Sacramento, CA region ranges from $5,000 to $25,000. This can include new windows, insulation, or HVAC systems, which can help to reduce energy costs and increase the value of your rental or investment property. Tenants are often willing to pay more for properties that are energy-efficient, as it can help to reduce their monthly utility bills.
Renovating a rental or investment property can be a lucrative investment that pays off in the long run. By focusing on kitchen upgrades, bathroom renovations, flooring upgrades, outdoor living spaces, and energy-efficient upgrades, you can make smart investments that will attract and retain tenants and increase the value of your property in the Sacramento, CA region. As a savvy landlord or real estate investor, it’s important to have the information needed to make better decisions that will pay off in the long run, and to consider the average cost of these renovations in relation to the potential return on investment.
