The rehab comes down to what is needed to make it marketable in the area. Then most importantly make sure the house is safe. Most of the time if it works and looks nice that is good enough for the tenant. Truth is, if it is okay with the tenant then it is good for the landlord. Functional and safety first in most situations and this is no different.
Rent-Ready Definition
For the unit or rental to be “rent ready” simply implies it is ready for a tenant to move in at that very second. The rental is spotless from mopped floors to dusted all over and polished countertops. Everything is in working order and will be working like new for a long time. If appliances need to be an extra effort for the doors to close or for them to be operational then it is probably best to get them replaced. Below is a to-do list for making sure your rental is ready for the tenant on move-in day!
Preparing a House For a Rental
Since this is your home and will be a shared space in some capacity, it is important to keep the common areas as clean as possible with no debris or unneeded objects. There are countless steps to keep in mind and you could go crazy on every small detail with making sure everything is picture-perfect. However, it is not needed to fix every small dent in the molding or make sure every cabinet door closes slowly or pick up every small piece of dust. Just the very important tasks are needed to ensure tenant satisfaction and safety.
Rent Ready Punch List
These ideas make a world of a difference and most can be done without a contractor:
1. Replace All Locks Or Keys
Tenant’s security keeps them honest and happy. It is essential to replace the keys on the property when tenants turnover to the new one. Smart locks are an easy way to switch locks on rentals especially with an annual turnover of units. There are many different types of smart locks to make tenant turnover a breeze. Depending on if your house hack is an Airbnb/ short-term rental or long-term rental might support your decision as to what type of smart lock you get. If it is a short-term rental for vacation goers then you will probably like the ease of changing the padlock codes with your phone and get notified when the new renters arrive. On the other hand, if you are doing long-term rentals like most probably are having a simple Kwikset Smartkey door lock since you can change it to a new key in seconds when the tenant leaves and a new one moves in.
2. All Is Clean
Especially when showing the unit it is important to have the place smell clean (or at least not bad) and as spotless as possible. If there is even leftover hair in the bathroom or spots of dirt laying around it could be a deal-breaker for the prospective tenant or a short-term renter just staying for a weekend. A big culprit of cleanliness is the floors. A good carpet steam cleaning goes a long way or getting new carpet entirely. In some situations, it is worth the money of paying a professional house cleaner to come and clean the apartment before the tenant arrives and after they sign the lease.
3. Painting
A fresh coat of paint can make a world of a difference in a house to freshen up the appeal of it as soon as you walk in. When choosing the best paint color it is important to think about what paint colors give positive psychological happiness, make the room feel bigger, what the market is doing, and what would be most common with future renters color scheme of the house. When having the thought process of scaling your business you’d want to keep the color the same so you always have it on hand to go in spackle then cover the spackle real quick. Most commonly you might notice is an antique white or an off shade of white for wall colors.
3. All Is Functional and Working
As touched upon, tenant satisfaction is key for keeping them long-term and keeping your rental profitable without vacancy. One way to do this is to make sure all appliances, doors, windows, utilities, etc. are working properly and not going to break down anytime in the near future. When the unit is vacant and waiting for the next one to move in it is a good idea to snake the drains (kitchen sink, bathroom sink, bathtub/shower, etc.), the showerhead still has good water pressure, make sure all the draws and doors are working properly and all else is working for years to come (dishwasher, washer dryer, etc.).
4. Should The Second Floor Have Carpet Or Not?
It is recommended when a unit is on top of another unit that the second floor or floors above the 1st floor get carpet since it helps with sound proofing and foot steps to prevent the residents hearing people above them. There are situations and some renovations that can be done where carpet wouldn’t make a difference with the insulation between the floors. From a budgetary mindset hardwood floors or luxury vinyl plank (LVP) saves money in the long term since it is less maintenance to clean and you do not have to replace it as often as carpet.
5. Energy Efficiency
From a budgetary standpoint if you are covering the utilities for the tenant then you will want all the lights in the house and appliances to be energy efficient, which could include making all lights in the house LED, energy efficient washing machine and refrigerator etc. It might seem small savings in the short term to spend $30 – $100 to replace all of the lights in the house to just save a couple a month. However the $3 – $5 a month could save you $360 – $500 over a 10 year time frame with just the lights alone. Appliances depending on how outdated they are you might want to save on dishing out a couple thousand to replace them.
6. Durable Long Lasting Flooring With LVP (luxury vinyl plank)
If needing to redo the flooring, LVP (luxury vinyl plank) flooring is a great alternative to hardwood floors due to the low cost and durability from scratches. Also, the vinyl plank flooring is water-resistant. Therefore, it is more long-lasting and overall less wear and tear. Sometimes it might make most budgetary sense to simply just sand the existing hardwood floors and do a quick polish. Furthermore, if taking out all the hardwood floors on the second floor or above another unit keep in mind insulation and soundproofing materials that could be placed underneath the new flooring / LVP.
7. Replacing Ceiling Fans
If there is a ceiling fan broken, just outdated, or just don’t need the ceiling fan since the rental has central air conditioning then take the fan out and install a ceiling light. Adding more light in a room makes the rental look bigger and helps the tenant out more to see. Additionally, keeping an unneeded fan will only cause more maintenance.
8. Bathroom Renovation
If a bathroom renovation is needed, keep it simple by painting over cabinets for a “new look” , re-glaze the bathtub and tiles to make it look clean, and use epoxy paint on top of counter tops. The purpose of this is to spend as little money and make the bathroom look new. Everything is functional and working great so why replace it? The idea here is to just give it a “refresh” look while saving a couple thousand dollars.
9. Smoke Detectors and Carbon Monoxide Detectors
Be sure that all smoke detectors are not outdated in the house. Smoke detectors have a specific lifespan, which is typically 10 years old. In most modern houses built around 1989 and sooner they are all hardwired interconnected to each other therefore you would not have to worry about them. In older houses they are all battery operated and probably most of the houses you will have are this way. You can check the smoke alarm date by taking it off and looking at the label.
10. Kitchen Renovation
Similar work to the bathroom renovation, the kitchen renovation can be similar work too such as repainting cabinets and resurfacing countertops with epoxy paint.
In Conclusion
Getting a rental prepared for the tenant does not have to be a headache and burn a hole in your pocket. There are safety measures to keep in mind and budgetary expenditures to do for ensuring you do not lose a tenant or lose all your money if you do not need to spend it. Renovations should always consider how you can spend the least possible amount and get the most return over the long-term. Real estate investing is a long term game and you should always have a long term mindset with the expenditures.
