As a landlord, you do not need to completely renovate your kitchen to attract quality tenants. Typically, full kitchen renovations are costly ($40,000-$80,000) and leave your property vacant for many weeks, as well as subject it to the wear and tear of your tenant.
Cosmetic upgrades that strategically update your kitchen will give you approximately 70-80 percent of the visual appeal at a much lower cost.
By using the “rule of 80/20” (where 20 percent of the work gives you 80 percent of the value), you will be able to efficiently upgrade your kitchen space without breaking the bank.
Why Full Renovations Don’t Make Sense
When it comes to a full kitchen teardown on a rental property, there is usually too much money involved to justify the interruption, especially to renters. That’s because of these reasons:
The High Cost of Gut Renovations
Kitchens with all-new fixtures and appliances cost anywhere from $40,000 to $80,000. With average rents increasing at most 2% to 4%, a custom cabinet or finish does not have the ability to earn back the luxury dollars spent, unlike a paint job and new flooring, which provide a nearly identical look for less than $5000. This is an easy calculation.
Costly Downtime and Vacancy Loss
When you do a gut renovation (6 – 12 weeks), during that time your rental sits empty, earning no income; you pay the mortgage, taxes, and utilities on it. In many cases, this equates to several thousand dollars in lost potential earnings. Cosmetic renovations typically may be done on the weekend when you turn the unit over to another tenant.
Tenant Wear and Tear
Tenants view a rental property entirely different than an owner-occupied property. Luxury items such as expensive quartz countertops and soft-close drawers are going to fail regardless of how well they were installed. After a couple of leases, a premium item will show its age much like any other finish item. It makes sense to install long-lasting finishes (not so stylish) but ones that can withstand wear and tear from a large number of tenants.
Choosing Practicality Over Perfection
The goal is always something you can rent out quickly. It has to be both practical and visually pleasing. Since you cannot have it all when renting an apartment or house, consider what is most important.
Apply the 80/20 Rule to Kitchen Updates
The 80/20 rule indicates that about 20% of the work done yields 80% of the visual appeal. Therefore, paint, updated cabinet hardware, and new lighting are within this high-appeal minority. On the other hand, replacing cabinets completely uses up your money and your time with low additional value. Focus on updates that will get noticed by potential renters (prospective tenants) as you show them your rental property.
Always Put Maintenance First Before Cosmetics
No matter how many coats you put on the walls, no matter how much new trim you add, a tenant will be very unhappy with a kitchen where the sink drips constantly (or doesn’t shut off), or has an oven that won’t light.
The best way to avoid these kinds of complaints is to inspect all of the plumbing, wiring, and major appliances in the home before painting.
When everything works properly, tenants are less likely to question whether they made a good decision when moving into your property. In fact, working with a Carroll County MD rental manager can help landlords identify which cosmetic changes can help justify the increase in monthly rent.
Bonus: High-Impact, Low-Cost Upgrades That Deliver Immediate ROI
The most impactful kitchen remodels don’t have to be expensive. Here are 5 of the best ways to get the greatest bang for your buck. All of these can be done in one weekend.
- Paint the Cabinets: Using the best colors to transform your kitchen is a move in the right direction. Paint the cabinets a neutral color (such as “greige” or “soft white”) to create a brighter feel in your home. Use a semi-gloss or satin finish on a good-quality cabinet paint. Semi-gloss is very easy to clean but may show brush strokes. Satin gives a nice sheen but still cleans easily.
- Change Out the Handles: Update your out-of-date hardware by replacing the old brass knobs with some sleek matte black or brushed nickel pulls. This simple update is fast and can be done in less than an hour. When installing your new handles, make sure to keep the same pattern as before so you do not have to re-drill holes.
- Update Your Lighting Fixtures: Builder-grade fixtures just scream rental property. Add some curb appeal to your kitchen with a low-cost pendant light above the sink, or replace it with a semi-flush light. Either way, you’re going to give your tenants a great first impression when they walk into your kitchen.
- Add Peel-and-Stick Backsplash: Adhesive backsplash tiles now resemble real subway tile, tin ceilings, and even natural stone. No grouting required. Simply peel off the backing and stick to your drywall or old tile. Tenants will think this is custom-installed and be willing to pay more for their rent.
- Replace the Faucet: A creaking, dripping faucet is a big turn-off at viewings. For under $150, you can install a modern pull-down or high arc faucet in a stain-resistant finish and send a message to potential renters that you take care of this property.
Focusing on inexpensive kitchen updates without renovation can change the room’s aesthetic in a single weekend. It saves money, keeps tenants happy, and raises your reputation as a competent landlord.
Conclusion
You do not have to invest in a full gut renovation to make your rental property’s kitchen feel updated and new. The key here is to use the 80/20 rule with inexpensive, long-lasting design options, such as paint, hardware, and light fixtures, so you can create an attractive environment for renters quickly.
These easy-to-implement ideas will improve the overall look of your rental kitchen while also justifying increases in rent. And, they require minimal time out of service during the update process. Before doing anything else, you should always take care of necessary maintenance. A quick weekend touch-up can be all you need to create a beautiful and functional kitchen.