Let’s talk about renovations. And before you start to get nervous about the recommendations we might make for extensive rehabs and additions - don’t worry. We’re not talking about tearing it all down and starting from scratch. We’re focusing on cost-effective renovations that are going to boost your rental property value. 

We know that certain renovations bring in better return on investment (ROI) than others, and that’s where we’re steering our investors these days. You want to earn as much as possible on your property. That means it has to be competitive in the market. It has to stand out from all the other rental properties that tenants can choose from. 

If you're a real estate investor or property owner in Santa Cruz, understanding which renovations will yield the highest rents is crucial. 

Let's explore some of the best rental property renovations to increase the value and appeal of your property.

Modernize the Kitchen in Your Santa Cruz Rental

Real estate agents will tell you that the kitchen is often the heart of the home, and as property management experts, we can tell you that’s true. Your potential tenants frequently prioritize updated, functional spaces when it comes to kitchens. This is where people start their days. It’s where they gather. It’s where they cook and eat. Everyone wants a well-equipped and attractive kitchen. If the kitchen in your rental property isn’t looking too amazing, you’ll want to begin your renovations here. We recommend that you consider:

• Energy-Efficient Appliances. Investing in new, energy-efficient appliances not only attracts eco-conscious tenants but can also lower utility costs. No one wants to attend a showing only to see old, outdated dishwashers and leaking refrigerators. Make sure the appliances match. Stainless is lovely, but it’s also expensive. You don’t have to go that route; as long as all the appliances have the same look, you’re offering an attractive and equipped rental home.

• Stylish Countertops. Old and worn counters will not make a good impression. Upgrade those counters and attract attention. Materials like quartz or granite offer durability and a high-end look that appeals to renters.

• Updated Cabinets. Freshly painted or refaced cabinets with modern hardware can dramatically transform the kitchen's appearance without breaking the bank.

Make sure the kitchen includes great lighting and plenty of storage space for pantry items, pots, pans, and cutlery.

Refresh the Bathroom

Bathrooms are another focal point for renters, and even though bathroom spaces are typically small, you can still make some updates that make these spaces look welcoming and inviting. Simple updates can make a big difference. Consider new fixtures, for example. Replace outdated faucets, showerheads, and light fixtures with modern alternatives. You can also give the tile and grout a refresh. Clean or replace grout and consider neutral, contemporary tile for a fresh look. 

How does the vanity area look in your bathrooms? A new mirror can breathe new life into a bathroom, and an updated vanity with ample storage space can enhance both style and functionality. Tenants will notice these things.

Enhance Curb Appeal

Let’s talk about curb appeal and how important it is for making a good first impression. First impressions matter, and the exterior of your property sets the tone. You want an outdoor space that’s attractive but not particularly high maintenance. Consider these enhancements:

• Landscaping. Invest in low-maintenance landscaping with native plants to boost curb appeal year-round. The idea is not to require too much water or fussing. Tenants will want the exterior of their rental home to look good, but they won’t want to spend a lot of time watering and weeding.

• Exterior Paint. A fresh coat of paint can make your property stand out and appear well-maintained. If the paint is still in excellent shape, consider a basic power wash. This will brighten up the exterior without requiring a paint job.

• New Front Door. A stylish, secure entryway can add both aesthetic appeal and safety. 

Make sure the lighting at the front of the property is ample. If there’s a long walk from the parking spot to the home, you’ll want good lighting there, too. Trim back any bushes or shrubs that impede a tenant’s view out of windows and doors.

Flooring Updates

Floors endure a lot of wear and tear, so consider durable, attractive options that will attract tenants and increase rents. We know that carpet has long been a staple of rental homes but lately, tenants have been looking for hard surface floors like hardwood or laminate. These materials are not only stylish but also easy to clean and maintain. Tile and vinyl can also serve you well in wet areas such as kitchens and bathrooms. These floor types resist water damage and look great.

Energy Efficiency Improvements

Today's tenants are increasingly aware of energy costs, so make efficiency a selling point. The more eco-friendly and sustainable your property, the higher your rents can go. Consider:

• Insulation. Improve insulation in walls, attics, and basements to enhance comfort and reduce heating/cooling costs.

• Windows. Consider double-glazed windows to minimize energy loss and noise pollution.

• LED Lighting. Replace traditional bulbs with LED options for long-term savings.

We’ve already talked about the importance of energy-efficient appliances. You might also want to incorporate some smart home technology features to help with energy efficiency and sustainability. Incorporating technology into your property can attract tech-savvy renters and those concerned with waste. Smart thermostats allow tenants to control heating and cooling remotely. Keyless entry systems enhance security and convenience. And, smart lighting offers customizable options that can be controlled via smartphone.