How to Budget for Your Rental Property Kitchen Remodel

commercial contractors

Making even relatively small changes to a kitchen design typically brings a return on investment (ROI) of 82.7% when it comes time to appraisals. If you’re a landlord considering a kitchen remodel on one of your rental properties, you may be wondering how much to spend on the project before you begin consulting commercial contractors. Here are some points we have discovered at DeWald LLC. to consider when making a budget for your remodel.

Keeping or Selling?

Before you start calling commercial contractors for kitchen remodeling, one major factor to consider is your holding period. Do you intend to keep the property long-term, or do you think you’ll put it on the market in the next one to two years? If you want the property to be purchased by an owner-occupant, you should plan to spend more on the kitchen renovation. Purchasers will want to see features such as granite countertops and high-quality wood cabinetry. But if you want to keep the property or sell to someone else who’ll rent it out, you should opt for long-lasting and inexpensive materials, such as vinyl planks for floors and counters made of laminate.

How Much Can You Charge to Rent or Sell the Property?

This is where ROI comes in. Look at comparable properties to determine how much more people are willing to pay as renters or owners for a property with a newly remodeled kitchen, as opposed to a kitchen that hasn’t been updated in a while. You may need the help of a realtor to make this determination, or you may just need to see how many units in the same building have sold or rented for.

One important point to keep in mind: If you’re going to keep the property after the kitchen remodel, take extra care in checking future tenants’ backgrounds. You want responsible people who aren’t likely to damage the kitchen and therefore won’t reduce your ROI.

How Much Are You Willing and Able to Spend?

Before you consult with commercial contractors, you’ll need to realistically assess how much you can afford to spend and where the money is coming from. If you’ve saved a good deal of cash for repairs on your rental property, as all landlords should, you may have enough to cover a kitchen remodel; just make sure there are sufficient funds left to cover emergencies.

But if you plan to cover the costs of the kitchen remodel with a loan, you need to calculate your ROI with the loan interest included. The interest will reduce your ROI.

Add 10% to Your Total Budget

You need a 10% padding to cover unforeseen expenses. It’s hard to know exactly what a kitchen remodel will cost until the commercial contractors start the work. You don’t want to find yourself with a renovation you can’t afford to finish.

What’s an Ideal ROI?

Here are some important points to ponder when deciding whether your kitchen remodel is worth the money you plan to put into it:

  • How much more can you charge for rent, and how long will the rent increase last? Usually, a kitchen remodel will increase value for up to 10 years, at which point it will no longer look as fresh and new.
  • How much will your equity value increase due to the remodel? The property’s value should increase by at least the same amount of the renovation.
  • Investing in new appliances and fixing electrical and plumbing problems mean fewer repair costs for several years after the remodel.
  • Rental properties with newly remodeled kitchens and higher rent typically appeal to more trustworthy tenants, who will save you money by taking better care of your property.
  • Your rental property will be vacant less often with a kitchen remodel, meaning you won’t lose money as the property sits empty.

What’s an Ideal Payback Timeline?

Some experts claim that the payback period should be two years, meaning that you make back the money you invested on the remodel within that time frame. Others feel that even a small increase in rent that pays you back for the remodel over a longer period is worthwhile.

Clearly, a kitchen remodel on a rental property is a major undertaking. Accurately calculating your ROI is key, and so is hiring the right contractor. Contact our team today for a free consultation.

Redoing Your Floors? Consider Wood or Tile to Bring Out the Best in Your Home

commercial contractor

If you’re thinking about redoing your floors, you have several options. Carpeting accounts for about 51% of flooring sold in the United States, with other materials such as wood and tile making up the other 49%. Catalina Research reports that sales of hardwood flooring increased by 2% in 2017, with a total of $3.49 billion in revenue. If you’ve always had carpeting and are thinking about a change, consider wood or tile flooring for your home. Flooring offers a finished feel and adds to the style and value of your home in a relatively small number of work hours. A commercial contractor can help you select the right kind of flooring for your home.

Hardwood Flooring

Hardwood flooring gives a classic, time-honored feel to any space. Cleaning it is a simple process, and scuffs can easily be repaired by sanding and refinishing. Hardwood floors provide better acoustics, and as a sought-after feature, they add value to your home. You can choose from a wide array of wood types and colors to match your personal preferences.

Ceramic Tile

Ceramic tile can be part of a bathroom or kitchen remodel since it can’t be damaged or stained by water. You can choose from a nearly endless selection of colors and shapes and have them arranged by your contractor in a pattern that suits your decor. Clean them quickly and easily with a mop. Ceramic tile is a greener option since it is the only type of flooring that doesn’t emit harmful compounds into the air.

Porcelain Tile

Porcelain tile is durable and stands up to stains and damage. It’s a good choice for a bathroom remodel since it holds up under high humidity. It is simple to clean, and the many available shapes, colors, and patterns let you express your creative side.

Laminate Wood Flooring

Laminate offers the beauty of hardwood flooring but is less expensive and more resistant to wear and tear. Installation is simple since it doesn’t involve nails or glue; the pieces click into place. Like all of the flooring options discussed above, laminate flooring is easy to keep clean.

Interested in redoing your floors? Contact a commercial contractor specializing in flooring to discuss options for your home, contact DeWald L.L.C.

What Type of Floor Is Best for Your Space?

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Redoing your floors the right way starts with professional flooring services. A professional can help you to have the floors that you love with the worry-free installation we all dream of. Choosing the right flooring services will provide you with the floors that enhance your space.

Dewald LLC, contracting services offers professional flooring services and they have the skill set and the experience to ensure your floors are installed perfectly. All you have to do is figure out which type of flooring you want for your space.

Redoing Your Floors is a Great Place to Put Your Improvement Dollars

New floors will instantly upgrade your space and add value to your lifestyle. If you are spending hours scrubbing floors to try to improve their appearance, it may be time to contact a trusted flooring service and get new floors.

New floors can change the entire aesthetic of a space and make the whole room feel brand new. It can be the part of your interior décor that anchors the space together.

Choosing the Best Flooring for Your Space

You have some important decisions to make about which flooring is right for your space. There are a couple of things to consider when choosing flooring materials. While carpeting makes up a little over 50% of the flooring industry, it is not the best choice in all situations.

What should you consider when you are choosing the right flooring for your space? Some of the things to consider include:

  • What is the space used for?
  • What type of traffic does your space see?
  • How much do you want to spend?’

Deciding on the right flooring material largely comes down to what your space is used for. For example, tile flooring is an excellent choice for the bathroom, kitchen, foyer, and other rooms that are exposed to a lot of moisture.

Hardwood flooring is an excellent option for all types of living spaces except bathrooms. Moisture can be the enemy of hardwood floors. Carpeting is not the best choice for any area that can potentially become wet.

Traffic Spaces

The amount of traffic that space sees also plays a critical role in which flooring is best. For example, carpet can easily pick up dirt in a hallway, foyer, and other high traffic areas. It can be very difficult to keep clean. Tile or hardwood in these areas can work out beautifully.

The goal is to choose the flooring that will look great and require as little maintenance as possible so you do not have to spend every day cleaning your floors. The right flooring services can help you to make an informed decision about which flooring option is best for your space.

If you are ready to transform your space with new flooring call the flooring services that you can trust today.