Being a landlord comes with many risks—things like skyrocketing mortgage rates and late rent payments mean these risks are not for the faint of heart.
Fortunately, you can make a few upgrades to your rental property that will pay off in the long run. From making it more appealing to better tenants to slashing your expenses, we have a few ideas for upgrading your rental property to maximize your investment.
Ditch the Rented Water Heater
Water heaters are essential for any property, rental or not. But renting a water heater can be costly and come with restrictions. It’s a better financial decision to invest in purchasing your own water heater, even if it may require a large initial outlay. A new water heater typically pays for itself in three years of rental payments, leaving you payment-free for about a decade.
When it comes to rental property upgrades, lighting should not be overlooked. Poor lighting can make a space feel uncomfortable and unwelcoming, which is not ideal for anyone. Investing in upgraded lighting can help ensure your tenants feel safe and comfortable in their living space.
One of the best upgrades you can make when it comes to lighting is switching from traditional lightbulbs to LED lighting. LED lighting is more energy efficient and long-lasting than conventional bulbs, saving you money in the long run. You can also install motion sensor lighting outside your property, which is an inexpensive way to provide increased safety and security. If your rental property has utilities included, upgraded lighting can cut your power bill. If your tenants pay for their own utilities, energy-efficient lighting is an appealing feature.
Making electrical upgrades to your rental property is a great way to increase the home’s value and make it more attractive to potential tenants.
Ensuring your rental property has up-to-date wiring is a must. You’ll reduce the risk of electrical hazards and help keep your tenants safe. Your insurance company will also look more favourably upon you and your rates. Adding additional outlets will not only make things more convenient but helps avoid the need for power strips, which can cause fires.
If you are renting out your basement or another shared space, you might consider putting that space on a dedicated meter. This will separate the wiring for your rental suite, avoiding numerous potential issues while ticking one of the boxes necessary for creating a legal rental unit.
Finally, if you have an older home with antiquated wiring, upgrading it as soon as possible is important. Outdated wiring can be a fire hazard and may not be able to support modern electrical demands. By investing in an electrical upgrade, you can ensure that your rental property is safe and up-to-date.
Energy Efficient HVAC
One of the best rental property upgrades that pay off is upgrading the heating and cooling system. Newer systems are exceptionally energy-efficient, drastically reducing your monthly energy bills. If done right, this can also be one of the most cost-effective upgrades you can do. In addition to choosing an energy-efficient system, you can also add a programmable thermostat, seal air leaks and improve the insulation around your air ducts. Regardless of who pays for utilities, your wallet or tenants will thank you.
Hire a Professional
Electrical and lighting upgrades help improve your property’s value, achieve a better ROI and make your tenants safer and happier. Property owners should avoid taking on these tasks alone – HVAC and electrical are not DIY jobs. Hire a reputable local electrical and HVAC company to perform these upgrades safely and efficiently, ensuring they’re up to code and safe.