I just installed a new vanity top in the bathroom of a duplex that I own. I purchased a nice granite vanity top with a chrome faucet (8" centers). It is really beautiful. I spent a couple hundred dollars more than I needed to.
How do other landlords feel about using higher quality material. The quality of the material is at the higher end for a rental property in this area. However, it is not out of the question for some units that I see in that area. Many of the newer buildings in the area are owner one side, tenant on the other. Because of this, it is not uncommon to find nicer material on one side.
I put this nicer fixture in feeling that I will keep my tenant happier (a good tenant who I would like to retain) and the perceived value added is going to be higher if/when I do sell the building.
I don’t own any duplexes so don’t mistake my opinion for anything more than what it is.
I wouldn’t justify giving anyone anything without receiving something in return, in this case rent. Typically no one appreciates anything unless they have to pay for it.
I rehab to retail and my rule with granite is to put it in anything that sells for 400k or more. Any added value of granite has already been decided by your market.
Boblaw - I think you did okay. Granite is a product that will look good for a long time. You won’t need to replace it because it is dated or discolored. If you want to keep your tenant happy and at the same time add some resale value and upgrades why not??? Hey, its your place! ;D
P.S. I would have put in granite too.
Not to sound like a slum lord, but your market dictates the amount that you will spend on amenities; in terms of the quality of amenities. Granite is great, but there are cheaper products that still produce a visually aesthetic effect. Basically things brand new typically look good.
We have a multi unit building for college students that I would never in a million years put granite or any high end materials. Everything is basic with cool architectural placements that make the rooms visually look bigger. Instead of a tub we went with a stand-in shower to make the bathrooms appear bigger. Now if I were charging high rental prices in a luxury condo community then the amenities might be different. Usually these types of rentals are only rentals because the market crashed and the developer couldn’t move the high end luxury unit so they are renting to offset there mortgage.
This location is more suited to young married couples. It is not close to a college and tenants are usually moving on to purchase their first home.
I agree with you that it doesn’t make sense to put into college housing. I am looking to keep tenants for a couple of years, or more, with nice touches like this. I want them to understand that if they keep the place in good shape I will continue with higher quality updates as needed.
It definitely depends on your location. I just wanted to point out that you can still achieve nice visual effects with standard materials. If you are involved with lease options then I think high end maybe the route to take or of course if you are competing with luxury accommodations. It also depends on your competitors, other landlords, in your area. I noticed that sincere homebuyers without an investment bone in their body, love little at home projects. They buy their first home and put in their own granite countertops and redo the bath after a few years. So my point is to fully be aware of what your updates are accomplishing. Always keep in mind, the law of diminishing returns. A ceiling of value will eventually be reached no matter how many amenities you add to a place.
two aspects: downstream cost/maintenance and “beauty contest”. I’ll explain the latter one first; that means in a weak rental market some nice touch can be the difference between renting and vacancy BUT (and this is a big BUT) you have to know you target market. Vacancy is a real killer and a few nice extras can be qucikly covered by eliminating/minimizing your vacancy, but only for the right folks. Second, I tend to hold properties long term so I like to go at least one step up to minimize maintenance. The bottom of the rung, el-cheap stuff will just not last and I do some stuff myself so I don’t want to have to redo work in a couple of years. Sure stuff get damaged, but depending on your area/state laws, aggressive damage charges can be more of hassle than it worth (not to mention a few small claims court appearances).
Thanks aak5454. I agree that the touches will sway a tenant. The impression that a couple of nice features have can make the difference in a tenant choosing my place over another. I guess I might just think of it as what sells a house. Kitchen’s and bathrooms. If I have a couple of nicer touches in there (within reason) I should be able to retain a good tenant or get the new one faster.