When it comes to rental properties, potential buyers look at both exterior and interior appearances. Especially now, as many of us continue to work and learn from home, having a presentable outdoor space helps us draw a definite line between our work and personal lives. Not only are outdoor areas a plus for many buyers, but they can also provide bigger returns to landlords who add them to their properties.
If you’re looking to increase your rental property’s value, here are a few outdoor upgrade ideas you can add to your rental property.
An outdoor kitchen is a perfect way to transition the indoors to the outdoors. If your tenants love to bust out the BBQ grill and entertain, this is the perfect place to do it. Guests won’t have to crowd around the cook, and your tenants won’t have to worry about dealing with unpleasant odors around the house. If you plan to add an outdoor kitchen to your property, prioritize space to allow more room to cook and don’t spend on unnecessary appliances. If a tenant or buyer doesn’t use a certain appliance, it may become undervalued.
Outdoor kitchens can provide an ROI of 100% to 200%, especially for homes in the south and southeast.
If you want the camping experience without actually having to go camping, a fire pit is the way to go. It easily adds to a home’s rental value as a space that buyers or tenants can use to bond with family and friends. Whether you want to share scary stories by the fire or make s’mores, a fire pit is an excellent investment that easily recoups the cost of building it.
If you’re looking for a cost-effective way to add a fire pit to your property, many DIY options are available. Just remember to build them in an open space and away from any structures.
Swimming pools are great for health-conscious tenants and families with young children. Not only that, but they also add aesthetic appeal and increases a property’s value. However, building a pool can cost you a lot. Not including maintenance, the average cost of building a swimming pool is around $50,000.
Compared to other outdoor upgrades, pools aren’t as valuable. Landlords can recoup anywhere from 7% to 50%, depending on how often a pool needs maintenance. This can also lower your chances of getting a tenant, as many potential buyers may not like the associated costs of having a pool in their home.
Cars are big investments that many people want to take proper care of. Car shelters can help protect vehicles from weather elements like rain, sleet, and other abuses that could damage them. Car shelters are multi-purpose spaces as, aside from protecting vehicles, they can serve as a shaded play area for children or an outdoor porch when needed.
No one wants a lifeless home. Adding greenery and taking advantage of landscaping services is a good way not only to increase your rental property’s value but to enhance your property’s appearance. Planting flowers, shrubs, trees, and natural walkways can set you back some money, but the returns you can get from beautifying your property are better compared to other upgrades.
Most buyers look for a patio when searching for a home, making them a valuable upgrade to consider for your property. They’re a great addition for tenants who like to enjoy the outdoors with the comfort of being indoors. Your tenants can also add seating and other furniture to make the area a good spot for small get-togethers and family bonding activities.
Depending on the size and materials you choose to use, an average patio can cost around $3,400 to $6,500. Fortunately, patios can provide an ROI of up to 100%. They not only enhance your tenants’ outdoor living but also give you good returns.
Similar to patios, decks can be a great way for you to enjoy the outdoors from indoors. However, unlike patios, decks can increase your property’s area by adding to the square footage of your home. This extendable space allows you the ability to quietly enjoy nature, either by adding potted plants or having a view of the beautiful landscaping.
While these upgrades can help increase your property’s values, keep in mind that other factors can affect this. These include the location of your property, its current value, and even city ordinances. Like with any kind of project, it’s best to do your research and consider your budget before adding anything to your property.