Sunday, November 29, 2020

Repaint, Reface or Replace Kitchen Cabinets?


Kitchens are an important room in any home. People spend hours in them cooking, eating, and cleaning. The cabinets and countertops see a lot of action, so there comes a point when some sort of renovation is called for. The question every real estate investor asks is: Should I repaint, reface, or replace the kitchen cabinets?" There are basic factors to take into account:

The Basic Factors

1. Do you, as the real estate investor intend to rent the property or flip it?

If it is a rental, will an improved kitchen encourage prospective tenants to choose your property before others currently available for lease? If you intend to sell the property, will improving the kitchen help you to sell quickly and at a higher price, and will the higher price at least cover the costs of improvement?

2. How does the rest of the interior compare to the kitchen?

If the other rooms' fixtures, carpets, etc. are all in good shape, but are let down by the kitchen, then bringing that up to par with everywhere else may be a good decision. If the whole house would benefit from improvement, is it worth only renovating the kitchen cabinetry?

Repaint, Reface, or Replace

Consider the cabinetry as a whole:

  1. Are the fronts simply out of style? If so, the decision is about repaint or reface. If the cabinetry is metal and rusty, then repainting makes less sense. There is often so much work involved in preparing old metal doors, interior surfaces, and shelves, that replacement may be the only sound option.
  2. Are the cabinets too outdated, poorly designed, and constructed? If they are not very functional in terms of size, load-bearing capacity, location or the number of cabinets, then replacement may be the best solution. Families want and need enough space to store all the pots and pans, plates, drinkware, and other cooking items to meet today's fashions and needs - woks, pizza stones, etc.
  3. Have the floor or walls sunk or moved resulting in gaps between them and the cabinets? If so, can that problem be solved without tearing out and replacing the cabinets? If not, full kitchen refurbishment may be the best option.
  4. Is the cabinetry moldy or hygienically compromised in other ways? If so, can it be corrected to meet state or municipal standards? A buyer's home inspector or future tenant who discovers what they consider to be an attempt to hide such a problem may cause a bigger problem than replacing the old cabinets would have been.
  5. If the cabinets, themselves, are sound, focus on aesthetics and cost. Can the door and drawer fronts be painted, so they look new and welcoming? If not, it may be better to avoid the "instant turn off" by a prospective buyer or tenant by refacing them.
  6. What will the initial cost be, and can it be easily recovered in rental income or sale price?  Replacing a set of cabinets can cost anywhere from $10,000 and up. Refacing will cost $5000 or so depending on the materials used. Painting is the least costly solution.

Final Comment

If the current kitchen cabinetry is safe and functional enough to attract tenants or buyers, then refacing or repainting may be the right choice. If simply addressing the surface issues will not deliver a lasting and sound result, then full replacement may be the right route to follow.

Sunday, November 22, 2020

Rental Property Improvements for Remote Working Tenants


Why Make Improvements for Remote Working and WFH Tenants?

More people are working from home (WFH), and the number is likely to grow. As a rental property owner, if you make your property more attractive to remote working and WFH tenants, they are more likely to choose to rent your property than anyone else's, and are more likely to renew their lease, thus reducing vacancies. The improvements may also enable you to raise the rent to cover the costs of improvements and to attract your preferred tenant.

Many tenants look for an efficient and convenient workplace as well as a comfortable and pleasant home. Many suggested improvements deliver both.

The number and type of improvements you can make obviously depends on the individual property. A one bedroom apartment offers fewer options than a three bedroom house, so please look at this list from two perspectives:

  • Does your property lend itself to the idea?
  • Can you play with the basic idea and come up with something that you can use?

The 10 Improvements to Consider

The Property Itself

  1. Repaint the walls in the "office area" so they are pleasant, calming, and bland. If the tenant attends Zoom or similar meetings, having a plain background makes sense.
  2. Keep the HVAC well maintained. Efficient WFH all day demands comfort in the workplace.
  3. Add shelving so frequently-used items and reference materials are always to hand.
  4. If you have designated a bedroom as the home office, and if it has a walk-in closet, add shelving that will take both clothes and, say, letter-size and legal-size files. Even if the next tenant does not work from home, useful and well-designed shelving is always a plus. Children's toys will be kept tidy and safe just as easily as files and clothing.
  5. Fix a magnetic or regular dry-erase whiteboard and pinboard to the office wall. If the room is used as a bedroom, a child will happily use both for fun or schoolwork.

Furniture

  1. Offering a partially-furnished property adds rental value. Buying a pre-owned desk and executive chair looks good, adds to a tenant's sense of importance, and is comfortable to sit at all day.
  2. Provide inexpensive filing cabinets and bookshelves. Give the tenant permission to modify the spacing by rearranging the shelves.

Computer and WiFi

  1. Provide fast internet and a powerful WiFi router. You could even make it a dual band router and WiFi extender to make it easy to access fast internet service from anywhere in the property. Again, if the tenant does not WFH, many play computer games and watch films on their computer,
  2. Provide a big external monitor to make multi-screen use easy and efficient.  It can be removed if not needed, but if it is wanted, it is the sort of extra that delivers the "wow factor."
  3. We live in the Battery Age: laptops, tablets, phones, etc. So providing a charging accessory in the home office will send both a message about the property's unique potential, and will enable a higher rent charge.

The Takeaway

Stand out from your competition, and charge a higher rent. These improvements matter to remote working and WFH tenants. They also make a traditional home more attractive. Office furniture and technology equipment can be easily removed if not wanted.

Sincerely,

Friday, November 13, 2020

Getting Rid of Popcorn Ceilings


Popcorn ceilings were popular in the 1970s, and chances are you might own an older rental property that still has them. They are unsightly, and could potentially scare away potential tenants. If tenants are not scared away completely, you might have to drastically lower your rent price, which means you will bring in less income.

Popcorn Ceilings and Safety 

In addition to just being out of style, many believe popcorn ceilings are not safe. During the time period that popcorn ceilings were popular, asbestos was also popular and used frequently by home builders. Many associate one with the other. If a potential client sees a popcorn ceiling, he might also assume your home has asbestos, which can cause health problems. 

How to Remove Popcorn Ceilings

It might be better to have a professional company remove your popcorn ceilings. They have the tools and equipment to do it easily. And, if your home does have asbestos hidden away, the professionals can remove that while you are out of the home, so you do not breathe it in.

If you remove the popcorn ceilings yourself, there are a few steps to follow:

  • Prepare for a big mess by placing drop cloths on the floor, and over the furniture
  • With a large, wide putty knife, scrape the popcorn ceiling. This might be easier if the ceiling is wet. If it does not work well dry, consider spraying the ceiling with water.
  • You will need to remove any ceiling fans or lights to scrape behind them.
  • Take care not to scrape too hard and create gouges that you will need to fill in before painting

Is it worth it to remove Popcorn Ceilings?

Yes and no. Yes, it is worth it to remove popcorn ceilings. No, it is not worth it to do it yourself. It is a messy job, and if not done right, the dust and debris that you inhale could cause you bodily harm. It is worth it to have a professional company remove the ceilings. They have the right tools, and know how to test for asbestos. 

Reach out and contact us to discuss any questions regarding popcorn ceilings in your rental properties!

 

Why do Gutters Matter?

 

Gutters are an important part of a building's exterior. Badly-maintained gutters can result in basic roof damage because they pull away from the building, as well as in water damage to walls and foundation areas because rain and snow melt is not channeled away from the building. As the rental property owner, it is essential that the lease makes it clear who is and who is not responsible for gutter maintenance and repair.

If the tenant has or assumes responsibility, there are two problem areas which may arise:

  • A careless tenant may not maintain and repair the gutters properly, resulting in direct or subsequent damage to roof, walls, sidings, interior roof space, etc.
  • The tenant may fall off a ladder or off the roof and make a legal claim because the accident happened on your property.

Gutter Management and Maintenance

  • Job 1 is to check the gutters are serviceable. No rust, poor joints, especially at the corners, and no holes. All these allow water to seep or run into the home or down the wall and to pool at the foundations.
  • Job 2 is to keep the gutters clean of leaves and other debris. They cause two major problems: if water cannot flow, it overflows, and debris can become a home to insects and vermin which can invade the home.
  • Cleaning should be done after the trees have all lost their leaves, after high winds may have blown debris onto the roof, or at any time if last year's maintenance was missed.
  • Wear the right clothing: gloves, eye goggles, overalls, and headgear. If you are climbing a ladder to reach the roof, consider wearing a helmet, and how you can minimize slip-and-fall accidents.
  • Use the right equipment: a roof rake, water hose, leaf blower or pressure washer as appropriate.
  • Clean the roof before the gutters, so anything that goes from the roof into the gutters only has to be dealt with once.
    You may decide to hose the roof, then the gutters or use a leaf blower or pressure washer on the gutters.
  • Clean out the downspouts using a flexible brush or water jet. A blocked downspout is almost as bad as a blocked gutter.

Winterize the Gutters

Ice dams can result in water damage. When the melted snow backs up behind a block of snow and ice it may find a way into the roof space and down onto ceilings. If part of the roof is susceptible to ice dams, install a zigzag heat cable from an outside GFCI, up a downspout (to keep it above freezing) and attach it to the roof edge.

Install Gutter Covers

There are several products on the market which are placed over the gutters to let water flow in, but which keep out leaves and other debris. They remove the need to continually clean the gutters.