When it comes to home design, there are plenty of exciting ideas for 2021 – but some are better suited to a rental property than others. Whether you’re already lucky enough to already own a US vacation property (and you want to make the most of it) or you’re planning how you might update a rental property if you buy one this year, remodelling a rental property investment is a great way to enhance its value and attract more and higher-paying renters. From multi-functional spaces to hands-free upgrades and more, these remodeling trends can help make your rental property a must-book location – and a smarter investment – this year.
1. Multi-Functional Spaces
Re-thinking how we use rooms is a major home trend this year, and that multi-functional mindset can be one of the best ways to add value to your home. For example, if you’re remodelling your rental property’s living room, consider creating a dedicated home office area within the space. When you market the property, you can then attract renters who might need space to be productive during the day – but still want a comfy living space to relax at night.
2. Soaker Tubs
There’s no better time to settle in for a spa-like bath than when you’re on vacation, so adding a deep soaker tub can be a value-adding old house bathroom model idea. Don’t have the space for a big bathtub? You can also consider a smaller, more DIY-bathroom remodel to create a spa-like ambiance by painting the bathroom in a Zen colour palette (white always works, or go with a neutral pale grey).
3. Island Living
Looking for a big-impact kitchen remodel idea to elevate the value of your US rental property? Adding a kitchen island makes a kitchen feel more chef-worthy, but it also adds prep space and a place to gather – which is a big win for renters. If your vacation rental could use an update, you may want to consult with RBC to discuss accessing the equity in your vacation home through a home equity line of credit* or refinancing to put towards long-term value upgrades.
4. Fashion Faucets
Swapping an old kitchen faucet for a sleek new model is a big kitchen trend for 2021, and it’s a great way to upgrade the look (and value) of your rental property without demolition or major home renovation. Look for a faucet model a sleek metallic tone, shining brass or matte black.
5. Hands-Free Details
Going hands-free is increasingly popular, and integrating touch-less details (such as hands-free faucets, soap dispensers, cabinet doors and lighting) into your rental property is a relatively simple, budget-friendly way to give the home’s functionality a modern feel and a value-adding boost.
6. Underfoot Upgrades
Dingy floors show the age, wear and tear of your rental property – so replacing them with a modern flooring trend is a good cosmetic upgrade. However, keep in mind that the best flooring for a rental property must be hard-wearing. Hardwood might look luxe, but it’s also a big expense that’s easily damaged. Instead, remodelling your floors with a durable material like luxury vinyl or laminate may be a better choice. While you can do one room at a time, replacing all the flooring at once creates value-adding flow and a cohesive look. To fit a renovation into the budget, consider contacting Royal Bank to explore your financing* options as a property owner.
7. Zen Spaces
When remodelling this year, you might be well-served to take the less-is-more approach. With more people looking for calm and serenity on their vacation, creating a small space for Zen – whether a dedicated meditation or yoga room, or just a relaxing outdoor garden – is a great way to attract renters.
8. Outdoor Oasis
Speaking of outdoor spaces, in upgrading your property’s backyard or outdoor spaces is money well spent. For a rental property, the best home upgrades outdoors are easy to maintain but enticing to renters. Investing in a deck made from durable composite decking, for example, gives renters a place to relax outside, but doesn’t require a lot of regular maintenance.
9. Neutral Tones
One of the most-loved, easy DIY projects for home remodelling is just to paint the walls – with good reason. Fresh paint refreshes a space and gives you a great return on investment. While you may want to embrace bright colour or textured wallpaper in your own living space, follow the minimalist trend in your rental property and paint in a soft, neutral shade to maximize the value of your efforts.
10. Energy Upgrades
Sometimes, the best upgrades to increase a home’s value are the things you don’t see. Remodelling your US rental property to make it more energy efficient cuts down on energy costs and your rental property expenses list over time. The best places to start? Consider installing energy efficient windows, upgrading insulation or swapping old appliances for newer, energy-saving models.
Check out the video below to find out which three upgrades Sarah Baeumler has at the top of her list when it comes to adding value to a vacation property:
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*Home Equity Lines of Credit (HELOCs) are subject to approval, including verification of acceptable income, credit worthiness and property valuations. Minimum and maximum property values and maximum loan-to-value ratios apply. Homeowner’s insurance is required for all loans and lines of credit and flood insurance is required if the property is located in a Special Flood Hazard area. In addition to a ½% Origination fee (with a $500 minimum and a $2,000 maximum) due at origination and a $50 annual fee, third party closing costs for Home Equity Lines of Credit may range from $900 to $9,000. Home Equity Lines of credit are not offered for properties in Texas. Home Equity Lines of Credit are not available for investment properties. An investment property is a property that is not occupied by the owner/borrower for at least two weeks per year.
Refinancing not offered for properties in Texas.
Second image courtesy of Unsplash, other images courtesy of Getty Images