- The Numbers

In today's market, investors are receiving substantial Returns On Investment (ROI) from renovating and upgrading older dated units. Renovation costs can range from $3,000 to $6,000 for upgrades and $10,000 to $20,000 for major renovations on a per unit basis. 

One of our client’s apartments were recently renovated. This was a bachelor apartment and the tenant that was paying $570 per month in rent. We advised our client to renovate to the entire unit and add a bedroom from an underutilized adjoining laundry room.  The renovation budget was $26,000.

The renos included new flooring throughout, new kitchen, appliances, bathroom, light fixtures, paint, doors and trim.

The apartment is now a brand new 1 bedroom apartment. The new tenant is paying $975 per month.

The ROI looks like this;

Amount invested - $26,000. Annual rent increase - 12 month’s x $405 = $4,860 per year.

Return On Investment - $4,860 divided by $26,000 = 18.7% Annual ROI.

This is an improved use of space, will be easy to rent in the future and will attract a better tenant profile. The increased rent will also increase the market value of the property. 

Key Properties Niagara has been involved with renovations like this for over 20 years. For knowledge and insight, contact us today.