By Mi-Ling Stone Poole –

DEAR MI-LING: I am remodeling the basement of my rental property in order to increase the rent. Over the past five years I have had to add to the mortgage payment and now that I’m retired I just don’t have the income to supplement my mortgage and now is not the time to sell.

My husband and I have added a bedroom in the basement and we’re going to fix the stairs, which are too steep, maybe add a landing and then more steps.

We are considering adding another bathroom which would bring the total baths to three.

What do you think? Are we putting too much money into this rental home?

Rosa

DEAR ROSA: Adding a bathroom to your rental home will also increase the value of your home. However, it will cost more. Check the homes in your neighborhood to see what the average bathroom count is before you make that investment.

If you’re having a hard time making your mortgage payment, you don’t want to incur a lot of unnecessary costs. Remember, this is a rental property.

Concentrate on the following items:

→Clean carpets and floors.

→Freshly painted walls.

→Make sure all the appliances and heating and cooling units are working properly.

→Paint your front door and spruce up your landscaping.

→If you have the money to put in the third bathroom and it makes financial sense, then stick with the basics and don’t go over board on high-end toilets and sinks. A shower, sink and toilet should be sufficient.

The key here is not to overextend yourself with unnecessary repairs or remodeling when you are already stretched financially.

Earning extra money from a rent house won’t mean much if you’ve invested $20,000 in upgrades that need to be paid out right away.

What room have you recently remodeled?