Did you know that adding an extension to your home, especially an outdoor living room, can increase the property value by up to 20%? It’s true. This boosts the overall appeal of the curbside and makes your tenants feel more at home.
Landlords can set a more competitive price for their rental if the outdoor living room is well-built. Some renters may be happy to renew their leases after this. However, achieving this may need consideration of key elements like weather-resistant furniture, outdoor lighting, strategic plant placement, and more.
So, how much will it cost to build an outdoor living room in your rental unit? This article can be your guide for planning and breaking down the cost from labor to materials.
Benefits of Building an Outdoor Living Room
There are several reasons to add an outdoor living room to your rental unit; the first obvious reason is aesthetics. This addition makes your property look more attractive, letting it stand out in the market, attract more renters, and even justify a rent increase.
At the same time, tenants are more likely to rent a home with a cozy outdoor area, giving your property an edge against the competition. Also note that this comfort renters feel translates to longer stays, thereby reducing turnover and increasing your earnings in the end.
Factors that Determine How Much to Build an Outdoor Living Room
The total cost for building an outdoor living room can range between $35,000 to $125,000 and even more. The money spent depends on factors like materials, labor, utilities, and more.
1. Materials
When building an outdoor room, you need to consider the materials and fixtures you’re including, as these will dictate the total cost and quality. Let’s use the patio, furniture, and outdoor kitchen as examples.
Decking or Patio
For wooden decking, they can cost anywhere between $15 to $35 per square foot, and this includes installation. On the other hand, composite decking is a bit more expensive, ranging from $20 to $45 per square foot, but they are easier to maintain and more durable.
As for concrete patios, they are the cheaper option since they cost $6 to $15 per square foot, which is great for landlords on a tight budget. But some people prefer to go for the slightly more expensive but still budget-friendly option like building a ceramic patio or even a stone patio, which can cost anywhere between $15 to $30 per square foot.
Weather-Resistant Furniture
Since you’re building a room outdoors, you’ll need furniture that’s resistant to the elements. Granted, these come in different materials like teak, aluminum, and synthetic wicker, and each comes with its own price tag.
Nevertheless, if you plan to get a sofa built to handle outdoor conditions, it can cost you anywhere between $600 to $3,000. Want to add a dining set to the mix? That’s another $500 and $2,500, with accessories like cushions and covers that can cost an extra $100 to $500 based on the quality.
Outdoor Kitchen (Optional)
An outdoor kitchen can really transform your rental unit and make your tenants feel even more satisfied. If you plan to include this, note that a basic kitchen setup with a countertop grill and storage can cost you around $2,000 and more.
If you want a more elaborate kitchen with a fridge, sink, oven, and other things, you’re looking at around $10,000 or more. You will also consider weather-resistant countertops and cabinets like granite, stainless steel, etc., for style and durability.
Now that you have a broad understanding of how materials affect the cost of building an outdoor living room let’s move on to the labor aspect.
2. Labor
When building an outdoor living area, many professionals recommend hiring contractors because they can ensure the final result is high-quality and as you envisioned. However, expect that their fees can be expensive.
While the cost depends on the region, complexity of the task, and materials used, you can expect to pay a contractor an average of $50 to $100 per hour. In the end, the entire project can cost $5,000 to $15,000 or more for labor.
Note that this is an estimate, and you will need to request a quote from a contractor or multiple contractors to know how much you’ll need to pay in labor costs.
3. Building Permits
Before making modifications to your property, you’ll need to obtain a permit from your local government as this ensures your renovation meets local building codes and safety standards.
To obtain a building permit, expect to pay anywhere around $100 to $500, depending on how many changes you plan to make to your rental unit. This is why it’s necessary to check with your state’s building department for the fee and other specific requirements.
Failing to get this permit can mean serious legal trouble, fines, expensive rebuilding, safety hazards, and more.
4. Hidden Costs
Every project has unforeseen expenses, and these hidden costs can creep in in the form of ongoing maintenance like sealing decks, replacing plants, and cleaning furniture. They can also come in the form of utilities like outdoor lighting or heating elements, especially for installation and how much electricity you use monthly.
This is expected as even a proactive rental manager in Northern Virginia should always be on top of outdoor maintenance for great curb appeal. Essentially, landlords must always be ready to keep their property pristine.
That’s why these hidden costs are unavoidable, and the best option is to be prepared by thoroughly analyzing your outdoor room expansion plans. But if keeping up with the requirements feels cumbersome, then consider hiring a contractor to help you out.
5. Incorporate Plants for Privacy
One problem with an outdoor living space is privacy, as you’re more exposed than indoors. Some landlords combat this problem with outdoor curtains, but others recommend plans as they can also create a relaxing ambiance in your outdoor living space that makes tenants want to stay longer.
Some popular privacy plant choices include bamboo and hedges, especially boxwood or privet hedges that basically give you a lush green wall. Nevertheless, whether you’re using bamboo or hedges, the layout is what makes them effective, as placing them around the edges or in your outdoor room can provide a lot of privacy.
Keep in mind that they can be costly, around $50 to $300 per plant, depending on the type of plant you use. You also have to factor in soil preparation, planting materials, and regular maintenance; these can add another $100 to $500 to the cost.
6. Outdoor Lighting
Last but not least, outdoor lighting will take a substantial cut from your budget since it enhances the beauty and function of the outdoor room. Naturally, the cost depends on the type of lighting you intend to use – Solar or LED lights.
For example, solar lights are more eco-friendly and use sunlight from the day to illuminate the room by night, saving you on electricity bills. At the same time, they are also easy to install, energy-efficient, durable, and can cost $20 to $100 per light.
On the other hand, LED lights are equally energy efficient and durable but come in more styles like string lights, pathway lights, and spotlights. However, they are slightly more expensive, costing around $30 to $200 per light, but with more brightness and longevity than solar bulbs.
Conclusion
Building an outdoor living room can be a smart investment for landlords. Even though it can be expensive, it boosts the property’s value and helps justify the rent increase, all while offering a luxurious and functional space.
If you plan to make an outdoor living space, be sure to consider the cost of materials, light fixtures, labor, and more. To simplify the process, hiring a professional contractor can handle the complex brainstorming, provide a solution based on your budget, and get to work as soon as they can.
