Renovating a Property for Rental
In order to attract new tenants and stay ahead of the competition, it is good practice to reinvigorate a rental property from time to time. However, considerations for return on investment should be a priority with every penny spent being taken into account. Whether big or small, whilst planning an overhaul, do the maths. What budget is it I am working with? What value will be added, if any?
By implementing the right tweaks and changes you can get the absolute most out of your buy-to-let property. If expenditure has been a consideration from the start and the right amount has been spent, the financial rewards further down the line will make the financial investments made worthwhile.
Where to start with a budget
Renovating a rental, above all else, is about maths and finance. The rent in which a property is able to generate in proportion to its value (or rental yield), is a primary consideration in all areas of renovation. Is the renovation really worth doing if it will add no extra value in the long run?
Although being sensible with money and budgets is crucial, there are certain areas of a property where there is just no point cutting costs on. This includes areas such as carpets and flooring, paints (opt for brands which are reputable and be sure to invest in anti-mould paint for the bathrooms) and bathroom fittings. If you opt for cheaper options with these, other than splashing out initially, it will likely cost you more in the long-run.
Time is money, therefore, take into account consideration your schedule and time frames. The longer that is spent on renovating properties in between tenancies, the longer there is nobody living there which is a hit financially. If you plan to schedule any work, ensure this is done for the day after the tenants are due to leave the property and attempt to minimise the timescale as much as possible without compromising the quality of the work being done.
On the notion of work being done, when considering tradesmen have a builder you trust to take a look over the property initially so they can make recommendations for upgrades or improvements throughout your property. This professional opinion could be the difference between wasting money on improvements that need not be done for many years and making beneficial changes to your property.
How to easily add value to a rental property
With the rental market today being extremely competitive as landlords all over the country looking for ways to give their property the edge over the competition, securing ‘quick-wins’ could make or break a prospects decision to choose your property over another.
A nice carpet may be homely and cosy but this can be easily damaged or marked and wears down over time. Buy-to-let properties are renowned for taking a beating, so instead consider opting for laminate or wooden flooring? This option is relatively easy to install yourself, saving you money on labour.
It is common knowledge that in the world of renovations, a property’s kitchen and bathroom are the real money makers, so this is always an ideal area to start. These kinds of renovations, however, can be costly. Weigh up the pros and cons and be sure to be smart with the changes. Simply painting cupboard units is a great way to update and refresh a kitchen with greys and greens being particularly popular at the moment due to whites and light neutrals not being as hard-wearing.
Although people do not like a dark property, installing extra windows is a very costly task. If this is something you feel needs doing and do not have the budget to hand, ways around this include adding thoughtfully placed mirrors to create a trick of the light, with this making the room feel brighter, too. Consider turning practical items within your property into exquisite design features such as dramatic light fixtures being installed in the kitchen or living area or incorporate industrial style lights with exposed filament bulbs to impress prospective tenants. Keep in mind though, maintaining a healthy balance between aesthetics and a sensible budget is key.
How to set your property apart from the competition
Simple ideas can sometimes be the best when creating unique selling points for your property. For instance, including a few large wine racks in something as ‘mundane’ as your cellar can transform it into a wine cellar. By taking this approach, something which is not usually seen as being exciting can be transformed into something unique and interesting – this may be what ends up swaying prospective tenants.
Other considerations include turning your property into a ‘smart home’ with thermostats being installed or smart door locks to give your property the edge over the competitions. With security at the forefront of peoples minds, installing an intelligent security system may be worthwhile.
As previously mentioned, rental renovations ultimately boil down to a healthy balance of aesthetics vs budget. If you blow thousands on turning your rental property into a palace, does not mean your tenants will treat it as such. At the end of the day, it is not their money which has been invested into the luxurious carpets or expensive wallpaper. Simple, fresh and clean can be said to be the more primary considerations when renovating your rental property.
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