The main objective when buying property is to make money. It’s always a good idea to buy something that needs a little bit of doing up then either sell it for a profit or in the case of regular landlords, charge more rent for a newly renovated property. The trick is to improve the rental property without spending all the profits. Here’s how to do that:
Don’t get attached
Your tenants will treat the property as their home, but you won’t live there, so don’t over-renovate a property. The idea is to get it to a clean, safe, livable space that is also inviting.
Look at it from your tenant’s perspective
When a potential tenant is walking around the property, try to see it from their point of view. Make sure it is as bright as possible, that it’s spotlessly clean and has a feeling of openness. When you are considering purchasing a property in the first place, ask yourself if a tenant could live here. Does it feel open and bright? What would make it feel inviting? If it means knocking down walls to make it open-plan, then that will be the way to go.
Repair before replace
If you can repair anything that is broken do that before spending money replacing things. Repairing is usually cheaper than replacing, and that is a good place to start in terms of saving money.
Here are some ways to do that:
- Clean carpets rather than replace them.
- Clean the ceilings and walls before deciding if they really do need to be repainted.
- Can the 3 broken tiles be replaced rather than pulling up the whole floor and starting again?
Kitchens and bathroom s will rent the property
This is where tenants look first. They can deal with small bedrooms but no one wants to have to have an old, tiny shower that is full of mould. The same goes for the kitchen. You don’t have to go all out in these areas, resurfacing the bath and the bench tops, replacing hardware, installing a new oven and topped off with a new paint job may be enough. Try to avoid ripping everything out and starting again – unless there is major damage that really needs to be addressed.
Fix up the garden
Make sure there is no rubbish the fence and mailbox are in great shape, weed the garden, mow the lawn and put down some mulch and the garden will look much better! Once you have done that, plant some cheerful flowers near the front and back doors and you will be making a fantastic impression.
What is your #1 priority when renovating an investment property?