Renovating your investment property
A buy-to-let (BTL) property renovation, typically for landlords who want to buy property to rent it out, is a decision made entirely differently than a home remodelling decision, where the owner will be the permanent resident of the property. Choices about buy-to-let rental properties should be made in light of one’s financial situation. Therefore, if you are now debating whether you should be renovating your investment property, have a seat for 5 minutes and let us assist you with the options.
Making the choice to renovate
Does your property need a renovation? You are likely to be required to complete major works if you have purchased a fixer-upper for significantly less than market value and without the fundamental necessities like plumbing and electricity. However, the main emphasis is on proposed improvements to perfectly livable rental properties that you think would raise the value and/or rentability of the property.
Any of these little to large changes, such as a fresh coat of paint, a new bathroom suite, or an addition to the property, should only be undertaken after careful consideration of the financial benefits to you.
By making small improvements, such as the following, you can make your home more desirable and somewhat raise its rental value.
- Painting the walls
- Refurbishing or upcycling the interior and exterior doors
- Well maintained flooring
- A clean and presentable driveway and gardening, perhaps a resurface of a driveway, repainting a garage door etc
- Changing the doors and handles on the kitchen cabinets
- Putting up fresh window blinds/curtains
All of these upgrades can be made quickly and affordably. It can also be a very efficient technique to boost interest from tenants in a rental property.
Increasing the square footage of your BTL property can significantly raise the property and rental value. The space for a new tenant and a sizable monthly revenue gain can be found in extra bedrooms and bathrooms. It is important to think about if an expansion will be useful for you because, depending on the size, it might enable you to accommodate numerous additional tenants.
Modifications can take longer or shorter based on the size of your residence, but on average, an attic retrofit can be finished in about six weeks. And you should plan on the work taking about 18 weeks if you are adding an addition to the side or back of the house. This could require up to a year if you think of building a new basement.
It is crucial that you account for these expenses and compare them to the advantages.