Renovating an investment property – new or old – has its pros and cons. There’s plenty to consider and, if you’re reading this, you may just have been weighing up whether it is worth actually doing.
Whether renovations will affect your tenants has a lot to do with the type of project you’re completing. Smaller jobs, such as replacing light fittings won’t likely impact on a tenant’s life too much. But larger jobs, such as replacing carpet or painting are really best done when the property is vacant.
Expense versus value, is it really worth it? That’s to say, time the property sits vacant versus opportunity to improve your property’s rent-ability and potentially increase its value/revenue…
Here are some tips to make sure it is.
Firstly, set a budget and stick to it. Think of your budget in terms of dollars rather than checklists and ensure you keep to it. If you need, enlist the help of a third party to manage the renovation.
Renovating an investment is very different to your own home and it’s important to keep this in mind so you don’t get carried away and over-capitalise.
Further to this, remember that when your renovation is complete, it won’t be you enjoying it – it will be your tenants. Keeping things simple and practical and not getting carried away with fad designs will allow your property to stand the test of time and appeal to a multitude of tenants.
Prioritise what needs to be done within the property. The kitchen may be old, but if the roof has been leaking for months, you’re probably best to fix that first.
Depending on where your property is located, if your renovations are extensive, or even if there’ll be no disruption to neighbours at all, best to give them a heads-up to keep everyone happy. The last thing you want on top of the renovation is disgruntled neighbours.
Lastly, make sure you trust your tradies. Check their licenses are up-to-date and the quality of workmanship is up-to-par. Don’t be afraid to ask questions and ensure jobs are completed to standard. Time is of the essence when renovating investment properties – you want tenants in there ASAP – so ensure they’re aware of timeframes and keep communication up.
Unsure what type of renovation or upgrade will work best for your property? Talk to your property manager about whether tenants are looking for anything particular in their properties. Plenty of cupboard space? Easy care flooring? Fittings? Bright open property? It may give you a little inspiration and add an extra incentive to increase your return.