How Landlords Can Turn Renovations Into Rentals
If you're a landlord and want to maximize the amount you can charge for an apartment, you might need to invest money to make money. To get the most ROI on your renovations, read on. We have everything you need to know about cutting costs and raising income.
Remember - it's not your house.
The first thing to remember is that while your rental property will eventually be someone's home, it isn't yours. To you, it should be just a house, and to that end, you should renovate accordingly. Keep your personal taste, and any home comforts you can't live without, out of the situation. Treat it as the temporary home it will likely be for your tenants. Make it habitable, make it inviting, but don't worry about making it beautiful.
Repair, don't replace.
If something is broken or dirty, it's easy to just rush out and buy a replacement. While this might be more convenient, it's also much more expensive and potentially wasteful. Rarely, something can't be fixed, so look into your options first. Carpets can be cleaned, walls can be washed instead of painting, and appliances can be repaired.
Some rooms are more important to tenants than others - usually, the kitchen, followed by the bathroom. Who wants to cook in a moldy kitchen, or wash in a dirty bathroom? If you can only renovate or upgrade a couple of rooms, choose these two. Also, if you're looking at how landlords can sell unwanted property, an updated kitchen and bathroom offers up to 90% return on investment.
Remember the small things.
You really don't have to spend a lot of money to attract a tenant. It can be as easy as making sure you bring in a professional cleaning team at every tenant turnover, so it's sparkling from top to bottom for viewings. You should also keep an eye on fixtures and fittings, as loose cabinet handles, leaky faucets, and light bulbs that don't work can all leave a bad impression. You should also repaint the walls around every five years, and keep the paint colors light and fresh to really show off the space.
Don't forget the exterior.
While the tenant isn't going to live in the exterior of the house, it's the first thing they'll see when arriving for viewing and shouldn't be ignored. Make sure the front door is clean and well-maintained, and that any plants in the yard (if you have one) are alive and thriving. Add a few flowers if you can, as they're a cheap way to add instant appeal. If you have trees or bushes, trim them back regularly. Overgrown bushes can make a garden look abandoned.
Use their imagination.
Any tenant viewing a flat has only one thing on their mind. It's "Can I see myself living here?" You need to make sure the answer to that question is a resounding 'yes,' so ensure all rooms are properly staged (or just clean and bright if the apartment isn't furnished). Seeing how beautiful a space can be even when empty helps a tenant envision themselves and their furniture living happily there.
If you're a landlord and want to maximize the amount you can charge for an apartment, you might need to invest money to make money. First, use a local rent report like this one from ABODO to understand your market rate. To get the most ROI on your renovations, read on. We have everything you need to know about cutting costs and raising income.