Whether you're putting a property you've just purchased onto the rental market or trying to find new tenants for an existing rental property, it might seem like renovations are an unnecessary expense. However, renovating a property before putting it on the rental market can help you make that money back in the long run and protect you from unexpected expenses.
Here are just four reasons renovating a rental property offers such a good return on investment.
1. Maximise the Property's Value
The most obvious benefit of renovating a rental property is being able to charge more for it each month. Even a fresh coat of paint and some new furnishings can boost the property's value a little, but you can take things even further by updating appliances and carrying out other modernisation work. You may be surprised just how much more people are willing to pay each month for a recently renovated property. In some cases, you can even split larger rooms into two single rooms, which will dramatically increase the rental value.
2. Attract Higher Value Tenants
Anyone who has ever let out a property will be able to tell you just how much difference high-value tenants can make. These are the people who are going to pay on time, avoid damaging the property and often stay in the property longer. All these things can help save you money, and those high-value tenants tend to be more attracted to properties that have been well looked after.
3. Avoid Maintenance Requirements
Maintenance issues can become a real chore for landlords, and any issues may end up really eating into your profits. While it might not seem like it's worth spending money on new fittings and appliances, doing so can help avoid expensive maintenance work in the future. This is particularly true with rental properties since tenants often require work to be completed as soon as possible when key appliances stop working, and those rush jobs tend to cost extra.
4. Improve Energy Efficiency
Many tenants will take care of bills themselves, but this isn't always the case. If you opt to include bills in the monthly rental price, you'll obviously want energy costs to be as low as possible. By conducting a few modernisations, you can upgrade everything from insulation to the boiler and make sure your property is more energy efficient. That means you won't end up paying more than you expected each month just because your tenants like to keep the heating on.
For more info, contact a local company like TSG Realty.
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