A large portion of the rental properties are owned by individuals that manage the day to day operations involved with the operations. A mistake many of these rental owners make is to renovate the houses as if they were their full-time home, which is not the case.
While it is obvious that improvements to your rental property can boost its potential, it is important that rental owners ensure they are updating what truly needs to be. Therefore, they need to choose a time to renovate that will benefit their needs and goals for the property.
We have compiled a list of seven factors you should consider before beginning any renovations:
1. Tenancy
Are you between tenants? While you can make small renovations with a current renovation by working around their schedule, it is best to leave unnecessary refurbishments and renovations for when you don’t have current tenants at the residence.
By doing this, you will avoid potential noise complaints and difficulties with scheduling. On top of this, you will be able to increase the rent for the next lease agreement.
To ensure this process runs as smooth as possible, it is recommended that you make an estimated timeline of your expected repairs that accounts for shipping and installation periods.
2. Your Budget
It is important that you are confident you have the necessary funds to complete all repairs – even if you plan on completing them yourself, they will be expensive. Before buying materials or hiring a contractor, be sure to draft up a budget that you can refer to when making decisions on updates and installations.
Remember that your time is money. The faster you can rent out your property, the faster you will begin receiving payments. Therefore, it is important that you create your budget before beginning so that you can choose materials and stay on timeline.
3. The Time Of Year
Depending on where you live, you can adjust your price at different times of year to account for a more competitive market. For example, summer is often a popular time for people to move apartments, and therefore you can begin listing your space at a higher price.
If your close to a university, then you should follow the school schedule and adjust your timing and prices for the peak periods of year
This means that you should always complete repairs and home renovations before peak seasons so that you can have a new tenant in fast.
4. Repairs
A sign that you need to renovate your property is if your tenants are constantly requesting repairs. It is better for your property (and your wallet) if you upgrade appliances and renovate difficult areas in the space rather than continuously repairing outdated or damaged appliances or spaces.
Short-term, it is perfectly fine to complete some of these projects while you have a tenant at the property. This could include fixing leaky pipes or changing some appliances. However, in the long-term, it is best to consider what repairs may need to be done when a tenant is not in the space.
5. General Contractors
If the project you want is not small, them you will be limited to working with a time that your selected contractor is available. If this is not possible for you, then you will have to find another contractor that can do the upgrades following your timeline.
Similar to peak seasons with renting your property, there are peak seasons for renovating properties, so it is important that you contact a contractor as soon as you decide you want work to be completed so you can find a suitable time.
6. Tenant Attraction
Another way to recognise your property needs updating is whether it is attracting tenants. Upgrading it will make it more appealing to potential applicants. The longer you let your property sit empty, the more money you will lose, so you should prioritise updating or renovating your space as quick as you can.
7. Rent or Sell?
Have you decided whether you are going to sell or rent out your property? If you have decided that you will be selling, it is important that all your renovation decisions are neutral, and timeless as to appeal to the masses. Additionally, you should try to create higher value at the lowest cost possible by planning cost-effective renovations.
