10 Essential Tips for Property Renovation
Renovation brings out a property’s true potential and helps your potential tenants to focus on its strengths. Turning over a property could bring in a generous return to fund a mortgage or even the purchase of another property.
If you’re renting out property, then you will have to keep it current and comfortable if you want to see a steady stream of rental income.
Granted, property renovation is a balancing act that’s easier said than done. That’s why we prepared this list of tips to help you successfully make updates that will boost your property’s appeal.
1. Don't overlook a bargain property
Are you starting from the ground up?
It’s easy to pass on purchasing an ‘eyesore’ of a property. But do try to look beyond any cosmetic flaws and easy repairs to see the true potential in a property. The better the deal, the more potential there is for seeing a large return.
2. Look at the market
Before you jump on that ideal property, you need to have a decent understanding of the local market. If you’re looking to sell after renovating, who in the market is likely to buy? If you want to rent it out, make sure that there is a high demand for rental properties in the area.
If the market for a property you already own isn’t doing much, then now may not be the best time to renovate.
3. Know the regulations and requirements in the area
It’s disappointing, to put it mildly, to have your renovation plans halted midway because of a regulation violation. Make sure you know exactly what is and isn’t allowed before you start demolishing or extending anything on the property. Of course, you also don’t want to put yourself at personal risk.
4. Design for the demographic, not yourself
Get to know what sort of people will be shopping in the market that includes your property. Families, university students, and older people all have very different needs. Keep these needs in mind when determining what changes you make to the property.
Seniors, for example, may prefer a very simple and compact layout while large families want lots of space with multiple bedrooms and bathrooms.
5. Play it safe with the decoration
Not everyone will feel the same way about the colour scheme you love!
Stick to very clean and neutral yet warm tones when painting. Allow for lots of natural light. Opt for polished wood floors over ornate carpets. Keep the grounds simply and neatly maintained.
This will help potential renters or buyers to see the property’s true character and appeal without being turned off by decoration they may find distasteful.
6. Add practical value
Always look for ways to improve and enhance without breaking your budget. Can you transform an existing laundry into a bathroom? Change out a window for another door? Put up an extra wall to divide one large bedroom into two? Try to anticipate features that will make the property more convenient and safe for potential renters and then make changes accordingly.
7. Budget carefully
Having a budget is absolutely critical when it comes to renovating. Even when you think you have plenty of funds, you’d be unpleasantly surprised at how many unexpected costs pop up. Maintain a tight budget with the goal of eventually seeing a return of twice or even three times as much as you spent.
Set aside a budget of emergency funds for some of those unplanned issues that arise.
8. Ask some old pros
Talk with those in the area who have recently completed a renovation of their own. Get suggestions for reliable tradesmen and features that increase property value in the current market. Ask about lessons learned and mistakes made in their renovating process.
9. Lock in the plans ASAP
You want to have your development applications approved and your plans and budget set in stone before you get started. Having to make changes along the way can be costly!
10. Economise cautiously
Look for a bargain wherever possible. Shop both in person and online. Offer cash and ask about deals and discounts. See how many small jobs you can do yourself.
A word of caution is in order, however. Don’t try to do too many DIY projects. Some tasks may not be safe if you don’t have the experience. Additionally, if you don’t do it right the first time, you may end up spending more down the line to make repairs.
Renovating your property for rent or sale can be an exciting and rewarding venture. But you need to be sure you’re in the right spot financially before you begin.
Looking to fund your next property or renovation project? Contact Funding Options for a free, no obligations discussion, and make sure you get the possible finance deal from the thousands of loan products on offer.
– Dom Cassisi, Managing Director