Jul 26, 2019
The mere thought of
investing in a property that is supposed to generate revenue might
not appeal to you. A renovation can be thought of a value addition.
All kinds of investments add value to your property, in a direct or
indirect manner.
So, when making an
investment in your property, the question you might ask is which
areas would best benefits from a renovation. Especially, if you
want a value addition to it. It makes perfect sense to
strategically spend some resources, since a spotless property would
be rather attractive for an interested party, and allows you to
charge a little extra for a more enhanced property.
Before you put money into
remodeling rental property, it’s a good idea to run the numbers.
Estimate the costs and the new rent amounts, and figure out how
long the payback period will be. Make sure you’re evaluating
whether you think the improvements are likely to last at least that
long.
Also, consider whether some
of the improvements might save you money in other ways. For
example, Upgrading your light fittings with
LED lights is also a cost-efficient way to amplify the appeal of
your house. Lighting fixtures also add to the decor of your
home. A
backsplash is a panel behind the sink/cooker to protect your walls
from splashes and from steam. This is possibly the most
cost-effective upgrade out there; it does not take much to get a
couple of good-looking tiles. There are also ways to fix these
tiles on your own; installing a backsplash is not much of a
challenge anyway.
Your doorknobs, handles or
cabinets might have aged and not function properly. You can be sure
that tenants who move in would notice. It would not be a satisfying
experience for them if they have to struggle with handles that fall
off, cabinets that get stuck in the track, or doors too stiff to
open. A few changes here and there would make a tremendous
difference in the long-term health of your property, and would even
retain your tenants for a longer period.
These are the most obvious
enhancements one could go in for, especially if one intends to put
their property up for rent. Subsequent expenses could be avoided.
You can expect few complaints from tenants.
To find out more on this
topic, Watch my Facebook live
video here.
Again, if you need my help
to scale your Real Estate portfolio and learn more from other like
minded people, join my program, 90 Days to $5K.