Whether your property is looking a bit dated, or you just want to yield a higher return, renovating your rental property might be a great option. For many rental owners, this is often the case, but there are some important considerations to be made before you get started.
1. Will it actually increase your return?
This is the big question when it comes to rental property renovations. Before you get carried away, it’s important to know that what you put in, you’re going to get out (and hopefully more!). Renovations aren’t cheap, and you don’t want to be overcapitalising.
2. So then how much should you be spending?
If you’ve done your research and you know that you have a good chance of increasing your rental yield with a renovation, then make sure that you’re maximising your budget. You don’t need to replace everything in the house – things like adding a fresh coat of paint and replacing dated door handles or light fixtures might be a good way to go.
3. What areas should you be focusing on?
If you really want to make some changes, you should focus your renovations on the areas that get the most use, like the kitchen and the bathroom. Don’t skimp on materials here if possible, and make sure the plumbing is all up to code with the experts so you don’t have any costly surprises later on down the track.
4. If you were a buyer or renter, what would you look for?
There may come a time when you’ll want to sell your rental property (it might even be why you’re renovating now), and you’ll need to look at it with an objective lens. If you were to buy this property now, what would you be scrutinising? Where would you see more work that needed to be done? Is there anything that would make you decrease your offer?
If you’re looking to sell your rental property and purchase a new one, or you just want to maximise your rental yield, the experts here at Haven can help. Get in touch with us today!
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