The condition of a property can be the determining factor that impacts it’s rentability.
If you have a home that is outdated, run down, or simply could do with a few modern fittings, then a renovation might be exactly what you need.
Since pattern has proven that the value of property goes up gradually, as time passes, owners usually renovate their property and rent it for a worthwhile monthly revenue. In this article, we have explored our top five renovation tips to consider for your investment property to boost it’s value.
#1 Take another look at your property and create a budget
As tempting as it may be to get that Pinterest board ready and to get carried away with the latest design trends that sweep your Instagram feed, it is important you remember to set you budget. Keep an Excel spreadsheet of maximum spending allowance for painting, flooring, appliances, lighting, fittings and any technological enhancements. Then you can start sourcing quotes from suppliers who match your budget allowance. Our top tip is to have room for a 10% contingency, that way if things overrun your budget you aren’t stretched.
#2 3 Set realistic timeframes
Unfortunately in today’s building industry, delays are the norm. You need to accommodate for this with your planning. Have a timeline in mind, but add a buffer to accomodate for the unforeseen. Consider all the materials you have on hand, all the materials you will need to acquire, what tradespeople you will need in your corner and how soon they can get to site and begin working. When you start sourcing your quotes, be sure to ask the supplier about their timeframes. This should give you a rough idea.
#3 Get a professional to step in when you need
Sometimes, you can save some time and money if you have a friend, neighbour or family member who is skilled in a particular trade. However, if you or your loved ones lack the necessary skills to get the job done, then you may end up spending more money with your DIY attempt at renovations. When in doubt it can be worth it’s weight in gold to seek the assistance of professionals.
#4 Have a vision before you start
Before you get the project underway, map out a crystal clear vision of what the end result will look like. Keep inspiration around you, and don’t forget what your goal is. Have that Pinterest board, real estate listing, display home images or Instagram pages ready to refer back to.
#5 Consider your target market
What area is your property in? Is the home near Murdoch University or UWA? Perhaps your property is situated in Applecross or South Fremantle. Every location will entail a different cross section of possible tenants. Whether you are likely to have a suite of university students renting your home, or a young family who are eager to get into excellent catchment zones, the sort of tenant you would be attracting could be vastly different based on location. Your renovations should consider this as this will make your home more attractive for your prospective tenant. A few renovations to consider could be having softer curved edges around the house to avoid hazards for families with small children, or to modify bathrooms for the elderly if the demographic of the suburb is more senior.
Remember, a successful investment property renovation can help you achieve a better rental yield and you could also end up having better quality tenants in the long run. Knowing exactly how to invest your money when it comes to your renovation can help you maximise your returns and to help achieve your long-term wealth goals. If you need more guidance or if you would like to find out more ways to elevate your investment property in Perth, then we invite you to speak to our team right away. Our real estate agents can help you get the best value out of your investment property.
