Real estate comes with a lot of competition, so your property has to stand out. To do that, you’ll need to wow your potential tenants with a newly renovated property that has everything they’d ever want and need. In this post, you’ll find our 8 top tips on how to conduct a rental renovation, and why you should hire a property management company to help you with it.
Don’t overdo it
Take a look at comparable properties in the area where your rental is located. What do they look like? How many bedrooms do they have? How big are their garages? Are there other rentals that have been recently renovated? If so, which parts of the property did the owner focus on? This should give you a good idea of what to do with your rental. That way, you won’t end up over-improving your property and spending way too much on things that your market doesn’t want.
For example, why turn your rental into a French country home when all of the properties in the area are in mid-century modern architecture? If you do that, your rental is sure to stick out – and not in a good way. Remember, no tenant would want to live in a home that the whole neighborhood will be talking about. If you decided to sell your property down the line, you’ll struggle to do so since it’s too distinct. Chances are, you’ll have to sell it at a lower price, which means you won’t recover your renovation costs.
Ask yourself if it adds value
Even if you’ve always wanted your rental to have a pool, ask yourself if it will add value to the property first (spoiler alert, it doesn’t). Ultimately, the best renovations should be ones that boost your real estate investment’s value. They should also translate into return on investment (ROI) in the form of rental payments (you’ll be able to raise your rent due to property improvements) and resale value.
It helps to partner with a South Florida property management company that can point you in the right direction. They’ll know what will pay off and what won’t. For instance, they know that renovating the kitchen should be at the top of your list, while walk-in closets are a bad idea.
Repair what you can
Why waste your money by replacing something that can be repaired? When planning your rental renovation with a property management company, it’s important to identify the items that can be fixed. For example, instead of installing new cabinets, you could give your existing kitchen cabinets a facelift. Or, you could try to get your air conditioning unit repaired rather than throwing it away and buying a brand-new one. Similarly, if your counter’s surface looks scratched, replace only the countertops but keep the base. There are plenty of ways to improve your property’s appearance without having to do a full-on renovation.
This, of course, only applies if you’ve properly maintained your property. With that said, always aim to prevent damage so you don’t have to deal with it down the road. A property management company can conduct regular inspections to maintain your rental’s condition, saving you time and money.
Source before you buy
Your contractor will likely take care of everything for you, but if you want to be a bit hands-on, you can choose which things to buy, such as toilets, sinks, and so on. However, be sure to consider all of your options before you buy stuff. For example, let’s say you need to replace the tiles. Instead of going for the first tiles you find, set aside the time to compare prices with various stores. You’ll find that certain materials are cheaper in some stores or sites. Many home improvement stores also have time-limited deals, too.
If you’d like your contractor to take charge but you’re worried they might buy pricey materials, just make sure to partner with a property management company. They’ll work with reputable contractors who’ll stay within your budget and put your best interests first.
Buying cheap materials might save you more money, but it also means compromising longevity. It’s always a good idea to go for hard-wearing things instead. Sure, the cost is more, but it will be cheaper for you in the long term. When you renovate your rental using materials that can withstand wear and tear, you won’t have to worry about them breaking down any time soon. Investing in strong materials also means you won’t have to conduct repairs in between tenancies, allowing you to move in your new tenants immediately.
Get a headstart
A rental that’s under renovation is a rental that isn’t making money, so try to keep the time you spend on renovations to a minimum. You’ll have to plan in advance – that way, you can immediately start your renovation once your tenant moves out. Book contractors, buy tools and materials, and sort out the rest of the details before the property becomes empty. You could even ask your tenant if you can start renovating while they’re still living in the rental – as soon as you don’t disrupt their day-to-day life, of course.
Stick to a budget
Even if your rental made an impressive amount of money, that isn’t a reason to go all-out with your renovation. It can be tempting to buy the most expensive items, but remind yourself that you’re running a rental business – and being a “businessman” in real estate means making smart decisions.
To resist the urge to go all-out on upgrades, set a budget. This will allow you to clearly see how much you can (and should) realistically spend. If this is your first time setting a rental renovation budget, consider consulting a local contractor or property management agent.
Finally, hire a property management firm in South Florida
Renovating a rental property is a huge undertaking. That’s why many property owners opt to work with property management companies to make sure everything goes according to plan. These companies are also familiar with local labor costs, material costs, etc., and are available at all times in case they have to visit your lot. At Luxury Property Care, we even provide contractor waiting services so you don’t have to take time out of your day to relay your instructions to your contractors.
If you’re looking for a South Florida property management company to help you with your rental renovation, get in touch with us at (561) 944 – 2992 or fill out our contact form. Aside from overseeing your renovation, we also provide full-service property management to preserve your investment.