Investing in strategic renovations for your rental property can boost its appeal to prospective tenants, provide the current tenants with a better experience, and ultimately enable you to charge more for the property.
In addition to increasing your rental income in the short term, making renovations can also increase the long-term value of your investment property. If you plan to sell the property in the future, making regular improvements could help you to fetch a higher sale price later on down the line.
Rental properties that are maintained to a high standard are also more in demand, especially with the generation of students now seeking chic, modern private rentals, thus making it easier for landlords to find tenants and reducing the length of time that the property is empty.
If your rental property is modern, well looked after, and designed to make the best use of space, it reflects positively on yourself as the landlord. Looking after your property and making the necessary renovations to improve it shows that you care about the property’s condition and the tenants that you rent to.
What landlords should consider before renovating their rental property?
Whilst we highly recommend renovating your rental property to a good standard, we can’t stress enough the importance of doing your research and planning before you dive in, or alternatively contact our office to seek advice and an honest opinion of what we deem to be a smart renovation for your property.
Make sure that the renovations you’re considering implementing, are smart ones that you’re confident will add value for your tenants now as well as adding value to the property later down the line if you were to sell it.
When deciding the type of renovation that would offer you the best return on investment, the type of tenant you rent to should heavily influence your decision. Consider who it is that you usually rent to and the type of renovation that would make the most difference to their quality of life. Different types of tenants have different needs. If you manage a student HMO or any student home where multiple people are living under one roof and sharing a bathroom, then adding additional bathrooms, shower rooms, or en-suites may be a more profitable investment.
Your budget is another important factor to consider when planning a renovation. It’s easy to get carried away with renovations, so it’s important to set a budget and stick to it.
Finally, consider the logistics of a renovation. If the work is likely to be very messy or disruptive, then it may not be possible to complete it at a time when tenants are living in the property. In this case, you’ll want to plan things carefully to get the work completed in as short a timeframe as possible to reduce your financial losses. With student properties and tenancy agreements usually ending at the end of June, we always recommend having the work planned for the day after the tenants move out, in order to be completed in time for the new tenants to move in, in August/ September.
Here are 10 renovation ideas we’ve put together to maximize your rental property’s value:
1. Upgrade the kitchen: The kitchen is often the focal point of a home and upgrading it can add substantial value. Installing new appliances, countertops, cabinets, and flooring can transform the space and enhance its functionality.
2. Update the bathroom: A modern and inviting bathroom can make renting your property more appealing to prospective tenants. Consider adding new tiles, fixtures, and lighting to create a clean, fresh look.
3. Give the walls a fresh coat of paint: A fresh coat of paint can cover up any scuff marks or chips on the walls and give the property a clean and updated look. Choose neutral colors that are easy to match with any tenant’s decor.
4. Improve the exterior of the property: The exterior of the rental property is the first thing potential tenants see, so it’s important to create a good first impression. Landscaping, painting the front door, and repairing any cracks in the driveway or sidewalks can improve the property’s curb appeal. Outdoor spaces are highly sought-after by renters, especially during the warmer months. Adding a deck or patio can provide an enjoyable place for tenants to relax and entertain.
5. Install new flooring: Replacing old, worn-out flooring can make a big difference in the look and feel of a rental property. Consider installing hardwood, laminate, or tile flooring for a durable and long-lasting option.
6. Add storage space: Tenants always appreciate adequate storage space, so consider adding built-in shelves or closets to increase storage options.
7. Upgrade lighting: Good lighting can make a rental property appear brighter, more inviting, and more spacious. Swapping out outdated light fixtures for modern ones can also update the property’s overall design.
8. Extend the property: Probably the most expensive renovation on the list! Whilst it’s a pricey one, this is an investment that can add significant value to your property both now and in the future. Extending the kitchen, adding an extra bedroom, a second bathroom or an en-suite can all provide the additional space and comfort that many renters are looking for.
9. Replace old windows: Old, drafty windows can reduce energy efficiency and drive-up utility bills. Replacing them with new, energy-efficient windows can improve the property’s value and save tenants money on their energy bills.
10. Install smart home features: Adding smart home features like smart thermostats, doorbells, and lighting can attract tech-savvy tenants and increase the property’s appeal. These features can also help tenants save money on utilities and increase the security of the property.