Following the recent turn of events in 2016 landlords now find themselves in the position of having to review their portfolios to find ways to protect their profits. Some landlords may be selling off unprofitable properties, while others will be incorporating their portfolio, or extending and refurbishing to enhance rental income.
Carrying out refurbishments to your rental property which uses the space creatively can present opportunities to raise the capital value and rental value of a property.
Refurbishment not only increases the value of the investment, but it also cuts down on long-term maintenance costs and attracts higher quality tenants who tend to stay put for longer.
When carrying out refurbishments here are some pointers to consider:
- Think about your target market. Build or renovate with them in mind. Examples being if you are aiming for young professionals you will need a good, clean, high standard. If the property is in a family orientated area it may be worth focusing on the garden areas a little more.
- A blank canvas is always best – white, clean and modern is the way forward.
- The kitchen and living areas are the most important rooms. Focus most of your energy on these.
- The property must have kerb appeal. Make sure that the front door and exterior look clean and smart.
- A dark property is a bad property. If in any doubt, paint the walls white and add lights!
- Consider whether you can take out a kitchen if it is in a separate room. You may be able to create a combined kitchen/living area and gain an extra bedroom. Can you get in the basement and create living space there? Can you go into the roof and create space there? Always think about gaining any unused space or better using existing space and always think ‘clean and fresh’
- Most importantly – Don’t overspend.
