If you're investing in property, you
will usually choose to do one of two things: renovate the home to ensure a
quick, profitable sale, or carry out improvements to enter the rental market.
Both can provide exceptional returns, but in very different ways. You will also
need to consider your approach, including budget and level of finish to suit
your target market.
But why would you choose to renovate a
property specifically for the rental market?
Finding tenants for a property rather
than selling it outright can provide you with an ongoing source of income.
Whilst it will pose a number of unique challenges, it can be a hugely lucrative
and long-term investment.
However, in order to rent out a
property, you may first need to carry out some renovations. Whether these are
extensive or relatively minor will be entirely dependent on the state of the
house and the kind of occupants you're seeking. For example, a high-end luxury
apartment will have a much higher demand than an inner-city terrace house.
Whilst one will attract high-earning professionals, the other might be better
suited to students. So always renovate with your desired tenants in mind. However,
this doesn't explain why exactly you'd want to do this, so let's take a look at
some of the advantages of renovating and renting properties.
The biggest issue that any landlord faces is having their
property empty for extended periods. With no rent coming in, the cost of
maintaining the home is placed squarely on the owners. So you could end up
spending hundreds in utility bills, council tax and mortgage repayments without
any compensation. Therefore, having a presentable property that people will be
happy to move into is essential at all times.
Whether you're taking the property on as a new investment
or it has been a part of your portfolio for some years, there's a good chance
that some modernisation may be required. Sometimes, major refurbishments can be
restricted to an individual room or the part of the home that is most in need
of updating. However, if you are looking to maintain a cohesive theme and
ensure the same level of finish throughout, then sometimes it will prove to be
much more beneficial to do everything all at once.
As well as taking care of any styling issues, a
refurbishment can also provide you with an opportunity to carry out structural
changes. So if you want to create an open plan living area, put in an en-suite,
or even extend the property, this provides the perfect time to do so.
No two renovations are ever the same.
As mentioned earlier, landlords have to consider a number of factors, often
putting their own personal taste to one side. Therefore, it is vital that they
design and carry out work on an individual basis and with their income in mind.
After all, the more money you spend on buying and developing a property, the
more you need to recoup. If you can't achieve the rental price you're seeking,
then the overall investment will suffer. This is why it is so important to do
your sums beforehand.
Buying a house, renovating it and then
selling it again is often seen as the quicker and more effective way to build
up funds. However, if you have the capital to continue reinvesting, entering
the rental market can prove to be equally effective. Over time, the income will
pay off the mortgage and allow you to build equity in the properties, ensuring
a healthy profit if you ever come to sell it in the future.
In the meantime though, you need to
make sure that your property offers potential tenants everything that they're
looking for. This means meeting and even exceeding the expectations of your
target market. This can be achieved through a well-planned and effectively
budgeted renovation project.
Get Free Quotes From Selangor Top Home Renovation Companies…Call 012-2988560.
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