Major renovation ideas for your Investment Property - Feature 2

A well maintained investment property is the best way to maximise your return. Knowing how to renovate your property is an essential part of being an investor.

Here are some tips for when you need to do major renovation work.

Before you start

The key to a good renovation is understanding the target market. Talkto estate agents in the area to find outwhat tenants want and you can renovate accordingly.

Have the property valued and research what it might be valued after a renovation. This will give you an idea of what you can spend to avoid over-capitalising, which is when the cost of the renovations outweighs the value they will add to the property.

Where to renovate

Whilst you should look at your individual property overall, kitchens and bathroom renovations generally give a higher return on investments and make the biggest impact.

Kitchen and bathroom

A well thought out kitchen and bathroom renovation will increase the value of the property and your rental potential. It will also help attract quality tenants.

It may be you can get away with a simple facelift if your kitchen or bathroom is currently well-equipped. A resurface,change of fittings, new appliances, repairs, replacement handles and a good re-paint may be all that is required to brighten up and modernise the space.

But if the rooms are out of date and lack functionality then you may need a complete remodel. It may be the bathroom is in better condition than the kitchen or vice versa in which case you may need to remodel just one.

If you do a complete renovation hire professionals to do the job as they will bequicker and the finish will be superior. Thisis not the time to try DIY.

When selecting fittings think low to mid-range. Don’t go so budget that you will have to replace things sooner, but forget luxury items. You can give tenants a clean, modern space without blowing out the budget.

Other Areas

Attracting and keeping quality tenants is often as important as rental income. The greater the turnover of tenants, the more potential for damage and financial loss.

So think about what tenants want and what they will pay more for. Air conditioning is not the luxury it once was and many tenants see it as a must.

Consider security and install screens, security doors and locks. Modern day living means being wired up. Think about remote garages, Foxtel and phone wiring.

Mistakes to avoid

Don’t under-renovate. Just renovating one room can highlight how terrible the rest of the property is. If you have limited funds ensure the property appears more appealing overall.

Keep an eye on the budget. There isa fine line between making your propertymore desirable and over-capitalising. Make sure you don’t cross it.

If you have more than one investment property think about bulk purchasing. Many investors choose the exact same colour scheme and fittings for every property. It means savings in time and money.

Renovating an investment property can seem daunting, but done correctly it will make a huge difference to your rental income and the value of your investment.