Renovating an investment property is different than renovating a property that you plan to use as your residence. When you’re making updates to a property that you’ll either sell or rent out to tenants, it’s important to look at what features will be most appealing to someone taking a walk through the space. Use these tips as you go through the renovation process of your luxury investment property.
Establish a Realistic Budget
Before you get started, the first step is to establish a budget that is realistic and affordable for you. You don’t want to go too cheap on the materials you select for the upgrades, but you also don’t need to spend a fortune on the best options money can buy. This is especially true with properties that will be rented out, as tenants don’t typically treat real estate with the same care as the owner of a property would. If you plan to sell the property, look at its potential value and keep your budget within 10 percent of that amount.
As you’re creating a budget, make sure to include everything that will be involved in the renovation. If you plan to upgrade the kitchen, don’t forget about the cabinets and appliances. With a bathroom renovation, you might want to think about replacing fixtures that look dated. These seemingly small extras can quickly add up and cause you to go over budget.
Have the Right Tools and Equipment
If you plan to do any of the work yourself, you need the right tools and equipment to tackle tasks more efficiently. Some of the most important tools for your renovation include a measuring tape, an electric drill (preferably cordless), a ladder, a sledgehammer, a stud finder, and personal protective equipment to keep you safe. You’ll also need items to keep the job site clean, such as tarps, a wet/dry vacuum, and a broom. Don’t forget about a pair of durable work boots that will protect your feet if you step on something sharp.
Focus on High-Value Rooms
When potential buyers or tenants walk through the property, they are likely to focus on the most valuable rooms, which are the kitchen and the bathrooms. Although most people spend a lot of time in their bedrooms and living spaces, the kitchen and bathrooms are what will sell the home or get it rented out quickly. Focus your budget on these rooms that will deliver the most bang for your buck. If your budget doesn’t allow for a full renovation, even making some cosmetic upgrades to these areas will help.
Know What Your Target Market Wants
It’s important to identify your target market and figure out exactly what those people want from a property. For example, if you’re marketing the home as a family-friendly abode, make sure at least one of the bathrooms has a bathtub for bathing small children. If the investment property will be a high-end, luxury retreat, don’t skimp on the materials.
With the right tools, a clear budget, and a sense of what your target market wants, your investment property can offer a big payout. Use these tips to make your next renovation project more successful.