How to renovate property for profit
Here are our 6 top tips for Rental Property Refurbishment and maintenance that will help you make a profit when selling your home.
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If you are planning major redevelopments, make sure that you have the finances in place to cover the entire works.
Include a decent sized contingency fund in case things don’t go entirely as expected. A property that is stuck at the halfway point of property refurbishment is likely to be worth less than you originally paid for it!
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Buy the property as cheap as possible and cut costs as much as you can when carrying out the works.
Doing the work yourself and saving the cost of expensive tradesmen will enhance your profit margin, but remember all works must be completed to a good standard. If you do not have the property maintenance skills to complete the job, it is better to employ someone in the first place, rather than having to pay someone to rectify any mistakes you may make.
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Don’t take on a property refurbishment project that you can’t handle.
If you are new to the world of property maintenance it’s best to start with less challenging properties. Ideally, properties that just need decorative work are the best starting point. This type of property puts off the majority of buyers as they are ugly, by today’s standards, and most people are looking for a property they can move into straight away. As you get more experienced in renovating property you can take on houses with more work needed and potentially make bigger profits.
How to successfully manage my property?
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The best way to add value to a property is to add square footage.
Extending a property, when done right, will automatically boost its value. It is important to thoroughly research how much it will cost and how much value it will add to the property first, to ensure that it is a viable option. You don’t want to spend £30,000 adding a bedroom only to find out that it only adds £20,000 to the value. You also need to make sure that it will appeal to its target market. For example, dramatically increasing the number of bedrooms, but not living space is a bad idea as not many families will want a 5-bed house with only one reception room unless it is priced cheaply.
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Always keep in mind the end goal: selling the property to make a profit.
It is very easy to get too attached to the project and fit it out with fixtures and fittings that are to your own taste. It is important to remember that a neutral theme will always sell better at the end of the process and it is not worth paying more for a kitchen because it is the one you would want. If you fall foul of this trap you will be lucky to recoup the money you put into the project, let alone make a profit. Do you know the rules of becoming a landlord?
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If you want to rent the property out instead, think about the on-going property maintenance that may be required.
It could well be worth refurbishing the property with more hardwearing materials in the first place, as you will only incur extra costs to replace worn or broken items in the future. A good hardwearing carpet and durable paint are worth paying that little bit extra for, as it will reduce the cost of the on-going property maintenance required.
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Whatever your reasons for refurbishing a property, it is always important to decide on a budget and then stick to it.
Keep track of your outgoings and keep an eye on the housing market to ensure that you do not lose money, as so many new property developers do. Property refurbishment can be a very stressful and costly process and you need to make sure it is going to be worth your while.
West London Property Networking
Please contact Pelin Martin to book a 30-minute free property consultation on
+0208 994 7327
pm@bluecrystallondon.co.uk
