Increase your property's value with minor renovations
One of the benefits of buying older units and renovating them is that the older units are often more spacious, and you can buy them at a much lower price. Some people might say that renovating is very expensive, but it doesn’t have to cost you an arm and a leg. I regularly do minor renovations on my units and here’s why:
- It is a great mechanism to increase the value or perceived value of my property.
- If a property looks good, you can increase the rent that you charge.
- It is also a fantastic way to decrease the vacancy of a unit, i.e. sourcing a tenant faster and having fewer months where the property will be vacant.
When is the best time to renovate? I usually make use of the opportunity to renovate my units when one tenant is moving out and before the next tenant moves in. My rule of thumb is to use one month of rent EVERY year on minor renovations and repairs.
5 CHEAPER WAYS TO IMPROVE YOUR PROPERTY (in order of priority)
1. Replace the cupboard and door handles with modern handles.
2. Change the electrical sockets and light switches with modern ones.
3. Modernise the light fittings.
4. Put a nicer toilet seat on the toilet.
5. Add modern towel railings or a basin cupboard to the bathroom.
5 MEDIUM BUDGET WAYS TO IMPROVE YOUR PROPERTY (in order of priority)
1. Repaint the inside of the unit with modern colours.
2. Replace carpets with tiles (tiles work better for a unit you are renting out).
3. Upgrade the cupboards in the kitchen (try using the existing structure and only replacing the front cupboard doors).
4. Put in a granite kitchen top.
5. Modernise the basins and taps in the bathroom.
Also, keep in mind that fibre is a basic need these days, so make sure to install a fibre point in your unit. This can often be done at no cost or a very low cost. Moral of the story? Get renovating and watch the money roll in!
