Jacksonville Property Management Blog
Pros and Cons of Renovating a Rental Property
A rental property goes through the same wear and tear process as your home, yet maintaining it requires more thought and care. Many landlords are not sure what the projects bring ROI and what ones they should skip when renovating their rentals. That's why you should give it some thought before your roll up your sleeves. To help you out, we've gathered a list of all the pros and cons of renovating a rental property you should consider and then make the right decision.
Let's start this guide on a positive note for landlords. There are several reasons why renovating a rental property is a great idea and helps you maximize the ROI as much as possible.
Increasing your rent price is one of the first things you can count on after renovation. When picking a new home, renters know that prices can vary depending on several factors, such as the property's location, size, and, finally, condition. A newly renovated home will undoubtedly cost more, so you can expect that even the most minor project can bring a rental price increase. Finally, when there's more money circling, you are building equity faster, which can only bring positive points to your investment plans.
It's challenging to find a great home to rent, but at the same time, landlords are struggling to find reliable tenants. A renovated, polished apartment will surely attract more responsible tenants willing to pay more to have a nicer home. The property that has been recently spruced up comes with a dose of responsibility for tenants to keep it that way. So, if you're struggling to find people who will stay longer and truly enjoy their home, renovating is one way to do it.
No landlord likes when their rental is vacant. That's why you should do your best to make your property as attractive as possible. This way, even when a renter leaves it, there won't be long until a new one comes along. Properties in good condition have minimum void periods, another advantage of renovating your rental property.
Specific renovation projects can make your property more energy-efficient, leading to multiple benefits. Firstly, you can reduce bills if you renovate the property and ensure it spends less energy. Next, you can attract high-quality tenants this way – those who care about their home and how they spend money. Finally, you'll make your property more environmentally friendly and ensure that people who rent it are eco-conscious.
Surely, nothing is black and white in real estate. Every project or action has a negative side, so you can expect the same with renovating a rental. You need to consider a couple of downsides before you begin a project to ensure you're doing the right thing.
Even if you plan the renovation to detail, unexpected costs can happen anytime. Renovations are quite unpredictable, and certain projects can entail other work that will cost you more than you predicted. However, you shouldn't be afraid of such things. Manage your renovation budget carefully, and prepare for about 15 percent of extra costs. If you're ready for the process, you can't be surprised a lot, which will make the process a lot easier.
Also, unpredicted costs can include damage that can happen to the items you have on the property. That's why removing all the furniture pieces and other objects away from the construction site is safer. However, consider all the pitfalls to avoid when renting a storage unit to make sure you get the safest and most cost-efficient solution for your renovation process.
Finances are not the only reason why the unpredictability of renovations is considered a downside. These projects can be time-consuming, which is bad news for people who have work or a big family to deal with. However, these projects pay off, so if you plan them right and work with professionals only. This way, you can reduce complications to a minimum and don't spend too much time.
And remember always to hire only reliable experts for your renovation and moving. Pros from müv | Trusted Florida Movers always advise you to research the people you trust in your home. This ensures the work is done fast and increases the security and quality of services you need.
When you decide to renovate a property, you'll probably choose to do that when there are no renters. With common complications that renovation projects can include, the renters-free period can be longer than you expected. This means there's no rental income, right? To make this as efficient as possible, be sure to plan large-scale projects to detail and leave nothing to chance. And if you need to do a smaller project around the property, there's a chance to do it while tenants are at your property. However, this doesn't need to be the reason you give up on renovation, especially if the property needs a bit of revamping.
Making a final decision when renovating a rental property depends on several factors. Firstly, consider all the pros and cons we mentioned in this guide. These should be your starting point when planning to spruce up your rental. Next, consider the condition of the property, your current tenant situation, and finally – your budget. Once you list all the circumstances and factors that affect your decision, you'll be able to determine if now is the best time to make your rental shine again. If that's not the case, be sure to start making plans for future renovations and make it easier when the time comes to begin a project.
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