PROPERTYSPARK ARTICLE

5 Things to Prioritise During Investment Property Renovations

When investing in real estate properties, it is important to know how to enhance the value of your chosen investment. One of the best ways of guaranteeing the best potential value for the property is through renovations. If you have chosen this path, making strategic decisions can go far in maximising your return on investment (ROI) and bringing a sense of pride for your accomplishments. In this blog post, we’ll discuss five critical things to prioritise during investment property renovations to give you a foundation from which to make your own plan.

Budgeting and Planning

Before you start tearing down walls or picking out paint colours, the first thing you should look into for renovation is budgeting and planning. Having a well-thought-out renovation plan can save you time, money, and headaches in the long run, so be sure to take a moment to think and create a timeline of actions.

Here’s what you should consider before renovating:

• Set a Realistic Budget: Knowing how much you’re willing to invest in the renovation can give you an idea of what projects and materials are within your budget. Said budget should include not only the cost of materials and labour, but also a contingency fund for unexpected expenses in order to keep you in the green throughout the renovation process and beyond.
• Identify Your Goals: Clearly defining your renovation goals can help you not buy unnecessary materials, but even target projects you think will boost value. It is important to consider whether you’re looking to increase rental income, attract higher-paying tenants, or boost the property’s resale value. These goals will influence the scope of the renovations and guide your journey.
• Create a Timeline: Knowing how much you’re willing to invest in the renovation can give you an idea of what projects and materials are within your budget. Said budget should include not only the cost of materials and labour, but also a contingency fund for unexpected expenses in order to keep you in the green throughout the renovation process and beyond.
• Consult Professionals: If you’re not experienced in property renovations, it’s a good idea to consult with professionals such as contractors, architects, or interior designers. They can provide valuable insights and help you avoid costly mistakes before you even start swinging a hammer.

Curb Appeal

The first impression of your investment property, otherwise known as it’s curb appeal, matters a great deal when it comes to potential buyers. This visual attractiveness of the property from the outside can significantly impact its value and marketability, whether it’s in a positive or negative manner. Here are some curb appeal enhancements to prioritise when looking to renovate:

• Landscaping: A well-maintained garden or yard can instantly elevate the property’s appearance, especially if there is ample space in the front. Consider planting low-maintenance shrubs, adding colourful flowers, and ensuring the lawn is neatly trimmed on a regular basis.
• Exterior Painting: A fresh coat of paint can do wonders for the property’s exterior, especially if you’re tackling a bit of a fixer-upper. Choose a colour scheme that complements the neighbourhood and adds to the property’s appeal, or go left-field and target a specific demographic or styling.
• Front Entry: The front door and entryway are focal points to your home and should be treated with respect. Invest in a quality front door, update hardware, and consider adding attractive lighting fixtures to draw people in.
• Cleanliness: Simple cleanliness can help enhance your property’s value by a great deal. You can do this by removing debris, pressure washing the exterior, cleaning windows, and brightening up the space with decorations.

Kitchen and Bathroom Upgrades

Potential tenants or buyers often pay the most attention to the heart of a home: the kitchen and bathrooms. Their evaluation of these spaces can make or break the chance of an offer, so it’s vital to look into upgrading them when renovating. You can do this by focusing on elements such as:

• Countertops and Cabinets: Upgrading a kitchen’s countertops and cabinents to more durable and modern materials can provide the space with a fresh look. While you are your own design, it’s just as important to stay ahead in the kitchen trendskitchen trends game by looking into future design choices and styles. Having such foresight will guarantee a home’s popularity.
• Appliances: Modern, energy-efficient appliances in any home’s spaces not only improve functionality but also attract tenants and buyers. Stainless steel appliances are a popular choice in the current market.
• Fixtures: Replace outdated faucets, sinks, and lighting fixtures with modern, stylish options if you think the room looks tired or worn. Such a relatively small investment can make a surprisingly big difference.
• Flooring: In kitchens and bathrooms, waterproof or water-resistant flooring is a practical choice, but ensuring they look luxurious can help boost interest. Options like tile or sturdy hardwood floors can withstand moisture and frequent use, while still looking modern and fresh.

Energy Efficiency

In today’s environmentally conscious world, energy-efficient features are highly desirableenergy-efficient features are highly desirable, especially since they can save you money in the long term. Prioritising energy efficient appliances in your renovation can attract tenants willing to pay a premium for reduced utility bills. Here are some energy-efficient upgrades to consider:

• Windows and Insulation: Replacing old windows with energy-efficient models and improving insulation can enhance the property’s energy performance. Proper insulation keeps the property cooler in summer and warmer in winter; no need to run up temperature costs.
• HVAC Systems: Installing or upgrading your current heating, ventilation, and air conditioning (HVAC) systems to energy-efficient models will be appreciated by future homeowners or tenants. Consider programmable thermostats to allow for temperature control and energy savings, and low-energy appliances.
• Lighting: Replace traditional incandescent bulbs with energy-efficient LED or CFL bulbs to reduce electricity usage. You can also install motion-activated lighting in common areas to help in these efforts.
• Water Fixtures: Install low-flow faucets and showerheads in all relevant rooms to conserve water. Water-saving fixtures are not only eco-friendly but also cost-effective.

Maintenance and Safety

Investment properties, especially older ones, often require maintenance and safety upgrades. Neglecting these essential aspects can lead to costly problems down the line and may even put occupants at risk. That’s why it is best to look into the following features:

• Roof and Gutters: Ensuring the roof of a property is in good condition and free of leaks is essential for home maintenance. While there, working to clean and repair gutters can aid in the prevention of water damage.
• Electrical and Plumbing: Address any electrical issues, such as outdated wiring or malfunctioning outlets as soon as possible for both safety and convenience. Make sure all appliances are running efficiently, which may require actions such as repairing your air conditioning system or ensuring there is available internet access. Similarly, fix plumbing problems like leaks, clogs, or outdated pipes to keep a smoothly-running home.
• Safety Measures: Every home needs sufficient safety measures, which is why it’s best to ensure there are smoke detectors, carbon monoxide detectors, and fire extinguishers in a home, installed per local safety regulations. You may also want to consider adding security features such as deadbolt locks or a security system if you think it’s necessary or may attract more viewers.
• Accessibility: If your property is intended for long-term rentals or resale to a diverse demographic, consider making it more accessible. This could involve adding ramps or handrails for elderly or disabled tenants. Such efforts indicate you are a homeowner that is invested in the well-being of future inhabitants.

In conclusion, prioritising these five key aspects during investment property renovations—budgeting and planning, curb appeal, kitchen and bathroom upgrades, energy efficiency, and maintenance and safety—can help you maximise the value of your investment, attract quality tenants or buyers, and secure a strong return on investment. By making informed decisions and focusing on these essential elements, you can position your investment property for success in the competitive real estate market.