As a landlord, renovating your rental portfolio is a strategic investment with a clear objective: improving your property’s functionality and aesthetic appeal to attract tenants and maximise your return on investment.
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It’s crucial to prioritise the various aspects of your refurbishment, focusing on the most important upgrades, to avoid overspending and make the most of your property. Certain renovation upgrades typically provide the highest rental property ROI and will ensure your money is well spent.
Always take into account the type of tenants you’re aiming to attract: preferences vary by demographics, such as families wanting storage space, students preferring affordability, and professionals looking for modern finishes.
Safety first
Before considering the layout, aesthetics or general appeal of your buy-to-let home, make sure it meets all health, safety, and building regulation requirements. Whether you’re a seasoned landlord carrying out a refurbishment between tenants, or new to the market and renting out for the first time; non-compliance with the law not only risks occupant safety, but it could also lead to insurance issues and legal consequences.
The key areas when considering renovation plans should be updating any outdated electrical and plumbing systems including checking pipes and wiring; and making sure gas appliances, such as the boiler, are working as they should. Ensure smoke and carbon monoxide detectors are installed in the relevant places and fully operational, according to legal requirements. Check the property for any signs of leaks or water damage, such as damp patches on the walls, or gutter and roof problems. These should be your priority over everything else, to protect your tenants and your investment.
Don’t overspend
Landlords often overspend on items such as luxury appliances, bespoke features and expensive landscaping that don’t increase the rent enough to justify the costs. Upgrades that truly add value can be relatively simple and inexpensive such as a fresh coat of paint, durable flooring and smart furnishings.
In every rental property, wear and tear is a given and there’s little you can do about the general deterioration of fittings and fixtures due to regular use. However, you can choose materials that balance cost, durability, and appearance to create a great look at a relatively low price.
Popular choices for flooring include vinyl, laminate, or tiles rather than hardwood or carpet, as they provide easy-clean, scratch-resistant and long-lasting surfaces. When it comes to paint, opt for neutral colours with satin or silk finishes that can be cleaned easily, will suit most people and aren’t simply a trend that will look dated after a relatively short time.
For fixtures, it can be beneficial to choose stainless-steel or brushed nickel finishes, as they are less prone to fingerprint marks and corrosion. In all cases, consider longevity, choosing materials that require minimal upkeep and can handle frequent use.
Professional furnishing services
Many owners choose to use professional suppliers of landlord furniture packages to furnish their portfolio, as this saves time, reduces voids and helps achieve higher rents with stylish, ready-to-move-in setups. The key is to balance aesthetic upgrades with functionality and maintenance needs in renovation planning.
Kitchens and bathrooms
Aim for a clean, neutral and modern look in both the kitchen and bathroom, remembering to favour functionality over luxury.
Kitchens and bathrooms are high-impact living spaces that are among the most scrutinised by prospective tenants. After all, they are essential for day-to-day life and can massively impact living conditions if they’re not up to scratch.
Research shows a dated kitchen can be a deal breaker for many prospective renters, not only from a functionality and aesthetics perspective, but also in terms of energy efficiency. When you’re planning a renovation, update your appliances to mid-range, energy-efficient models to achieve the best ROI.
Nothing looks worse in the bathroom than old tiles that have cracks or missing grout, toilets with yellowing enamel and taps that look worn. After all, a bathroom is a place of hygiene, so no tenants want to be reminded someone else was there before them. It’s not a huge task to re-grout or replace old tiles, fit a new toilet and replace taps with modern and clean alternatives. Install good ventilation, such as an electric fan, to prevent damp and mould.
Most rental properties don’t require high-end finishes and bespoke luxury features. Tenants tend to value a practical and well-maintained home with a fair rent over a property with luxury upgrades they don’t own and the higher rental costs that go with them.
Practical additions
You can never have too much storage space, so upgrading wardrobes and cupboards is often a good option, particularly if you’re refurbishing an HMO with furniture that needs to be both functional and long lasting. Again, a suitable landlord furniture pack can fit the bill. Ensure there’s adequate lighting and accessible power outlets in every room, and that the property has efficient heating and cooling systems.
Laundry facilities are also a plus when it comes to attracting tenants, whether it’s an energy saving washing machine in a family kitchen, or a shared laundry room in an HMO or student accommodation.
First impressions count
As potential new tenants approach your property, make sure the exterior doesn’t let you down. Make sure it looks clean and well-maintained by adding a fresh coat of paint, or touch-ups where needed to the garden gate, fences, window frames and sills.
Keep the garden low-maintenance, weed if necessary or give it a quick power wash to clear debris and dirt. Add modern solar lights and clearly display the house number.
Technology and connectivity
Modern renters expect basic technological convenience, with 76% considering high-speed broadband as essential, viewing it as a basic utility. While it’s normally up to the tenants which broadband provider they choose, as it isn’t usually included in the rent, you can ensure the internet wiring and outlets are working and updated. Try adding USB power points in common areas and bedrooms too.
In multi-unit buildings, digital locks and keyless entry on the main community entrance, with an intercom system for extra security, are modern touches that show attention to tenants’ safety needs.
When it comes to renovating property, your ultimate goals should be to increase ROI while providing tenants with their dream home. These two factors go hand-in-hand, along with keeping maintenance costs as low as possible by carrying out regular checks to ensure everything is in good shape.
A cared for rental property is easier to manage, attracts quality tenants, and yields stronger returns over time.