Should you renovate your rental property
One of the questions we’re often asked by landlords is: “should I renovate my rental property?”
It’s an interesting question because often it depends on the condition and age of the property, the market the property is in, the landlord’s financial aims, and also the value of the renovations they’re contemplating.
But to cut to the chase, here’s what we suggest…
When things are tired or failing
Every now and then all rental property’s need a refresher – things like new paint work, new blinds and new door handles etc.
But how far a landlord should be prepared to go depends on a range of factors.
An updated kitchen with fresh appliances may indeed be appealing to a wider rental market, but that doesn’t mean it’s time for an extensive renovation and the top of the range appliances.
As a rule of thumb, renovate when required and don’t overcapitalise. New cabinets, drawer handles and perhaps benchtops might suffice rather than a complete kitchen makeover.
White goods and fixtures should also be selected with durability, longevity and economics in mind rather than the latest trends.
Meanwhile, this is not the time to be shopping high-end catalogues for state-of-the-art fixtures and fittings.
Functional, usable and able to stand the test of time and trends are the best options to go for when considering a renovation.
When the time is right
While some improvements can be made when a tenant is in residence and may even help you secure a longer lease, the best time to undertake significant work at your rental property is between tenants.
This period allows you to have your tradespeople get in and get out without interrupting the lifestyle of your tenant. After all, your rental property is the place that your tenant calls home.
That said, if a tenant has notified your property manager of issues with blinds or problems with the bathroom, there could be advantages to renovating on their behalf.
Really, it depends on the relationship with the tenant, the type of work that needs to be done, whether it’s in their interest and how disruptive that work might be.
Your property manager is the best person to advise on when the best time to conduct renovations is and what might be beneficial to your investment.
Talk to your accountant
Finally, renovations attract different tax incentives to repairs and maintenance, so talk to your property manager about the value any works might bring.
When you choose to undertake renovations and how extensive they are depends on the condition of the property, your ultimate financial aims and your situation now and in the immediate future.
If you’re looking for property managers who will work with you as a landlord to ensure your property retains its value and appeal, we can assist.
