It is always worth looking at renovating your rental property to increase your rental return. There’s a few pros outside of just one that you can achieve by doing this. But, something to always be weary of, is not overcapitalising.
The first thing is to assess the type of property you have. If it is an old house that is starting to show signs of major maintenance, it may be worth selling. By doing this, you can take the money you make from that and put it into a newer home or something a little more solid. The reason why I suggest this, is if you begin renovating these properties, you’ll find that the extra expense lies behind the walls. The unforeseen expenses that come from older houses can push you well over your budget, yet the extra return remains the same.
Apartments are great to renovate. They are usually quite solid when it comes to internals (if it wasn’t, would be slightly worried!) and they are mainly a cosmetic spruce up. Kitchens, bathrooms, a bit of paint and some nice flooring. Apartments already provide a superior rental return over housing, so putting money into renovating is worthwhile.
When it comes to renovating your rental, houses or apartments, the most important thing is to only do the basics. Updating kitchens and bathrooms are the main areas and most expensive. Keep a tight budget and stick with it. With the flooring, it’s worth putting down good durable carpet or boards, but not over the top with the expense. Always remember that you are renting the property out, so the person living there may not care as much about scratching the floor or cleaning appliances as much as you, the owner. So, find middle grounds with appliances, fittings and fixtures and keep a strict budget.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.