Investing in real estate can be a very wise decision, but there are certain things to keep in mind when looking at buying and renovating an investment property. If you’ve already made your purchase and are thinking about renovations, keep in mind you’ve bought or are buying property with the purpose of generating income.
Any renos you decide to do should not be overly costly, but should also keep the property safe, attractive and clean.
These six tips for renovating property for renters may help you to keep your tenants and your bank account happy:
Leave the basement unfinished
There is no need to go to great lengths to create a finished rec room in the basement when you’re renovating an investment. Of course, it’s different if you’re planning on building a basement suite. But otherwise, if the tenants are lucky enough to have a basement space, they can use it for storage or for a laundry area.
Don’t replace what works with something better
A good case in point here are windows. If your rental has older windows that work just fine, why shell out the money to update them? If the furnace is older and isn’t as energy efficient, there’s no need to replace it, especially if the tenant is paying the bills.
Use good quality paint
This is an area on which you can spend a little more. High-quality paint will save you from having to repaint every time a tenant moves out. Semi-gloss is best since it cleans well. You might consider using paint designed for the kitchen and bathroom in all rooms since they’re durable and long-lasting.
Walk away from laminate floors
Laminate may be on the inexpensive side, but if not taken care of properly, it can cause problems. It may be all right for your own home, but tenants may be rough on it and it’s susceptible to buckling, water damage and scuffing. You have to remember that some tenants may not be careful with the property because they don’t own it.
If you’re going to do renos at all, don’t let them drag out. The sooner you get things done, the sooner you can rent the place and start generating income. If at all possible, try to schedule any updates to the property between tenants moving in and out.
What really are your goals?
When deciding on renovating an income property, think about what will save you and make you money and what likely won’t. Whatever you decide choose materials that are durable, cleanable and come at a reasonable price. Take the time factor into account as well. As a landlord you will want to make as much money as you can in the quickest time possible.