4 Tips for Your Investment Property Remodel
Remodeling any property, whether you’re an investor or a homeowner, is always a massive undertaking. Sometimes it’s hard to know where to start! While there are plenty of things you can do short of a full remodel, a time will come when it may be necessary. When you’re remodeling an investment property, time is of the essence. When a property is vacant, it’s at its most costly. It’s possible to remodel while tenants are living there, but it can be a major inconvenience and disruption to their lives.
When you’re planning a remodel, you want things to go as smoothly as possible to keep the costs from piling too high. Here are just a few tips to keep your remodel on the right track.
4 Steps to Successful Property Renovations-
Be consistent.
For any renovations, consistency is key — and in two different ways. First, keep in the mind the value of your property and the properties around it. Outclassing the neighboring homes through renovations can actually hurt you in the long run. In the same vein, try to keep the renovations consistently valued throughout the property. Having a five-star kitchen in a two or three-star property isn’t helpful if you can’t afford or don’t intend on elevating the rest of the home to the same level.
From an aesthetic point of view, consistency also matters. You don’t have to be an interior designer to know that cohesion is important. If you can’t commit to a theme in colors and fixtures, going eclectic is perfectly acceptable. It just have to be intentional instead of haphazard.
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Don’t rush the prep work.
In remodeling, the prep work is one of the most important parts of the process. It’s always a pain to sort through contacts, materials and timelines, but it’s necessary work. Get a day planner or notebook and keep track of all the pertinent remodeling information. Organization on the front end will keep you on schedule. Discuss timelines with contractors and builders. With careful planning, everything will run that much more smoothly.
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Respect your budget.
Budget, budget, budget. Not only do you need to factor in material and labor costs, but the cost of the property itself while it is vacant (if this is the case). On top of that, leave room in your budget for emergency funds. You should be prepared to cover contingencies, delays and hiccups throughout the process of property renovations. Over-estimating costs leads to pleasant surprises while under-estimating leads to big headaches and empty pockets.
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Make room for the unexpected.
When coordination is required, things are bound to get off track at one point or another. A problem with the property could be discovered, delays could crop up due to weather or other factors you have absolutely no control over. While you should take every step to mitigate their negative impact on your investments, there’s no need to stress. Allow room for setbacks and taking them as they come will be a lot easier.
When remodeling your investment property, keep in mind your overall investment goals. How will this remodel help you achieve them? Are you giving tenants what they need and desire in a property? Examine your motives and make sure they line up with your real estate investment ambitions. You’ll be glad you did.
What do you consider first when planning for an investment property remodel? Share with us in the comments.
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