Buy to let properties come in all shapes and sizes and in order to ensure the best possible return on your investment, and attract high calibre tenants, it may be necessary to carry out some renovation works before marketing the property for rent. We have compiled 5 of our top tips for investors considering a buy to let renovation project.
The first step for any would-be investor is to research, research, research. Make sure that you know the market that you are buying into inside out including; demand for particular properties, likely groups of tenants, and desirable areas.
It is also important to be realistic in terms of your budget and the timescale required for the works. For example, if major structural renovations are required the timescale for the project will increase. Can you afford to factor in this additional time before seeing a return on your investment?
Top tip: Be realistic – outline a sensible budget at the beginning and aim to stick to it.
Finding the right contractors can be difficult and time consuming, especially if this is your first project and you do not have contacts in the area. We would advise going on word of mouth recommendations from trusted sources, and also viewing examples of work where possible.
Most contractors will provide quotes free of charge; get 2-3 quotes for each part of the job so you can ensure that you are getting the best possible price. Although it is important to get value for money, especially for a buy to let property, quality of work should always be top priority. After all, if a job is not done properly it can end up costing more money to fix further down the line.
Top tip: Try to find a contractor who can undertake as many of the different elements of the project as possible. These tasks will most likely be subcontracted out, meaning easier coordination between contractors and one point of contact for you
3. Add value
When marketing a property for rent the aesthetics are important, especially as the first contact a potential tenant will have will most likely be through online marketing pictures. Many visual improvements that will help to increase the potential rental value can be made without significantly adding to the overall cost of the project, for example
- Repainting walls
- Upgrading flooring
- Tidying garden/ outside space
- Repainting interior and exterior doors
- New window dressings
- Upgrading kitchen cupboards with new doors and handles
Top tip: Choose a bright, neutral colour such as white for the internal walls. This lightens the property and, if all walls are the same colour, means that any touch-ups in the future will be simple.
4. Furnished or unfurnished?
One questions that most new landlords ask is whether they should provide the property furnished or unfurnished. This varies from market to market and depending upon the type of tenant that you are hoping to attract. It is important to have a clear idea of your prospective tenants before rushing to furnish the property.
In Edinburgh we find that there is a greater demand for furnished properties, however, as the rental sector is growing more and more tenants are purchasing their own furniture and renting long term. These tenants often pay comparable rent to those in furnished properties and often stay in the property for longer, meaning lower costs for landlords.
Top tip: If in doubt keep the property unfurnished and gauge how it is received on the market, furniture can always be added before the tenant moves in if required.
There are essential safety regulations that must be adhered to before tenants can move in including smoke and heat alarms, and gas and electrical certificates. The Private Rented Housing Panel (PRHP) is responsible for enforcing the safety of rented properties, a full list of their requirements is included here
Top tip: If you are redecorating the property it is worth having smoke and heat detectors fitted first, this eliminates the needs for paint touch-ups after.
At Clan Gordon we provide a complete service in buy-to-let property acquisition, renovation, lettings, property management and development. We have an established group of contractors who we work with closely and can use for works such as painting, new flooring, plumbing and joinery works. If more substantial works are required, we can project manage renovations and have an in-house Architect on hand to advise.
As a professional firm of Chartered Surveyors, we can provide you with an accurate rental valuation based on local, comparative data, ensuring that your property is perfectly positioned to find the right tenant for you. Contact us today for a friendly, impartial chat on investment and renovation opportunities.