What to Renovate After Purchasing Your First Income Property
The whole point of renovating a property is to increase its value to eventually be able to sell it for more money or increase the monthly rent.
However, it is important to plan these renovations strategically. After all, you should only put your money into renovation projects that are going to help you make a higher return in the long run.
How to Increase Property Value through Renovation
Here are 7 steps to significantly increase property value through renovations:
Add a Fresh Coat of Paint: You will be amazed by the difference a fresh coat of paint can make. It can revive and brighten a tired space. Neutral colors are universally appealing.
Add Curb Appeal: A few strategically placed plants, a new mailbox, outdoor lights, or shutters can make your property more inviting. Higher cost and potentially higher return projects include new siding, new walkways or driveways, and adding a deck.
Change Fixtures: Change out a doorknob, light switch cover, cabinet handle, or even a light fixture. It's a simple method to breathe new life into the space.
Change or add windows or doors. This is a valuable addition. Not only does it improve the aesthetics of the home, but it also can reduce noise inside the home, help lower heating bills and cooling bills and increase natural light inside the home. French doors that lead out to the backyard add elegance, open up space, and allow more light to enter the property.
Update a kitchen or bath. This includes changing a portion of the room, but not an entire gut renovation. It could be changing the flooring or changing countertops. In the bathroom, you could switch out a toilet, sink, or bathtub. In a kitchen, it could include buying new appliances.
Gut renovate a kitchen or bath. This would be a complete overhaul of the room. It can involve adding new cabinets, new countertops, new flooring, new lighting fixtures, new appliances, new sinks, new faucets, new cabinet handles, new tub, new shower, a new toilet or even changing the layout of the room.
Create a more functional floor plan. For example, this could be taking down a wall between a kitchen and living room. It could be rearranging a kitchen to create more usable space. It could be adding a bathroom to the master bedroom to create a suite. It could also be swapping the location of two rooms, such as an office and a dining room to create a better flow in the home.
How to Increase Property Value through Addition
Another way to increase property value besides fixing what’s already there is to add new features and amenities. Here are a couple of things you can consider adding to your property to boost its value:
Adding an outdoor entertaining deck
You could even opt to add a small gazebo that will give your backyard a resort-like quality. Or, if you’d like to save, think about what you can do with your existing space.
If you have a courtyard, you can tidy it up, add a stylish outdoor setting, a barbeque, nice lighting and some plants, and you’ve got yourself an attractive entertaining area. If and when the time comes to sell, buyers are able to envision themselves living and entertaining there.
Change the layout of your home
Sometimes, it’s as simple as knocking a wall out to create a larger, less confining space. Unless you are particularly handy, it is recommended to hire a builder to do the work. They’ll also be able to make sure the walls etc. requiring change are not of a lot of structural significance.
While prices vary depending on the size and material of the wall (as well as the builder), they typically start at around $300. If it is a load-bearing wall, you should expect to pay at least $1000.
Simple landscaping
A grand, intricate garden is absolutely beautiful. However, for the average person, it may be too complex and time-consuming to maintain. If your garden needs some work, consider simple changes and additions. Adding some grass, shrubberies and easily to maintain plants can aesthetically enhance a property and increase its value.
Rethink your lighting
Consider adding dimmers to as many overhead lights as you can and be considerate of the brightness and color of the light. A stark white, ultra-bright light is unappealing, unflattering, and definitely, something to avoid in rooms with mirrors. No one wants to feel bad about themselves when they’re brushing their teeth!
Add warmth with a fireplace
A fireplace may not be a top priority for every homeowner, but just about everyone likes them. Not only do they add literal warmth, but they also serve as a space for family time and can be an alternative center of the home.
Don’t forget about storage!
Most buyers will be looking for a lot of inbuilt storage in a new home. It is very practical and much better than having an oversupply of free-standing wardrobes and cupboards. Think about adding built-in wardrobes to the bedrooms and maybe even a walk-in wardrobe for the master bedroom. It’s a good idea to have a linen cupboard as it can be hard to find space for excess bed linen, towels, and blankets. Storage in the laundry room or cupboard is also a valuable and attractive addition for buyers with families.
Turn Your Property into a Smart Home
Pick up two or three smart home gadgets and boom! Your boring old house is now a “smart home” with “state-of-the-art technology.” Landlords can also see excellent returns on smart home updates with higher rents. Start with a smart thermostat, so you can boast to prospective buyers or renters that it will save them hundreds of dollars a year on electricity and gas bills.
Then consider smart door locks, smart smoke detectors, or a smart security system. Smart door locks also have a functional use for landlords and property managers, who can grant temporary access to anyone: contractors, real estate agents, leasing agents, prospective tenants, etc.