Upgrading Buy-To-Let Properties For The Most Return


Many countries have seen a dramatic increase in the number of people renting their homes. Although this opens doors for landlords, there is slow growth in the buy-to-let sector, so you want to make sure what you are investing is making the most money, especially when upgrading your units. The rental price has to match the market, so you really have to balance the cost of any changes with the estimated return on investment. Though you factor in periods where the property will stand empty, you want to keep those times at a minimum. This will happen if your property appeals to tenants and they stay for longer periods. Set your budget and decide what makes the most sense to bring in tenant dollars and get good tenants to stay. Focus on long-term improvements that will maximize investment in your property.

The Outside Matters

property

Keep up with regular maintenance on the exterior by completing masonry and painting projects as needed. The building will look well-maintained when it is well-maintained. Curb appeal will generate interest from tenants. On that note, consider replacing the main entry door, which is the first place that tenants will interact with your building. Landscaping may also be on your list of exterior upgrades. Though the appearance should be neat and tidy, don’t overdo. Consider the cost in time and money of maintaining the yard, and don’t take on more than you can handle. Make sure your expenses do not outpace the property value of the neighborhood. Any property you are letting will only bring in as much as the neighborhood will bear.

What Tenants Want Inside

Newly painted walls will bring the highest return on investment by giving a fresh look to a tired space. If you want to add value and spark interest, concentrate on the kitchen. People like things that look modern and new, and are willing to pay for it. Matching appliances are a great place to spend money, and will generate a good return. Replacing cabinets can be expensive, so if you can paint them or get away with replacing the doors, that makes more sense. Because kitchens are usually smaller spaces, replacing vinyl or linoleum flooring with tile is a great way to add value to your property that translates into higher rental rates and long-term tenants.

Investing money in upgrades should be done with care. Make changes that provide a blank canvas that a wide range of tenants will feel they can make their home. It’s a challenge to weigh the costs with benefits, but a few well-placed upgrades will go a long way in appealing to renters. As the costs of owning investment property continue to climb, you can maximize your income with tenant-friendly upgrades that keep your investment looking good and well-maintained, with happy tenants willing to pay for your upgrades.

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