Rental properties get damaged over time. Especially when your property is used for short-term letting purposes. The frequent turnover of guests means more people use the property. Despite your efforts to keep it clean in between bookings, it will naturally get damaged as time goes on.
This is just one of the many reasons why property renovation upgrades should be a part of your strategy. It’s one way to maintain or elevate the premium value of your real estate asset. Remember, the higher the value of your assets, the more wealth will be reflected in your portfolio.
In this article, you’ll learn 5 straightforward steps that can help you strategically improve your rental property. Each step is meant to enhance the value of your property so you can maximise your portfolio’s growth this year.
5 Steps to Upgrade and Renovate Properties
It’s important to be strategic in your property renovation approach so your property can stand out in a very competitive real estate market. It’s not just about improving the structure of your property. It’s about achieving legal compliance by choosing upgrade opportunities aligned with local laws. It’s also about understanding what your ideal guests and residents need so you can meet their preferences.
With all the ways you can renovate your property, how will you know what can increase the value most? Go through these 5-steps to be thorough in identifying the house renovation upgrades that’ll have the highest effect on your rental unit.
Step 1: Assess the property portfolio for upgrade opportunities
Assessing your property is vital in identifying what parts of the property to renovate. Go through every room in the property to uncover areas that require fixing. There are areas prone to wear and tear. Check the walls for faded paint or holes in them. You should also look at loose flooring and tiles. Scrutinise the kitchen counters. Do these need a simple fix or a total kitchen renovation?
Your assessment of every part of the property will allow you to identify and rank what needs to be improved according to priority.
Step 2: Choose the strategic renovations that’ll increase ROI
If you can’t afford to do all the renovations needed at the moment, focus on the strategic renovations that will directly affect the property’s return on investment or ROI.
Focus on upgrading essential areas like the kitchen or bathroom. A fully functional kitchen will allow you to raise rental rates. The same is true for a bathroom that has a spa-like feel. Or, you can give the whole interior of the property a fresh coat of paint. Sometimes, this is enough to improve its overall appearance and give it a semblance of luxury and premium quality.
Step 3: Consider smart home technologies
Adding smart devices for home entryways can also improve the value of a rental property. Incorporating technological features in your home will give it a modern and futuristic appeal.
Among the smart home ideas that you can implement include smart thermostats, keyless entry systems, voice-activated assistants and security cameras.
Apart from the premium vibe that it brings, these will also improve the operational efficiency of the property. The more seamless the operations are, the more it enhances the living experience of residents and guests staying on your property. At the very least, this will increase the chances of getting positive reviews - which can lead to better occupancy rates.
Step 4: Incorporate sustainable upgrades
Transforming your property to be more sustainable is also another way to upgrade your property. Sustainability is a big deal to eco-conscious residents and guests. Fortunately, it’s not that hard to transform your rental property to be more eco-friendly. It’s also an upgrade that can help you save on operational costs in the long run.
For short-term rentals, you can use sustainable products to offer your guests. Things like bamboo toothbrushes and organic soap bars can be great alternatives. You can even use sustainable fabric for your bedsheets and linens.
For long-term rentals, you can provide residents with sustainable furniture and energy-efficient appliances. You can even install solar panels to reduce energy costs and uplift the living experience of residents to make it more eco-friendly.
Step 5: Ensure property compliance with local regulations
As you figure out what to upgrade or renovate in your rental asset, it’s important to keep the local regulations in mind. Compliance is vital to succeed in the rental market so you need to ensure that your properties adhere to the legalities of the letting industry.
Not only that, the ever-evolving property market means the rules and regulations are also changing. You need to stay updated so your renovations will comply with the changes.
Keep in mind that the compliance rules will also vary depending on what type of property is being rented out. A single-room occupancy follows different standards compared to luxurious accommodations. Make sure you’re updated on the local regulations so you can avoid issues over time.
Benefits of Maximising a Rental Property’s Value
Renovating your property is not a one-time thing. Since the structure of your rental unit goes through wear and tear over time, the upgrades should happen now and then. It’s important to treat this as a strategic way of improving and maximising the wealth-building features of your portfolio.
There are several reasons why this will benefit your portfolio in the long run. Three of these benefits are as follows.
Elevating income potential
A well-maintained property offers the advantage of a higher rental pricing strategy. If you can make your properties stand out in terms of interior decoration, quality materials and state-of-the-art amenities and equipment, that promises a higher standard of living for residents and guests. This allows you to command premium rental fees from them.
Increasing occupancy rate
Renovations and upgrades can push your property into a premium position in the rental market. As residents and guests become more discerning of their rental choices, your property will come out as a suitable option for them. The modern convenience offered by your newly renovated property promises a better experience compared to other rental units in the area. This will lead to lower turnovers and a more stable income for property owners.
Although you’re asking for a higher rental rate, potential residents and guests will view it as a worthy investment because they can see the premium value of the unit.
Improving structural integrity
Finally, the regular property renovation upgrades will enhance the structural integrity of the unit. Addressing the wear and tear and updating the systems will allow you to scrutinise the property and fix damages before they can compromise other areas. For instance, improving the pipes to address water leaks will save your walls and flooring from further damage. It can prevent moulds and mildew from forming.
These are only a few of the risks that you can avoid if you implement property renovation strategies.
Rely on Property Expertise to Maximise Property Value
As a property investor, getting a return on your investment is not the only goal. With the right renovation strategies, you can maximise the value of your properties so you can reach your portfolio goals more efficiently.
The thing is, renovating properties to maximise returns is not just a one-time thing. It’s a continuous process that requires your constant attention. What if you’re too busy to monitor and handle all your properties?
This is where you can benefit from the expertise of a property management company. Opago is a reputable company that uses data-driven strategies to manage hundreds of properties all over London. Our smart technology allows us to monitor maintenance schedules and implement strategic upgrades to ensure compliance and alignment with the changing demands of the market.
If you want to improve your portfolio and make it grow, rely on Opago’s expertise. Schedule a consultation with us today. We can also give your properties a free valuation so you’ll know how to improve and upgrade them.
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