Rental value is usually a major consideration when a prospecting tenant seeks for a place to move in. Hence it is essential that a landlord ups his game if he is to lease out his property at an acceptable price. This article aims to give useful tips on how a landlord can successfully increase the rental value of his property with his renovations.
Many Nigerian landlord do necessary or systematic renovations on their property once it becomes vacant to attract new tenants who may likely pay more for the property than its worth just because the landlord has wisely pimped it .
Anytime a landlord wants to make more money on his property who comes up with various plans on how to make the house attractive for prospective tenants, so they won’t raise an eyebrow when he increases the rental value.
That notwithstanding, the question then is; what part of the house that’s is to be put up for rent the best for renovations and that’s for the landlords who don’t have so much to throw around. Or where is one’s money best spent to increase the value of the home or property? As it is budgets play a big part in a renovation. Some landlords blow their entire budget on one room and neglect the rest of the apartment.
Unless you have an unlimited budget, here are some helpful do’s and don’ts that should assist you when coming to the renovation decision.
- Never proceed with aesthetic renovations when there are structural or plumbing/electrical issues with the home. Yeah! These aren’t sexy fixes but they should always be a priority when doing renovations. Let’s face it; there is nothing worse than redoing your master en suite and then having a roof failure and water damage to the ceiling etc. Invariably, It’s not ideal to start any renovation at all without a solid foundation/structure.
- The biggest mistake made in renovations are the disconnects, an example being granite counter tops installed on 40 year old bathroom cabinets. You may consider this an upgrade but to a potential renter they see this as putting “lipstick on a pig”. If you are trying to rent out the house with just an updated bathroom to prove its worth, good luck. However, no sane person will want to pay so much for poor renovations especially when they have to be completely redone.
- On a limited budget? Be smart! – consistent renovations are by far the best bet to increasing the rental value of your residential property and making high returns on investment. In other words, do some mild updating in all of the rooms. You would be surprised how fresh a home looks with new paint, light fixtures/switches. All of these will most certainly add value when the time comes to lease out
- Changing a traditional floor plan of a home and creating a more functional one is great if you have plans to increase rent. Tearing a wall out can create that “open concept layout” one desires and it doesn’t have to be expensive.
- Timeless design – when renovating, choose styles and fixtures that will remain current, what you like may not be appealing to the masses.
- The kitchen is always the most expensive room in the house to renovate, so proceed cautiously! It can make or break the rental value of the property. So choose your layout, design and fixtures with care and hiring a designer for input, wouldn’t be the worst decision one could make.
So remember to always have a plan before starting a renovation. There is nothing worse than a half finished kitchen and no money left in the budget to finish it! Though what is obtainable for most landlords in Nigeria is that they collect money from a tenant in advance with promises that they would pimp up the apartment before they move in.
In all landlords should be wise with their renovations in their bid to increase the rental value of their residential property so as not to shoot themselves in the leg on the long run.