Like everyone else, you have experienced challenges and disruptions to your life because of the COVID-19 pandemic. You have had to contend with restrictions if you have an investment property business. Now that the pandemic is easing up and life is returning to normal, you can focus on fixing up those issues with your properties that perhaps you have been neglecting.
Whether the costs of your planned renovations are included in the homeowner’s insurance or will be out of your pocket, you need to be prepared to get a good return on your Lexington Park investment.
There May Be Plenty of Little Things to Address
When you think about renovating a rental, the first thing that comes to mind might be the significant issues. These may include replacing the roof, installing a new HVAC system, or taking out the carpet and putting in hardwood.
But your project will most likely require updating smaller items such as outdoor lights, front and back doors, light fixtures, and cabinet hardware. Though seemingly insignificant compared to more expensive repairs, these issues can make a big difference in your project.
Raising the Rent Will Be Tough to Justify if You Don’t Spend the Money
Naturally, as you do your renovation project in Lexington Park, you will think about raising the rent. Doing so will add to your bottom line and help you recoup your costs. Be prepared to spend some cash upfront if you want to find tenants willing to pay what you are asking.
Some renovations will warrant a rent increase. For example, if you put in a new furnace and air conditioner, tenants will have peace of mind knowing that these systems will be efficient and provide comfort during harsh weather. Brand-new windows are also attractive to potential renters. When you put these types of items in the home or apartment, people are much more likely to pay an increased rent price willingly.
Budgeting Is Crucial
COVID-19 wreaked havoc on the finances of many people. Regardless of how well you were doing before the coronavirus hit, you probably learned a lesson or two about how to manage your business financially. Now, more than ever, you need to place a premium on budgeting.
It is not good enough to roughly estimate or ballpark expenses. You need to get specific and accurate with your forecasts. Make a list of every line item and record down to the penny how much you need to spend on each area of the renovation.
You May Need to Do Some Work Yourself
Even during COVID-19, real estate and home renovations were booming. This trend does not seem to be slowing down. There is tremendous demand for repair services, so finding professionals to handle your job might be difficult. Don’t be afraid to get your hands dirty and spend the time and effort doing some renovations yourself.
You can find success in your investment property business. When it is time for renovations, keep these issues in mind.
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