Owning multiple residential properties that generate rental income can be a huge responsibility. Hiring a property management company can take much of the work out of the equation. The one aspect to remember is that you are still responsible for paying for repairs and renovations. Revamping properties can improve the residences’ value and the ability to charge more for rent. Figuring out which improvements improve value yet are durable is immensely important. Research on the various renovations and enhancements can be crucial when maximizing your investment. Below are details to consider when revamping multiple residential properties simultaneously.
Used with permission from Alice Lane Interior Design
Cleaning After The Project Is Complete
The construction of any project is only complete once the space is cleaned. The last thing a renter wants to come in to see is a plethora of dust, along with dirt present. Commercial construction cleaning services are available, which can be critical. A tenant coming back to a dirty apartment can be a nightmare as they might rightfully refuse to pay rent. Taking the time to find cleaners that handle various forms of cleaning should be done. If you own an apartment complex, these cleaners can work wonders in keeping the property and spaces as pristine as possible.
Used with permission from Alice Lane Interior Design
Keeping The Budget Tight
Transforming your home into a vacation rental requires careful financial planning. Staying within budget can be a challenge for a single home or apartment renovation project. Hidden issues like water damage can lead to rot or mold issues. Keeping the budget tight while still having room in the budget for issues is wise. A property owner wants to avoid covering these with a credit card as this can accumulate interest quickly. Purchasing materials can be important as these are marked up by most contractors to increase their profit margins. Buying in bulk is possible with multiple projects being worked on simultaneously.
Financing is available through various avenues for improvements on residential properties. Home equity loans can be beneficial as the interest on the loans can be written off on taxes. Taking time to evaluate how improvements will impact rental prices is very important. Comparable properties in the area can be a great place to start the research process.
Used with permission from Alice Lane Interior Design
Current Tenants
Current tenants might be happy their current residence is going to be improved. The residents may go out of town for the holidays to complete the project. It is likely more manageable to renovate between renters rather than when tenants are still occupying the space. Revamping the properties might be done simultaneously when multiple tenants move around the same timeframe. Cutting rental fees for the time the residence is being renovated is an option if tenants have somewhere to go for a week or two. Putting tenants in other owned rentals is an option, but this has to be agreed upon. A renter is likely to enter into a longer lease if rent stays at the same rate while the apartment or home has been improved. The rental market has huge hikes annually in rental prices, which is a variable most renters do not want to deal with.
Used with permission from Alice Lane Interior Design
Finding A Single Contractor To Handle All Projects
Finding a contractor to handle all improvements could lead to some form of discount. You do not want to handle juggling multiple contractors as a single contractor. Completing multiple projects is challenging enough. A single contractor will use the same subcontractors, so the consistency of the finished projects will be steady. For those who own several rentals, forming a rapport with a contractor can benefit both parties. Being able to list apartments with incredible pictures of the properties can garner a number of rental applicants. The ability to choose between multiple rentals can increase the quality of each renter.
Renovations That Will Stand The Test Of Time
Wood flooring and carpet are not ideal options in terms of durability. Tile is going to be durable and great for tenants that might have pets. Tile can even look like classic wood flooring without the upkeep or potential to be damaged. Tiles can crack, but replacing a single tile is far easier than replacing a hole in a wooden floor or torn-up carpet. Owners also need to consider what renters are looking for in terms of a rental. A luxury kitchen with an island is quite popular due to the increase in counter space as families tend to congregate in the kitchen.
Revamping residential properties is rarely done due to wear and tear. Updating apartments or homes is also imperative to get the most rent possible for the property owner. Finding a balance between renting out the spaces and improving them is paramount. Thanks to Compass Phoenix for consulting
