Purchasing an investment property often means that you will have to make some renovations. If this is your first time becoming a landlord, you may not know where to start.
Read on to discover some great advice for landlords on renovating an investment property.
#1 – Budget Carefully
You should prepare yourself now for the fact that most things will cost more and take longer than you think they will. Accept that fact now, and you’ll be ahead of the game.
You may have great dreams of new hardwood flooring, custom kitchen cabinets, granite countertops, and spa bathrooms with soaking tubs, all of which you plan to have completed within a month.
Sorry to crush your dreams, but it probably isn’t going to happen. Before you ever purchase an investment property, you should have a realistic estimate of what it will cost to renovate it.
If you don’t know much about renovating homes or the cost associated with that, take someone with you who does. Bring a knowledgeable friend or hire a contractor, and take that person with you when you are house shopping.
If you know how much it will actually cost you to renovate a unit and how long that will take, you can make a better decision about whether the property is worthwhile.
#2 – Be Prepared to Devote Your Time
Lots of people think that being a landlord means signing the papers and collecting checks. It isn’t usually that simple, especially in the first few months. You’ll have to meet with contractors to get bids.
You’ll have to inspect the work that is being done and manage contractors. You’ll have to shop for supplies and wait for deliveries.
You’ll have to meet with potential tenants and review rental applications. This will all take longer than you think. That’s ok, as long as you know what to expect.
If your other responsibilities don’t permit you to devote that kind of time to your investment property, consider hiring a property management company.
These companies charge a monthly fee, and in return they handle things like finding tenants, taking care of maintenance, and collecting rent for you.
This can be a great way to benefit from investing in real estate without sacrificing your free time.
#3 – Get Multiple Bids
Never take the first bid you receive. You should always get several bids for any project, especially larger projects. This way, you can compare them and see if they are fair.
You shouldn’t always take a bid that is significantly lower than the others, either. If a bid is substantially less than other bids for the same work, you need to ask why. It is possible that something was not included that should have been.
#4 – Prioritize Paint and Flooring
It is common for the walls and floors to look a little run down when you buy an investment property. These are important areas to spruce up. Paint all of the walls in the house one neutral color.
This will make it much easier to touch up later on. When it comes to flooring, carpet isn’t a great choice for rentals. It gets dirty and looks worn out quickly.
Instead, consider tile floors for kitchen and bathrooms, where water can be an issue. In other rooms, go for hardwood or wood laminate, which are easy to clean.
Do you need advice on renovating your properties? Get in touch with McMath Realty.
We offer a variety of services to assist you in maintaining your property, including investment consulting,property management,rental management,property inspections, and home maintenance services.
We manage rental properties in Chandler, Mesa, Gilbert, Scottsdale, Phoenix, Glendale, and all areas of Maricopa County.
We advertise your property in the MLS listing, on multiple websites, and on our own website. We also use signage to attract potential renters who are out driving around and looking for rental opportunities. We will assess your property, recommend improvements, and help you price your unit appropriately.
Contact McMath Realty at https://mcmathrealty.com//contact.php to learn more about how we can help you keep your rental property in great shape and take care of the day-to-day dealings with tenants!