Refurbishing a rental property can be a big project. And when you’ve already had to invest a fair amount to buy it, the big question is: how much more do you need to spend doing it up?
Is it worth putting in a high-end kitchen and bathroom, or would it be better to go mid-range and then spend more on furniture? Or can you do a budget refurb and still get a decent rent?
Well, a lot of it depends on your target tenant. If you’re hoping to attract an executive-level tenant – particularly if you’re letting in a major city – you’ve got to go high end with your fittings and furnishings. And if it’s a fully-furnished let, you’ll also need to buy quality kitchen gadgets and invest in things like a decent television and sound system.
Although the cost will be relatively high, it should be worth every penny because of the premium rent you’ll be able to charge.
But what about more ‘standard’ lets? If you’re aiming at young professionals or families, does it make sense to spend more than the average on kitting the property out?
Most of the time, yes it does. There are a lot of rental properties out there, and if you want to attract the best tenants, your property’s got to stand out.
The first thing to do is to speak to your agent about supply and demand – what are tenants looking for and what’s in short supply? That’s the minimum you need to provide. Then search online for properties similar to yours and look at the standard of accommodation they’re offering – then beat it!
And remember, your returns aren’t just about the amount of monthly rent you can charge. A successful property investment also depends on protecting the capital value and keeping void periods and ongoing maintenance costs to an absolute minimum. And, in our experience, when you go the extra mile to provide your tenant with a high-quality home, they tend to look after it, pay their rent on time and stay longer.
If you want to know more about what tenants are looking for locally, or if you need a hand with budgeting or calculating returns, get in touch – we’re here to help! Give us a call on 01268 955001 or email email@example.com and we will be in touch shortly.