“Let’s begin our today’s write up with a fun-hypothetical scenario for you”.
Suppose you’re Adam/Adele, a discerning prospect seeking for rental property in London, UK, and finally comes across two potential rental properties with corresponding rent, let’s say option A and option B.
| Option A | Option B |
| Mesmerizing Aesthetic Exterior (Adequate house number, outdoor lighting, maintained garden area) | Weared and Teared Exterior (Peeling paint, rusted gate, damaged door) |
| Ample Storage Solutions (Built-in wardrobes, under-stair storage, shelving systems) | Limited Space to Assume Household Items. |
| Durable and Beautiful Flooring (Stain & scratch resistant tiles, water-resistant LVT tiles) | Cracked and Stained Tiles |
| Modern Modular Kitchen (Modern handles, enhanced lighting, energy efficient appliances) | Compact Cooking Area with Malfunctioning Cabinet and Appliances |
So, as a person looking for a place to live, which option do you go ahead with?
Ofcourse, your mind will echo option A and anyone with bare property acumen would naturally choose option A.
But why would anyone go with option A? Let’s give it a thought.
It’s simple; because its characteristics and offerings add value to your life.
Our only intention to weave this scenario is to illustrate why renovations are an overarching factor for rental properties for property investors or anyone who wants to yield good rental over their property.
But is it possible to notch this in budget? Do moderate alterations charm the potential prospects? Indeed, it can!
After comprehensive research, for our valued readers, we have come up with strategic and frugal improvements that can significantly boost your property value and rental yields.
So, without any further ado, let’s get started.
External Appeal
“First impression is the last impression”.
This popular saying ideally applies here as your property’s exterior establishes the initial impression for the prospective tenants, you can say it works as a business card for your property.
Therefore, heading with making modest improvements to the property’s exterior can be worthwhile.
You can apply the following improvements to enhance the appeal of your asset.
- Installing a composite door with compelling house numbers.
- Update outdoor lighting to upscale kerb appearance.
- For inviting touch, you can leverage window boxes or small planters. Also they require minimal maintenance.
- Well-maintained garden areas also add up to the overall allure of the property. Laying artificial grass is also a great alternative if you want year-round appeal with less maintenance.
And that’s how you can 2x the personality of your belonging.
Flooring Solutions that Stand the Test of Time
It’s an universal and undeniable fact that rental properties’ flooring endures formidable wear and tear, therefore, it makes durability an indispensable aspect that carries that same weight as being aesthetically appealing.
So, what you can do is leverage laminate flooring as it offers a balanced blend of cost-effectiveness and appearance, especially options that convincingly mirrors hardwood.
The unique selling proposition of these surfaces is that they resist stains and scratches and cater to an easy-to-clean mechanism between tenancies.
And as far as hallways and kitchens are concerned, you can invest in luxury vinyl tiles (LVT) as it provides exceptional durability and water resistance. Also, it is considerably easier to install in contrast to traditional tiles, leading to reduced labour cost.
Lastly, you might know that high-grade carpet remained popular with tenants, particularly in winters, so go for neutral colors and stain-resistant treatments to upkeep the appearance between lets
Kitchen Upgrades
The kitchen area of the rental property makes or breaks the deals, maybe that’s why it is considered as the focal point for potential tenants. Therefore, as a property investor, you should aim for maximum impact.
But how would I do it? If you may ask!
See, considering the budget and cost-effectiveness, you should focus on cosmetic change rather than undertaking a comprehensive overhaul.
You can start by installing new cabinet doors and drawers as it transforms wacked units into a sleek, modern kitchen, that too at a fraction of the cost of a new kitchen installation.
Additionally, investing in fresh worktops, especially that mirrors natural stone or quartz, can create an upmarket appearance without the premium price tag.
It is not necessary that only complete modification can elevate the kitchen’s appeal; simple additions such as modern handles, improved lighting, or a fresh coat of paint can do the trick.
Valuable Insight
Many property investors leverage energy-efficient appliances to attract environmentally conscious tenants. It gives them an extra edge in the property rental market and also to command high rental rates.
Bathroom Improvements
When it comes to renovating the bathrooms, you should be more considerate as extensive plumbing can exceed your budget.
So, all you have to do is emphasise surface-level improvements that rekindle the space without demanding major changes.
For a clear image, we have listed some bathroom budget renovation ideas that you can take into consideration and transform your property’s bathing area.
- Re-grouting tiles, replacing shower heads and taps, and installing new bathroom furniture will give the bathroom a modern look and feel.
- Leverage a fresh coat of moisture resistant paint in neutral tones to illuminate smaller spaces and captivate a broader tenant demographic.
- Good water pressure = Complete Satisfaction. Therefore, consider upgrading to a powerful shower.
- Another practical approach to broaden potential tenant windows is installing grab rails and non-slip surfaces. It not only consolidates and empowers safety but appeals to older/aged renters or those with mobility considerations.
Energy Efficiency
What would be more enticing and persuasive for the potential prospects/ tenants than efficient heating and insulation systems that significantly reduce utility bills?
We humans are instinctively cost-conscious and always seeking ways to cut corners.
So, investing in effortless measures such as drought-proofing, Installing thermostatic radiator valves , and LED lighting can attract frugal renters.
Also, to lure tech-savvy tenants, incorporating smart thermostats and energy monitoring systems could make a significant difference.
These improvements are often eligible for governmental grants that reduce the initial investment whilst enhancing the property’s energy performance certificate (EPC) rating.
Such relatively inexpensive additions not only demonstrate commitment to modern living standards but also justifies premium rental rates while dropping void periods.
Financing Your Renovation Projects
Do you know that you can maximize your investment potential as a property investor and can achieve fruitful returns simply by financing your project?
Yes, as renovating your property includes durable materials and timeless designs and could exceed your pre-determined budget. Hence, it is a savvy approach to research for available financing options.
So, seek for limited company buy to let mortgage options when expanding, as these respective structures offer greater flexibility for funding improvement projects while providing potential tax advantages.
To identify the most suitable financing arrangements for your particular circumstances and investment strategy, you can get in touch with specialist mortgage brokers.
Just keep in mind that successful budget renovations are a product of discreet planning and strategic thinking rather than substantial financial outlay.
The key lies in contemplating your target demographics and addressing their primary concerns, from functionality, hygiene, to value for money.
