Renting out a number of properties to make a living is one thing, but knowing how to improve these assets to ensure a steady climb in income is another. If you’re in the business of investment property, for example, and you buy and renovate bank properties to rent out, there are a number of features you can add to these potentially rundown properties to add value and, in turn, increase the rent that you can ask for.
While it may be tempting to not spend the money on added features or upgrades, in order to save money, this can harm your business in the long run. According to Investors Chronicle, “if you let more than one UK property you have to add together all your income from them and all expenses, and treat the properties as a single business.”
If one or two properties aren’t upgraded while some are, the more rundown properties could negatively impact your income as a whole, as they will contribute less to your total profit. So, while you may not want to fork out additional money now, it will prove a fruitful investment for your future.
Here are a few ways to add value to your properties, in collaboration with Private Property:
Fix surface defects
Surface or superficial defects may not seem like major issues to solve immediately, but they can cause potential renters to negotiate a lower price, or put renters off all together, forcing you to lower your price just to get a tenant into the property. Superficial defects include:
- Loose tiles or flooring
- Broken windows
- Broken locks or latches
- Chipped paint
- Broken cupboard doors
- Mouldy bathroom or kitchen fixtures
These issues can put potential renters off, but are typically easy to resolve and not expensive to fix.
Get energy efficient heating
A central heating system is a must for living in the UK, and having one that is both functional and energy efficient will give your properties a higher market value. If yours is in need of fixing or even replacement, it’s a worthy upgrade that could also save you on your monthly energy bills.
Additionally, take a walk through your properties to see that your insulation is still intact, windows are not broken, and doors are not letting a draught through. All these things can decrease the effectiveness of your heating system.
Upgrade the kitchen
While upgrading a kitchen can be an expensive task, it is one of the most important rooms in a home, where a lot of value is placed. Tenants not only want a clean kitchen, but also an attractive one that lends itself to easy cleaning and even entertaining. From granite countertops, freshly painted cupboards that are squeak free and modern taps, to modern tiles and modern appliances, there are a number of ways to increase the appeal of this space and, in turn, the appeal of the house.
While it’s not advised to embark on all of these upgrades or fixes at the same time – as that can work out to be extremely costly – they are important ones to consider when the need arises. You don’t want to get yourself into debt or a tight financial situation, but there are certain things that can be fixed or replaced to improve the attractiveness and overall value of your properties.