More and more people are choosing rental properties as a source of income with each passing year. There's always a market for renters. It's a good investment, as well, as rent continues to rise year after year.
Finding a fixer-upper is one of the classic ways to turn a profit on a rental property. A lot of people hear this and jump in blind. There's more to renovating a rental property than people realise, however.
Here are a few things you need to know about renovating a rental property, to make your renovation as easy and painless as possible.
1. Don't Expect Fast, Easy Money
Flipping properties was all the rage a few years ago. Flipping properties was all over the media, causing a gold rush of investors looking for the next get-rich-quick scheme.
The bottom has officially fallen out of that market, however. The average profits for flipped properties have fallen for the last three quarters.
There is money to be made, however. Reports show that buying and selling a house within a year yields £30k on average.
2. Stick to a Budget
Remember, the point of a fixer-upper is to maximise profits. You need to know ahead of time how much you're able to spend to get your rental property up to date.
The average cost of a home renovation is around £30,500. Renovations can cost much more than that, however. Especially when you get into more expensive renovations like the kitchen or bathroom.
Make sure to do the math and see how much you're able to comfortably spend for your property to remain profitable.
3. Decide to DIY
You should also realistically assess how much of your renovation you'll be undertaking yourself. A lot of people get this notion of buying a property and then putting in the hours to restore it to its pristine condition.
The problem is, they might not have the experience in home renovation in the first place to realise what they're signing up for. Renovating a property is very, very hard work. It's time-consuming and labour intensive at the best of times.
Before you even begin to think of renovating a property, realistically access your renovation skills. Think about what of the renovations you can undertake yourself, like painting or landscaping, for instance. Then create a budget with those factors in mind.
4. Find the Right Help
Finding the right person or team to help you with your renovation is often easier said than done. Simply looking up 'home renovators' on Google or in the phone book is going to tell you who spent the most on advertising, not what they're capable of.
Your best bet is to join some homeowner organisations in your area. Find some other people in your vicinity who've recently renovated their homes. Ask them for their recommendations and you'll get the inside scoop of what contractors and construction agencies to work with.
Rental properties are still an excellent source of income when you know how to go about it. Just remember that renovating a property requires hard work and dedication, the same as any other investment.
Are You Renovating a Rental Property?
You're in luck! we've been helping homeowners and property owners restore their properties to pristine conditions for years. It's one of our greatest joys.
If you're renovating a rental property, get in touch today to take advantage of our passion and experience.
Are you completing renovation work or refurbishments on a property that you own? It’s important to approach this the right way. Here's how to avoid problems and find a reputable builder.
For a landlord, health and safety should be the first priority. Choosing a building contractor with high standards of health and safety who are also certified by a nationally recognised Safe Contractor will avoid poor workmanship that could be a danger to the builders and a threat to the people living there. Property owners will also need to consider how the work will affect the value of the property. Poor renovation work will reduce the value of the property and in the event make it harder to sell.
So, how do you find the right builder for the job?
Look At Reviews
More than 80% of people researching companies and products online will now check reviews. This is a smart choice because you don't have to believe the marketing of the business itself. You need to explore unbiased opinions. That’s exactly what reviews allow you to do.
Google is the best place to start when exploring reviews. However, you can take a look at websites and resources like Yelp too. If you do this, you’re sure to find the information you need.
Check Their Portfolio
You need to make sure that you are looking at work that the builder has previously completed. They should have a portfolio of recently complete refurbishment projects and this needs to be easily accessible.
Usually, you will find the portfolio of work on their business website. If you are meeting them in person, then they should be able to present this to you. Make sure that you follow up with the references provided. Again, you don't necessarily need to take a builder at their word.
Make sure that the work they have completed matches what you need and reflects the level of quality that you want.
Ask About Awards
Some of the better builders will have won awards for the jobs that they have completed. This might include anything from awards for exceptional levels of customer service to an award for a particular refurbishment of building project that they completed. The trick here is to make sure that you know what the award is and when they received it. If it was more than five years ago, the quality of their work may not be the same.
Builders will typically advertise award wins on their website and it is also here that you are also going to find information about their standards of service and health and safety.
Check The Guarantees
You need to know where you stand when you choose a builder for property maintenance and refurbishment. The first aspect to consider is insurance. It’s vital that you select a company that is going to provide you with full insurance coverage. If the business can’t guarantee that the building work will be insured then you should consider another contractor.
The builder should also provide you with information about what will happen if the work does not meet your expectations or if your requirements aren’t met. How will this be dealt with and what can you expect in terms of support?
Ideally, you should find a builder that will continue to work until you are completely satisfied with the results provided.
If you would like further advice or have a property renovation or refurbishment project that you'd like to discuss please contact Lee West Builder and I'd be very happy to help.
Right now, one of five households in Britain is renting their home. That number is expected to increase to one in four households within a couple of years
If you own rental property already or are considering getting into the business, this is good news. However, it also means you'll be dealing with far more request for building maintenance.
By knowing some of the most common things tenants complain about, you can be ready to deal with them quickly so a small problem doesn't become a large one.
Keep reading to find out what maintenance issues are faced most often by building managers.
1. Clogged Drains
A clogged drain may not seem like a big issue at first, but this is one that can quickly turn into a nightmare if not taken care of as soon as possible. Whether it's a sink, tub, or toilet, clogged drains should be considered urgent repairs.
When a drain becomes clogged, it can cause sewage backups into other drains. This, in turn, puts your building at risk for water damage if these start to overflow.
Multiple clogged drains or numerous slow drains can also be a sign of a larger plumbing problem that needs to be addressed.
2. Leaking Pipes
A small leak may not seem like a big deal, but this is another plumbing issue you don't want to ignore for long. If you do, you may face water damage, mold growth, and structural issues.
Pipes that are cracked or broken can quickly do some major damage if the leak gets larger, so you'll want to take any complaint by tenants about leaks seriously.
3. No Hot Water
This is another common problem of tenants and although it may be able to be put off for a day or two during the summer, if you want to keep your tenants happy, you need to fix this problem quickly.
There are a number of causes of a lack of hot water, so go through a full maintenance checklist to uncover the root of the problem to get it solved.
4. Broken Appliances
When you can't cook from home because your stove isn't working or your food is going bad in your refrigerator, it's going to be frustrating.
That's why malfunctioning or broken appliance issues should be taken care of as quickly as possible. Your course of action will depend on the appliance and the problem but speed is key here for property managers.
5. AC or Heat Not Working
If your tenants are going without heat in the winter or AC in the summer, you can rest assured they won't be your tenants for much longer. Particularly for families, these issues need to be solved without delay.
Need Help with Building Maintenance?
Now you know five of the most common issues that need to be addressed when it comes to building maintenance. As you can see, taking care of these problems as soon as possible will keep buildings in good repair.
If you need help with building maintenance, consider hiring a company that specialises in just that. To learn more, check out our post with five reasons a property management company can help you.
In 2018, there were over 500 luxury apartment building in progress in central and western London. While this may not address all the housing needs in this international city, it does address the needs of its high-end inhabitants.
Amenities may have attracted individuals to your building, but more than simple maintenance is needed to keep them.
Read on to learn more about the ultimate building maintenance checklist.
The Ultimate Building Maintenance Checklist
This checklist has 3 parts and has all the details to keep high-end tenants happy.
Maintenance Required by Law or For Safety
Update Building Exteriors
These items should be serviced and inspected annually by the fire department and or a structural engineer.
Common but Often Overlooked Maintenance and Repairs
These maintenance tasks may seem common, if left undone they will overshadow other building upgrades.
Paint Common Areas
This should be done every 5 years when paint chips, appears to be worn or has lost its luster.
Replace Carpeting in Common Areas
After 5 years carpet will dull and start to unravel, replace it before it gets to this point.
Clean the Windows
This is a seasonal task that will keep your building sparkling.
Upholstery should be cleaned on a schedule and inspected regularly to ensure stains are not present.
Clean & Inspect Gutters
Downspouts and gutters need to be maintained at least twice a year. If you have water-related features, they should be visually inspected regularly and serviced twice a year.
Service HVAC & Plumbing
Annually check and repair furnaces, air conditioning systems, and plumbing.
Maintenance and Upgrades for High-End Buildings
These maintenance and upgrades will keep your luxury tenants engaged in your property.
Choose New Lobby Floors
While stone or wood floors will last almost 30 years if properly maintained, consider replacing lobby floors to match existing interior design trends. This helps to keep your building relevant in a competitive market.
Update Light Fixtures and Upholstery
Bulbs should be replaced regularly and replaced when they go out. However, if you also replace the fixtures to keep your building on-trend you will add to its allure.
The same is true for upholstery, while it may still be in good condition if it isn't following the current trends, it will leave you tenants wanting more.
Curb appeal is important. Look for eye-popping ways seasonally update landscape.
Consider consultants to help you stay updated on the latest technology for internet, building, and individual flats. Video monitoring of the front door, by individual units, adds a level of sophistication high-end clients welcome.
Looking for the Most Knowledgeable Property Maintenance Managers in London?
Obviously, there is more to any building maintenance checklist. But, we hope you will get a pattern from ours that caters specifically to high-end luxury living. We would love to hear from you, comment below.
5 Undeniable Benefits of Hiring A Property Maintenance Company. We have outlined the proven benefits of hiring a property maintenance company in 2019! We are here to help. Learn why you need a professional today!
Are you looking to own an income producing property? If so, you might want to consider using a property maintenance company to help take some responsibilities off your plate.
A professional can help make managing property easier for you and can provide you with many benefits.
Here are 5 undeniable benefits of hiring property maintenance companies.
1. Point of Contact
One of the most attractive benefits of investing in a property maintenance company is that they serve as the first point of contact for your tenants.
Any complaints or problems can go through your maintenance manager instead of you always having to rush over to the property to take care of things.
The maintenance manager can be responsible for being available in order to arrange service providers to repair any problems that may arise.
2. Less Legal Concern
Professional rental property maintenance managers have the expertise necessary to help ensure that you don't run into problematic legal concerns and potential lawsuits.
They will have a working understanding of your area's laws of how to deal with everything in a calm and legal manner to hopefully avoid any problems.
If there is a legal problem and your property maintenance manager can handle it, you can end up saving money from having a complicated legal battle.
3. Property Maintenance Companies Get Quality Tenants
Part of property maintenance and management is to screen all potential tenants who want to live in your properties.
A professional property management and maintenance company will have the experience to properly navigate the complex process of screening potential tenants. This includes quickly spotting the red flags that indicate "problem tenants".
This service is important because it helps you make sure that you have reliable tenants who will pay rent on time and not be troublesome for you.
4. Rent Collection
If you have multiple income producing properties or if you have other work responsibilities, collecting rent can be difficult.
A benefit of using a property management company is having someone who is responsible for collecting the rent from tenants every month. They are also the people who will take the necessary steps if tenants fail to pay rent.
The property manager will also be able to send out eviction notices if that becomes necessary.
5. Having Long-Term Tenants
A successful rental property will have long-term tenants who rent year after year.
If your property doesn't have great maintenance, there is a higher chance that your tenants won't want to keep their lease after it ends. When tenants don't stick around, there becomes the opportunity to have lost rental income in-between renters.
Not to mention all the money it costs to market the property, screen tenants, and get all the paperwork complete. This won't be an issue if you have happy tenants who choose to stay renting with you.
Less Stress and Headache
Property maintenance companies are there to make your life easier. The benefits you get from utilising their services mean less stress directly on you as the owner and less time spent working on the properties.
Lee West is a property maintenance expert and a refurbishment specialist. Check out these other articles for more great property management tips.
Lee West has a wealth of experience managing and refurbishing high class properties in London. He has been the lead contractor in many prestigious buildings such as Buckingham Palace, Clarence House, Chelsea Royal Free Hospital, House of Parliament, Kew Gardens and many more.