Should I Renovate My Rental Property?
Sometimes, renovations are necessary for boosting your property’s market value and appealing to a wider range of high-calibre tenants. With so many properties available to choose from, helping your home stand out is key to catching people’s eye and securing interest. Renovation can be a crucial factor in your long-term property investment, and can pay dividends down the line. Not only does renovation improve aesthetic appeal, but it will also enhance a property’s durability, functionality, and quality, which makes for a hassle-free tenancy when it’s time to let.
Why Use Zest Rental Property Renovation Management?
At Zest, we offer a comprehensive project management service. This service is ideally suited to owners who do not live close by or simply do not have the time or appetite to oversee refurbishments to their property.
We can help with this.
In essence, we take all of the stress of overseeing refurbishments away. We are experienced in this area and can project manage the smallest of jobs (new bathroom) and the largest too (complete property overhaul, new kitchen, bathroom, full re-dec, landscaping etc).
We work with trusted, local contractors in Bath with whom we have had a relationship with for many years.
What does project management include?
- We will work closely with you to understand your preferences in design and materials.
After deciding a budget for your project, we will set up a tracking sheet and gather quotes for your approval based on our initial design conversations.
- We will liaise directly with all contractors and provide you with regular updates on the progress of the refurbishment, including images and key dates for installations.
- We will provide you with a separate financial tracker so that you are able to see all costs incurred and an overview of spend to date. All invoices will be collated for you in one easy folder.
- We act as the main liaison with contractors and delivery teams so when problems arise (and let’s be honest, they often do!), we are there to sort them.
What’s the difference between renovation and refurbishment?
These two terms might be thrown around interchangeably, but they are actually describing two different things. Renovation refers to the process of restoring something to its former condition, and can also involve altering the internal structure of a property through extensions, conversions, or changing the floor layout. Refurbishment is further improvement through decorating, cleaning, and equipping. They are often less intrusive and are more about the appearance and appeal of the property.
How often should landlords renovate a rental property?
It’s recommended that landlords address renovation projects every five years. There’s no legal or set time frame for tackling home improvements, but most experienced property owners advise regular upkeep, as ensuring your property is in good condition will benefit both you and any current or prospective tenants. Unless the works are essential, these are best planned in between tenant occupancy, so as not to cause any disruptions to people renting out the property.
When can I schedule my renovation?
With renovations, we always look to schedule before setting up a new tenancy or in the switch over between tenancies.
How does bridging finance work for renovations?
Bridging finance offers fast access to money on a short-term basis. Bridging loans are a temporary finance solution that can be secured on a property in instances when a mortgage cannot. Unlike a mortgage, bridging finance involves less red tape and higher interest rates, and is an attractive alternative for property developers seeking to complete renovation projects in a fixed time scale. The process can be sorted quickly and allows for up to 18 months of time to complete any necessary renovation projects.
Will my property be insured during the renovation?
Depending on the level of work you’re planning to do, most home insurance policies cover redecoration and DIY. There is a specialist home renovation insurance you can take out during the process to make sure you and everyone who is involved are protected. This will cover: public liability insurance, in case anyone’s hurt during the renovation, unoccupied property insurance, in instances where you can’t access the property for long expanses of time, alternative accommodation, which covers your living costs if you are forced to stay elsewhere, and building equipment cover, to protect tools and equipment left in the property in your absence. It’s important to ensure you’re financially covered and won’t be caught out by any unexpected costs during your renovation project – always speak with your home insurance provider to check where you stand before you begin any work.
Am I still liable for Council Tax during the renovation?
If the house is uninhabited and/or uninhabitable, it can be exempt from Council Tax while you’re completing your renovations. Your local council will inform you when you have to start paying Council Tax. Properties that remain empty and unfurnished for more than six months, however, are entitled to a discount of up to 50% on the applicable council tax bill.
Should I provide furniture in my buy-to-let?
The decision to furnish your property really depends on what’s popular in the area and the kind of tenants you’re after – do some research, speak to us here at Zest , and have a think about who you’re going to be letting your property out to. People looking for fully furnished properties are likely to be students, young singles, or corporate workers on secondments who need a home for a shorter period of time. You might be able to charge more for fully furnished short-term lets, and you can always reuse your furnishings for multiple tenancies.
What happens if the renovations go over budget?
Setting a budget before you begin your renovations is key to ensuring a smooth, streamlined process, but sometimes unavoidable costs will crop up along the way. It’s a common problem to encounter, but don’t panic – you can always opt for alternatives like using cheaper materials, applying for more funding, reducing the project scope, or breaking down the building works into phases.
Beth Perry | Feb 22Read more
Beth Perry | Jan 22Read more