Why Renovating Your Investment Property is a Good Idea
Having an investment property entails a lot to it and upkeeping it can be a daunting task. It might be worth your while to renovate your investment as it can bring you some great results, and here are three reasons why:
1. Improving your assets
If you've had your property for a while, it might be a good idea to renovate as it can improve your asset in the long run. By adding an extra bedroom, doing up the kitchen, replacing faucets, upkeeping the garden, changing old carpets, or adding a fresh coat of paint, you can enhance your investment for the better. While it's good practice to freshening up your investment every once in a while, as a general rule, you shouldn't spend more money on renovating your investment property than the yield you receive on it.
2. Attracting and retaining quality tenants
Your efforts to improve your investment property will pay off by attracting quality tenants and encouraging them to live there for a long time, which will cut down on vacancy costs. It can be tricky to find a good time for renovations, but usually freshening things up in between leases works best. If your property currently has tenants, minor works like updating appliances or allowing pets in the property will help retain them longer.
Something all property investors aspire towards is to have consistent rental yield. By renovating your investment and retaining your tenants, the overall percentage of your rental yield can increase as a result.
3. Nurturing your capital growth
By renovating, you can artificially boost your property's value without waiting for it to appreciate overtime on the market. If you decide to sell your investment property, properties with recent renovations usually sell at a higher value.
Other factors can influence the desirability of your property. Download a free investment market analysis report to check how your investment property is doing or click here to see how a CMA can benefit your search for your next investment.