When it comes to renovating rental properties, there are generally two approaches that can be taken. One is performing a large-scale renovation, which may warrant an increase in local rent charges by a percentage specified in a commercial lease agreement; or the other is taking on smaller projects without having to charge rent increases, which could result in no improvement to local demand for the property.
Is the Property Currently Vacant?
Consider whether your property needs to be cleaned or rented out before any repairs begin. We understand that condo owners will sometimes want to undertake extensive renovations and this can lead people to prefer undertaking the works with their units unoccupied, but it is usually safer for your sake and for the sake of your renters if you simply clean everything first!
Renting a property to tenants can lead to decreased revenue if the renter is not living there during renovations. Another issue with conducting a renovation in an occupied home is that homeowners might run into trouble when working on their project and then having to go back and fix what they don’t finish because it becomes harder to work through contact and you need to be mindful about communicating your plan for getting things finished. Any inconveniences you cause may lead tenants to reconsider re-renting your rental home when their term expires so we recommend waiting until between lease agreements so residents are not living in the apartment while the renovation takes place, especially if they have a long-term lease or several years left before expiring.
Can You Complete the Renovation Quickly?
Most property agencies in Jacksonville can offer you some advice on what to do if you find that there’s extensive damage, or even better, may know of a legitimate contractor who can help rectify the problem. Anything from water and electrical damage, kitchen renovation necessary after an apartment fire, smoke and soot from use of fossil fuels (stove, cigarette) can cause immense amounts of damage over time. There are a lot of stories out there about renters doing minimal fixes to make their space aesthetically pleasing but still being fined for being illegally housed as well as suffering longer than normal wait times for things like furniture. If anything other than minor cosmetic changes is required – talk it over with the landlord first. Talk just like any major changes require communication before moving into the area – it’s pretty much impossible to expect something will not state you’re locked out on the day they want entry to your place.
Depending on the costs of extensive upgrades, a property manager will most likely tell you that you should price your home out of the competitive market—leaving you with a nicely updated rental that isn’t attractive to new paying tenants who want to overpay to live in it.
Is It Necessary?
Home improvement projects can range from critical to cosmetic and everything in between. Whether you are working on an investment home for rent or your personal residence, upgrades must suit the property’s purpose and ensure that guest, client, or tenant will enjoy living in them. Passive appeal is important, so focus on aesthetics that are pleasing to all parties, with special consideration given to renter demographics. Top upgrades include building in safety features with a professional touch to keep fire detection systems running effectively, installing new flooring as needed (especially in laid-back areas where sticky floors may be prone to accidents), replacing kitchens with contemporary designs and appliances that fit the aesthetic of the overall modern space being improved upon, and using energy-efficient appliances wherever possible.
“Luxury” upgrades you may make to the rental residence might just be nice decorations, but they can sometimes get in the way of the tenant’s lifestyle if he or she has dreams of living somewhere else some day. For example, if you add a swimming pool that requires maintenance or tear out and replace all of the kitchen appliances, this could be a deterrent for a renter who might want to own their own home one day.
What Is My Anticipated Return On Investment?
Jacksonville property management companies know that updates and renovations can justify a rent increase when comparing to homes with similar features. But before inquiring, it’s vital to keep costs in mind especially since looking at possible renovation costs could get overwhelming and if you are planning for a renovation project, you should be prepared for the costs that come with it. Here’s what you need to consider: materials, planning, contractor costs and income loss during construction.
If you have an upgrade in mind, but you’re not entirely sure it’s going to pay off, enlist the help of a Jacksonville property management company. These companies will be capable of giving your project the monetary analysis that it needs to determine if further action is necessary. Additionally, getting in touch with the right company may also mean that you’ll be able to find great contractors and get assistance making your fixes.
Will Renters See Any Benefits?
As a property owner, you want to make your rental stand out from the rest. The goal of any upgrades should be to benefit both your renters and your own bottom line. Check out what other rentals in the area have done with their properties, speak with experienced property management professionals, and talk about long-term plans for your property. Large communal appliances can add value to an otherwise standard rental unit and also help keep long term renters coming back time after time!
Work With a Jacksonville Property Management Company to Plan Renovations
Renovating can be a great way to improve your bottom line – but you need to consider the timing. For example, if you renovate a property during the contracts with tenants are about to expire then it is likely that they won’t want to stay on. Therefore, you’ll have a tough time getting new tenants in there pronto and your renovation may turn out to be futile. Aside from considering the right timing, you also need to find experts in renovation who know what they’re doing. It’s smart to hire professionals who have proven themselves in this line of work before!
There are many Jacksonville, FL, property management professionals you can choose from who promise they will help with any project. However, we want to make sure people know there are just as many professionals out there that don’t deliver as promised. Spectrum Realty Services utilizes experience and knowledge of what property management projects entail so we can provide the best services to our clients possible at all times. Whether you need help planning or executing a timely renovation project or handling day-to-day business operations for your properties, our Jacksonville property managers will be able to get the job done with minimal disruptions in tenant occupancy, and keep costs down by avoiding unnecessary expenses related to repairs, improvements and other matters involving your rental properties. So don’t waste your time searching around – focus on what’s important – please contact us today!
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