Serving Palm Beach and Broward County
Call: (877) 589-3591
Request Information

Important Factors on Garnering Renovation Revenues

As a landlord, You might be aware that most expenses for renovation or restoration work are never regained. Especially since product and labor costs have escalated in recent years. Still, this inevitable activity has to be undertaken prior to placing any tenant. To further assist in pursuing such, here are some factors worth mentioning:

  1. Investment Returns

The existing and still effective rule of thumb, is that the smaller the renovation, the higher the amount of investment returns would be. Application of such would entail extensive consideration on what really has to be repaired or not. For example, you may opt to fix the entire kitchen and instead improve its decoration and function to make it inviting to potential tenants. At the same time, cabinets and counters must be prioritized as they could make all of the difference.

  1. Contingency Costs of Renovation

Always put an additional 10-20% on the estimated total remodeling cost for contingencies as there will be uncertainties that eventually pop up during the course of the construction. One may hope this would not be further spent, but it is still important that the budget for such is prepared.

Some of these contingencies would include the purchase of new tools, fuel for transport of materials, and other small expenditures that easily are forgotten. This is very true in the case of painting jobs as it would require tarps, tape, several brushes and rollers, maybe more!

Landlord Rennovations

  1. Hire the Experts for the Job

The right contractors would provide you with the right outcome for the right cost. Never make yourself believe that you can personally handle these matters, when such is not really the case. Take time to diligently search for them through referencing, reviewing, and quotation comparison prior to any funding acquisition. If time permits, require them to undergo bidding to see who can endure to the end.

For further guidance, you may require contractors to submit their construction methodologies. There, you will be able to detect who would not include very important activities such as vents or flashing installations. Their proposed materials might also be of sub-standard quality, and therefore has to be properly looked into.

  1. Know and Wisely Play the Market Game

Some fall into the belief that purchasing an old house and tossing various updates would generate more income only to realize that the prices never go as high as expected due to the undesirability of the location. One should learn that not all houses can easily be promoted or boosted despite how extensive marketing campaigns were implemented.

The best way to know if you have the right price for the right property is to rely on appraisals. Banks highly depend on such to determine home values. Condominiums also are valued based on the prices of recently sold units within the same vicinity.