The point of an investment property is to make a profit. So, it makes sense to not spend loads of money renovating it, otherwise, you won’t see a significant return on investment.
Below are 5 inexpensive ways to add value to an investment property. Of course, inexpensive is a relative term here, as you’ll still have to spend some money on these.
1. Deal with structural issues
Issues like subsistence can be expensive to fix so this hardly qualifies as inexpensive. But, it’s too important to ignore. If you were aware of them when buying the property, hopefully, you paid well below the asking price. Make sure you discount the purchase price by AT LEAST twice your worst-case scenario cost to fix.
Then, consider investing this money back into the property by fixing any structural issues. When it comes for you to sell it on, you’ll automatically have a much higher asking price.
Fixing issues like mould (often easier than you think) and squeaky flooring can do wonders, too.
2. Make rooms open-plan
Open-plan living has been a hot trend for a while and won’t go away anytime soon. If the property’s structure allows it, consider knocking through between rooms. BE CAREFUL! Only walls that don’t provide any structural support. A structural engineer is the only one with the actual qualifications to decide, not your trusted builder.
The most obvious choice is a kitchen and dining room, but you can really do it anywhere. It’s not a very expensive job and can add a lot to the home’s appeal.
3. Renovate the kitchen
We spend a lot of time in our kitchens, and outdated fittings can reduce a property’s appeal. It’s not an expensive job but is one that most people don’t want to tackle.
Can you do this without spending too much? Replacing just the doors and drawer fronts is a great inexpensive way to freshen things up. Can you paint existing cupboards/tiles? I’ve even seen someone re-painting FLOOR tiles!?! Perhaps not one for a long-lasting solution but you get the idea!
4. Paint and carpets
You can go a LONG way with just paint and carpets. A fresh coat of paint works wonders and instantly makes the place feel and smell clean and brand new. Can you shampoo carpets? Either hire a machine (from somewhere like HSS) or pay a professional to do it and save thousands on the replacement cost. If that won’t cut it, consider replacing them. Alongside a paint job, new carpets/flooring can transform a dark, dingy property into something fresh and appealing.
To do either of these effectively, you’ll need to give the place a really good clean. Always a good idea so you know what you’re tackling.
5. Sort the exterior
Much like remodelling a kitchen, most buyers won’t want to tackle exterior renovations. So, add it to your list to improve the property’s value and selling appeal.
It could involve repointing brickwork, painting, and repairing cladding and windows. Alternatively, it could be as simple as adding climbing plants, replacing the number sign, or giving the house a name.
Adding value to an investment property often boils down to tackling jobs most people don’t want to do. Offering a clean, repaired home to buyers that’s ready for them to personalize is more about psychology than anything else.
But, making some simple adjustments and renovations will drastically increase a property’s appeal, meaning people will be willing to pay more for it.