Renovating an investment property is a tough balancing act. You want to do enough to make it attractive to renters, but not too much that it ends up costing you more than what you’ll see in returns.

Look at your ROI
You want your property’s value to appreciate in all instances, so you have to pay close attention to your return on investment (ROI) and how much of those costs can be recouped with rental income.

Are Those Renovations Necessary?
Some renovations are necessary because a property is unsafe and/or uninhabitable. Issues such as rotting wood, leaky pipes, and untreated pest infestations can cause long-term damage to your property. Contaminants like mould and materials with asbestos, can post a health risk to a tenant as well, which is no good for you. These types of problems should be remedied immediately.

Low Maintenance
As an investment you want the reno’s to be low-maintenance, durable and easy to clean/maintain as possible. Good tenants want to feel that the space is clean and for example laminate fl oors are a good alternative to hardwood fl oors at a lower price point. Outdoors, making low-maintenance choices may mean incorporating a rock garden or native plants for landscaping. Less maintenance for the tenant also means less maintenance for you: no mowing the lawn or replacing materials frequently if they get damaged. Every property still needs a certain amount of upkeep, regardless of how you choose to renovate it. You want to make sure that the little things are taken care of, so that your time, energy and money can be saved for bigger ticket items such as the roof, heating and cooling systems or appliances.

Keep it Simple
Tenants are not going to respect a home the way you would. Don’t pay for new windows or over insulate if you are not paying the utilities. Balance your investment with your rate of return and future payback on your improvements. You want to work on items that are going to benefi t you in the future and items that are going to keep the property in good condition. Any questions feel free to call me I am here to help!

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