Many landlords go into the real estate business with the plan to be a DIY landlord, to not only save on costs but because they enjoy the hands-on work.
Now, before you rent a property, or even purchase an investment property, seek the advice of local experts such as property valuers in Adelaide to ensure your renovations are in line with the demand of the local market. This can help you plan and make the most of your investment.
For all those who are eager to own and maintain a DIY rental renovation property, here are some dos and don’ts to keep in mind.
Do your research
Before you start knocking down any walls or buying truckloads of expensive materials, it is always best to do your research. Knowing exactly what is required of a project and having a well-informed strategy before you begin can save you money and added stress in the long run.
Identify the work that needs to be completed and its priority then start the research process to adequately plan your approach.
Don’t underestimate the cost
It is well known that renovations are expensive and DIY renovations are no different. While they are more affordable and often timesaving, DIY renovations come with risks and the potential to become more expensive than you anticipated.
Make sure to have a comprehensive budget before you begin. Know what you can afford and what you cannot. If a project seems out of reach financially, then you may need to postpone, adjust your strategy or consider a separate investment property.
Do know when to call in a professional
Some work may be more complicated than it appears. Any wrong move could cause future issues for yourself and your tenant. Before you begin any DIY project, confirm whether this is a job best left to the professionals.
Most small improvements such as painting and cabinet replacements may be completed by a DIYer however electrical work, tiling and complex plumbing, more often than not, are jobs that require professional hands.
Don’t skimp on quality
When it comes to DIY properties, many investors or renters worry about the quality and for good reason. Some DIYers are inexperienced, and others are so budget conscious that such things as good quality materials and labour are skimped on to save money and increase profits.
The downside to cheap work is that it may end up costing more in the long run. In the best-case scenario, the materials may be more susceptible to wear and tear due to the quality, in the worst, critical issues may be caused which require a complete teardown of your work and a more costly fix later. Better to spend a little more early into your investment than to pay big time and lose thousands later.
Do leave room in your budget
With any renovation, there is the possibility of unexpected issues and complications to arise. This can be as small as materials costing more than expected or as something large such as the discovery of structural issues or biohazards during the renovation that requires urgent attention for legal and safety reasons.
This can be quite the costly expense that was unplanned for. Here, having more in your budget than you plan to use can be the salvation you need. Remember: only use this money in case of emergency, do not consider this as part of your general budget until you are late in the renovation process. Leftover funds in your budget can be used as rainy day funds and for maintaining your rental property.
Don’t follow social trends
There is a rather large community of DIYers on popular platforms such as Pinterest, Instagram and Tik Tok. As such it is easy to be enticed by trending DIY projects and to get started on them right away on your rental property. After all, these trends usually come across as easy, affordable, and attractive. However, these trends may not have any long-term appeal and worse yet, could potentially lead to issues or added wear and tear down the line.
Feel free to take inspiration from social media but think carefully before you excitedly follow a recent trend.
Do keep it simple
As the end product is a rental property, it is best to keep things simple. This not only leads to an easy-to-maintain residence, but it leads to a broader appeal for your investment meaning you are more likely to find a tenant.
Keep to simple colour schemes and avoid bold colours when choosing paint for your walls. This makes it easier for touch-ups between tenants too if you have run low on paint and need to buy more. Simple but good quality floor and counter materials also make for better long-term maintenance and aesthetic appeal saving you from having to complete major improvements after each tenant.
The general rule of thumb is the keep the design of your investment property simple and to avoid catering to your own personal preference.
Don’t forget about street appeal
Now the outside of a rental property is just as important as its interiors. The street appeal of a rental forms the first impression in the minds of any potential tenants. While some improvements may be unnecessary and costly, small things such as a pressure wash and/or paint job can go a long way to attracting the attention of potential tenant.
If there is a garden and/or lawn, make sure that it has been tended to before any open days or visits from potential tenants. As with the interiors, make sure to keep any landscaping and gardening simple for easy maintenance.
Do hire a reliable valuer
As previously mentioned, a property valuer can be a valuable expert to have in your corner when renting out or planning to invest in a DIY rental property.
They can complete a thorough report of the property and outline its potential and any risks to be aware of. A valuer’s report includes a summary of local market trends that can help with deciding on worthwhile renovations and whether a property is worth the investment.
Aside from a pre-purchase valuation, property valuers can also perform rent reviews so that you can ensure you are charging the right amount of rent following your renovations. A rental assessment from a property valuer allows you to charge a rental fee that accurately reflects the true market value of your DIY rental property.
To learn more about valuing rental properties in Adelaide and South Australia, call your local property valuers.