Whether you’re remodeling your rental property unit to increase its value or because it’s outdated and needs repair, planning ahead is a must. Without research, forethought and the right approach, you can end up over budget and unsatisfied by the time you’re done.
Don’t put decisions off
When you’re in the midst of a home remodel, you need to make decisions effectively and quickly. Some discernment is necessary, but if you wait too long, you could end up delaying the whole project’s timeline. For example, if you don’t decide on flooring in a timely manner, your timeline could end up off by weeks between the work stoppage and the ordering and delivery of what you eventually decide on. Plan everything out ahead as much as possible so you’re not scrambling around at the last minute.
Decide what you need
Whether your inspiration for your unit is old-school nostalgia or that new modern look, make sure you take a close look at what you want versus your budget. That fancy wall work you’re thinking of, for example, may have to go if your property has an issue that would make installing such a feature really expensive. You may have to compromise on some of your ideas, but always keep in mind that that space needs to be functional for tenants and cost-effective for you.
Have a rainy day fund
Even if you’re the ultimate authority on budget planning, you can’t foresee every possible project snag that could end up costing you. Sometimes, remodels can even bring property issues to light that you never knew you had, and you could end up spending extra money fixing those, too.
Set up a fund that is separate from your budget to weather project variables and other unexpected costs. The amount of money in this fund will depend on your finances and your research into possible problems associated with the type of remodel you’re doing, but it’s better to set aside as much cash as you can than it is to be caught unprepared.
Work with needs and wants
Your remodel should be a mix of needs and your style preferences for your rental. It’s important that the space is functional and appealing to your tenants without costing too much, so you might have to find that balance between what you need and what you want.
A remodel may be just the ticket for your rental space provided you have a complete plan in place. Do your homework before starting to ensure the best possible outcome for your project.