Should I renovate my buy-to-let?
Posted in Industry News on 19/02/18
Before you do anything, you must look closely at the numbers. While a fresh lick of paint won’t cost much, and can really spruce up your property, a brand new kitchen can set you back several thousands of pounds, so it is important to get the maths right and ensure that any renovation work you do will be worth it in the long run.
Most commonly, adding a loft extension is the fastest way to add value and create extra space. In a buy-to-let property this increases occupancy, so you could charge a higher rent. It is, of course, also important to look at the time any proposed upgrades will take. Can you afford for your property to be vacant for three or four months? This void period needs to be taken into account when you are calculating how long it will take to recoup your investment.
It is crucial that any costly renovations also boost capital value. For example, if you renovate a run-down property, you may add a bit to its value, but if you can add an extension and increase capacity, you will likely dramatically increase the value of the property – as well as being able to charge a higher rent.
Before you do anything, you should check the market and current rental valuations – that’s where we can help. We know the ins and outs of the Angus private rental market, and we can help to advise just how much you should spend renovating your property, and what you should expect to get in return.
If you are thinking about upgrading your buy-to-let then get in touch.