A good way of adding value to your let is to think about an extension. If you’re letting a smaller property an extension is a good way of generating some extra space and even in larger properties extensions can add a new dynamic to your property; a games room or playroom might be the deciding factor for a family looking for a new place to live.
What do you need to consider if you’re thinking about extending your property?
Where am I adding value?
Extensions don’t come cheap and you’ll need to think about how your extension is contributing to either the value of your property overall or how it’s improving your rental income. A larger property should attract more rent monthly and you should reflect this in your price. Make sure you seek some advice on how best to improve your property; adding extra bedrooms is almost certain to generate more value but adding an outhouse or a conservatory might not add quite so much.
You’ll need to apply for planning permission for most extensions in the UK and the process for this can be long and arduous. It’s best to apply as soon as you can and be prepared for your application to be turned down. It’s wise not to start work until your confident your application will be successful.
Your timing is all important when it comes to making an extension. It may be something you can do while you have tenants in but noise and dust aren’t great neighbours and tenants are unlikely to want to share with a building site. If your property is likely to be unoccupied while you’re building you will want to think about protecting it with Unoccupied Property Insurance.
An extension is a good project and a long term way of drawing in different types of tenants. Make sure it will be profitable for you to invest in an extension before going ahead with any work and be prepared to battle for your planning permission; it’ll be worth it in the end.