The raft of tax changes introduced by the Chancellor has led many buy-to-let landlords to review their existing rental portfolios, in order to maximise their profits.
While some choose to offload their property, others have explored the opportunity to incorporate. However, many have made the decision to either refurbish or extend their rental investment.
Of course, carrying out refurbishments to your rental property can lead to real opportunities to raise both the capital and rental value of your home. Many expenses associated with refurbishing a buy-to-let home will be tax deductible and could be treated as repairs or capital expenditure.
A good refurbishment job will not only increase the value of your investment but will also cut down on longer-term maintenance costs. This will also stop you from having to claim on your landlord insurance and help keep quality tenants for longer.
You must be mindful however of some key do’s and don’ts when making renovations to your rental property:
Do think about your target market-Consider who you want to attract to your property and make any changes accordingly. Should you want to appeal to a family, make sure the gardens are tidy and clean. Young professionals will want suave interiors with a unique appeal.
Do–focus on the kitchen and living room-These are the rooms in which your tenants will spend most of their time, so make sure you focus your energy into making them special!
Do think about first impressions-Would-be tenants’ first impressions of your property could already convince them to not take the process further. As such, make sure the front of your property is appealing. Weed the garden and paint the doors and fences.
Don’t overspend-Make sure that before you even start to proceed with any renovation work, you have a sound budget. Work out your rental yields and the end value of the property post rent-then work back from this to give yourself a surefire budget.
Don’t underestimate the importance of a good architect or interior designer-Enlist the help of the professionals. They will be able to give the property a real makeover!
Don’t forget to let there be light-A property full of dark coloured walls and accessories will look dull and uninspiring. It is good practice to paint the walls a light colour, or mix darker shades with lights or lamps.
Don’t neglect unused space-Think about what your target market will require and try to maximise your property accordingly. A young professional for example would appreciate a study whereas a student will need a desk in their room.