Real Estate

Quality Real Estate Investment Tips

Author: Kelp28

Top 9 Ways to Save on Your Renovation

Renovating a property can add value in a short space of time if it is done correctly. Here are 10 tips to make the most from your reno. If you’re an investor, renovating a property an deliver a significant return in a short space of time. Overspending on projects,however will simply eat into your subsequent rental and sales dollars, reducing that healthy profit.

10 tips to make the most from your renovation

If you’re an investor, renovating a property can deliver a significant return in a short space of time.

Overspending on projects, however, will simply eat into your subsequent rental and sales dollars, reducing that healthy profit.

It is therefore crucial to know where you can make savings. Here are our top 10 tips that will help you rein in your reno dollars and maximise your profits.

Shop Around – Take your time to find the right item at the right price. Look around in second hand stores, on eBay or online auction houses for great deals.

Focus on visible items – Visible items can increase value with just a small outlay. By adding small improvements such as blinds and door handles you can make a real impact on your ultimate selling price.

Use DIY labour – While many investors prefer to be ‘hands off’, using your skills and effort during a renovation can push your budget further by reducing labour costs – which can form as much as 50 per cent of the budget.

Fix rather than replace – Resurfacing or repainting existing kitchens, cupboards and bench tops can create great savings.

Consider professional advice – Free and low-cost renovation classes can be an excellent way to draw on the skills of the professionals.

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Buy imitation brands – cheaper copies of designer label products can give your property a luxurious look without the luxurious price tag.

Plan carefully – Investors often charge into a renovation without a steady plan and this can lead to extra but avoidable costs. Taking samples of colours and surfaces with you when shopping and calculating correctly can help avoid wasted money.

Buy in bulk – Consider buying all of your products and materials in one go in order to secure the maximum number of discounts.

Never underestimate a good clean – Cleaning a property brings ‘instant brightness’ and can cost investors far less than a paint or varnish job.

Managing Your Property Chores

Many investors underrate the value they add, but a good property manager can play a pivotal role in the success of your investment. Many Australians have barely enough hours in the day to manage their own households, with work, kids, groceries, home maintenance and other chores to attend to. But once you purchase an investment property, you are responsible in many ways for managing your tenants as well.

How Can a Property Manager Help?

Many investors underrate the value they add, but a good property manager can play a pivotal role in the success of your investment.

Many Australians have barely enough hours in the day to manage their own households, with work, kids, groceries, home maintenance and other chores to attend to.

But once you purchase an investment property, you are responsible in many ways for managing your tenants as well.

If you would rather not deal with the day to day chores of renting out a residential investment property, you may want to consider using a property manager.

Finding the right one is crucial since their responsibilities will be wide ranging – from liaising with tenants to keeping your property safe and secure.

What Are Your Expectations

First, you will need to consider your expectations for your property manager’s roles and responsibilities. Depending on how much time and money you want to commit, there are two options: a leasing only or a leasing and maintenance agreement.

As with all investing issues, the next step is to do your research. Find out the rental amounts for properties in the area where your investment is located, and familiarise yourself with relevant tenant-landlord laws. Note that these differ from state to state.

Do Your Research

Next, speak to property managers at several real estate agencies and see how they respond to your questions. Do they reply quickly or do you have to wait days or weeks for a response? This is a good indication of what your future relationship will be like.

See if you can get some recommendations from people you know who may have investments or from some of the property professionals who are already advising you.

Always check how many properties the agency and each manager has responsibility for. Most industry professionals suggest that no more than 100 properties should be managed by one person if they are to provide an adequate level of service.

Understand What They Do

It is also important to check the property manager’s processes. How does the manager go about finding new tenants? What kind of background checks do they complete? And how do they handle disputes with tenants?

Before you enter into an agreement with a property manager, make sure you thoroughly read your rental agreement. Make sure you are able to release yourself from the relationship if they are not doing a good job.

Finally, be sure to keep in regular contact with your chosen manager for at least the first 12 months to ensure they are doing everything possible to make your investment successful.

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