Historically, landlords who would rent out their space to renters had limiting levels of rent control set in place.
Usually, this meant that landlords couldn’t increase their rent by the limit set by the state’s government.
As a result, there were little incentives for landlords to maintain and keep their beautiful apartment spaces in tidy conditions as they couldn’t even charge more than the limit.
Today, however, most states will allow their landlords to increase their rent to an acceptable market level meaning the more value you put into your spaces such as your kitchens and bathrooms, the more value you can get out of it.
This brings us to our topic on why landlords should remodel their property.
When landlords are considering to remodel their space, they might be nervous at first. The good news is that there are plenty of benefits that come with remodeling an apartment!
The investment in remodeling an apartment often makes landlords hesitant to begin. Investments cost money but in most cases you have to spend money to make money.
Now that the market can decide how high or low an apartment rental fee should be, it’s up to the landlord to make their spaces look attractive to potential buyers.
Remodeling an entire apartment space can be costly. Don’t worry though, the return on this investment will be worth it in the long-run.
Investors from around the world have claimed that making even small, minor renovations to your apartment can allow one to charge 10%-20% higher rent to tenants.
You can sit down to calculate the ROI on a long term project before making a decision to remodel. In some cases, hiring a financial advisor an help you make the most educated decision about hiring a contractor.
In most cases, smaller remodeling projects can have a big effect on pricing. Instead of tearing down the entire kitchen and replacing, think about making smaller changes like replacing the cabinet wood.
In most cases, you can fix the damage up by only replacing the worst areas of disrepair rather than the whole.
Think about how a little can go a long way. Also keep in mind that whatever the remodeling costs may wind up being, you can usually make that money back in as little as five years by increasing monthly rent by a small amount.
On top of that, you end up with a space that is more attractive to buyers. The result is that buyers are willing to dish out more money for the newly refurbished space.
Another great advantage of remodeling versus replacing is the ability to decide how much to remodel.
With replacing, there aren’t many options for scalability. When refurbishing, however, you don’t need to pay for a whole new appliance. You only need to pay for what you refurbish.
Fixing an apartment building unit-by-unit can significantly increase the value to investors while keeping you within your budget.
In certain cases, it may be more financially feasible for you to scale up instead of down for discounting reasons.
If you are looking to remodel, some contractors will offer a discount for remodeling multiple rooms versus just one room. In these cases it may pay off to hit multiple rooms at one time.
It’s important to be aware of the supply and demand of available contractors. Having some knowledge of what the current remodeling trends are can help you get a sense of the materials and resources used for popular projects.
Depending on your location, the demand for remodeling contractors can be either very high or low. Whatever the demand is it will end up affecting the price you’ll pay for services.
It’s hard to say for sure when the best times are for a remodeling project. Normally, landlords like to remodel during the warmer seasons, like Summer or Spring.
However, demand for remodeling can be high during these times, limiting the number of resources available to contractors.