GETTING STARTED WITH RENOVATIONS: A Comprehensive Guide
Renovating your home can be an exciting and rewarding experience. Not only can it give your rental a much-needed facelift, but it can also increase its value and help attract quality tenants. However, it can also be an overwhelming process, as there are many factors to consider and decisions to make. This guide will provide you with a comprehensive overview of all the steps involved in getting started with home renovations.
INTRODUCTION TO HOME RENOVATIONS
For most investors, renovations are a major investment. Whether you are renovating for aesthetic reasons or to improve the energy efficiency of your property, it is important to understand the basics of renovations. This section will provide an overview of the different types of renovations and the key considerations to keep in mind when embarking on a renovation project.
First and foremost, it is critical to understand the scope of the project and the overall cost. Depending on the type of renovation, the cost can vary significantly. For example, if you are planning to do a kitchen remodel, the cost will likely be higher than if you are planning to paint a room. It is also essential to understand the timeline and what steps will be involved in the renovation process.
Another important factor to consider is the potential return on investment. Depending on the type of renovation, you may be able to recoup some of your costs if you decide to refinance it (BRRRR) or sell it to another investor who wants a turnkey investment. For example, a kitchen renovation can typically yield a higher return on investment than a bathroom renovation.
ASSESSING YOUR HOME FOR RENOVATIONS
The next step in the renovation process is to assess your property. This involves taking an inventory of the current condition of your property and identifying any potential areas that need to be addressed in the renovation. For example, you may need to address structural issues or plumbing issues. It is crucial to look for potential problems and address them before they become more serious.
In addition to looking for potential problems, it is also important to consider the layout of your property. This includes looking at how the rooms are laid out and how they could be improved through the renovation. You should also consider the size of the rooms and how much space you will need to complete the renovation.
The aesthetic of your property will also play a major key point to consider when renovating. This includes looking at the colors and the overall design of the home, as this will help you to determine the type of renovation that would be most appropriate for your property.
PLANNING AND BUDGETING FOR A RENOVATION
Once you have assessed your property and identified any potential areas that need to be addressed, the next step is to plan and budget for the renovation. This involves creating a detailed plan that outlines the scope of the project, the timeline, and the budget. Being realistic with your budget and planning for any unexpected expenses is a must.
When budgeting for a renovation, it is important to have money allocated to contingency. This would be for issues that are hiding behind walls or flooring. You don’t know what is hiding behind the wall and carpets!
In addition to budgeting for the renovation, it is also crucial to consider the timeline for the project. This includes setting realistic goals for the completion of the project with a timeline that allows for any unexpected delays.
Finally, it is of great importance to consider the potential disruptions that the renovation may cause. Depending on the scope of the project, it may be necessary to temporarily relocate your tenants while the renovation is taking place. Being proactive will play a major role as you may need to plan for any potential disruptions and make any necessary arrangements ahead of time. Ideally, it is best to renovate when the property is vacant (plan for a longer vacancy time during the renovation).
FINDING THE RIGHT CONTRACTOR FOR YOUR RENOVATION
Once you have completed the planning and budgeting for the renovation, the next step is to find the right contractor for the job. This is a crucial step, as the quality of the work will depend on the contractor you hire. It is important to research potential contractors and to read reviews from previous clients.
When hiring a contractor, it is essential to discuss the project in detail and to check out their website and look for reviews. It is also necessary to get a written contract that outlines the scope of the project, the timeline, and the cost. This will help to ensure that the contractor is aware of all the details of the project and that both parties are clear on the expectations.
Finally, it is important to ensure that the contractor is properly licensed, insured, and bonded. This will help to protect both parties in the event of any unexpected issues that may arise during the renovation.
CHOOSING THE RIGHT MATERIALS FOR YOUR RENOVATION
Once you have hired the right contractor, the next step is to choose the right materials for the renovation. This includes selecting the type of paint, flooring, and fixtures that will be used.
When selecting materials, it is important to consider the quality of the materials. This includes looking at the durability of the materials and the potential health and safety implications. Make sure to consider the cost of the materials and to look for ways to reduce costs without sacrificing quality. Keep in mind that you should make these decisions based on the fact that this is a rental property. Pick materials that will last longer with rentals. It is important to talk with a contractor who is also an investor and bring your property manager into the conversation. They would have some great input for choosing the right materials.
SETTING A TIMELINE FOR YOUR RENOVATION
Once you have selected the materials for the renovation, the next step is to set a timeline for the project. This includes setting realistic goals for the completion of the project and any potential delays. Be sure to remain realistic with the timeline, as unexpected issues may arise that could delay the completion of the project.
Finally, it is important to factor in any potential delays that may arise due to weather or other issues. It is critical to be prepared for any potential delays and to adjust the timeline accordingly.
Keep in mind that delays in the project will delay your property from being marketed and rented out.
WHERE TO START
When you are doing major renovations, you want to start from the outside in. I always tell our clients that we want to make sure the outside (roof, siding, windows, and gutters) are solid and are keeping the elements outside of the property. If you start on the inside and you have a bad roof or siding, you may end up having to redo some of the work after a heavy rain storm. Once you know your outside is solid, begin working on the interior. Some ideas for interior renovations are to take out all the carpet and replace it with waterproof LVP flooring (great for tenants and pets). New or painted cabinets with a new countertop to give the kitchen a fresh look. Replacing lights with an LED light package. Low flow toilets in the bathroom with a painted or new vanity and a reglazed bathtub. It will also be good to consult with your property manager to understand the best finishes for the neighborhood your property is in.
DEALING WITH COMMON RENOVATION ISSUES
When it comes to renovations, there are a variety of potential issues that can arise during the course of the project. It is of great importance to be aware of these potential issues and to have a plan in place to address them.
One of the most common issues that can arise during a renovation is the discovery of hidden problems. This can include structural issues, plumbing issues, or electrical issues. It is indispensable to have a plan (and a contingency fund) in place to address these issues if they arise.
Another common issue is a disagreement between the contractor and the homeowner. You must communicate clearly and openly with the contractor to avoid any potential conflicts, and ensure that the contractor is aware of any changes that may be made to the project. Be sure to get them in writing before the contractor works on those changes.
CONCLUSION
As we mentioned above, home renovations can be a daunting process, but with the right preparation and planning, it can be a rewarding experience. This guide has provided a comprehensive overview of all the steps involved in getting started with home renovations, from assessing your home to choosing the right materials for the project. It is important to consider all the factors involved and to be prepared for any potential issues that may arise. With the right preparation and planning, you can ensure that your home renovation project is successful.
If you are considering undertaking a home renovation project, it is essential to keep these tips in mind. It is also important to do your research and to find the right contractor for the job. With the right preparation and planning, you can ensure that your renovation project is a success. For examples of some rental property renovations, check out our website.
If you are interested in learning more about Elevation Construction (and maintenance), check out our website at www.elevationconstructionteam.com or call us at (425) 633-2416. Elevation Construction can help you with any renovations on your rental property and we can help you with your maintenance work orders!