We have observed an increasing number of property owners who have turned to the rental market and therefore, rental property remodelling is becoming something of a hot topic in Malaysia. This is because renovating your property is one way to make money as an investor. And for property owners keeping an eye on the rental income, finding a good tenant in a short period of time is crucial to maximise rental returns as the longer the property is left unoccupied, the higher the burden for the owner.
By renovating your property before renting, you hit two birds with one stone. Here are 4 reasons to renovate your home before renting in.
1. First Impressions Matter
Many landlords in Malaysia choose not to renovate their rental property as they assume that it requires a huge amount of investment to hire an interior designer and contractor. As a matter of fact, the renovation does not have to be a big budget project, minor touch-ups and simple renovations can bring amazing results. The most important aspect is to make sure the property looks pleasant and liveable. First impressions matter – what potential tenants see during initial viewings makes all the difference between choosing your property or moving on to other options.
2. Enhance the Returns on an Investment Property
Whether it is for long term leases or short-term rentals, a well-designed and fully furnished unit could fetch a higher rental than a bare unit with basic furnishings. With the younger generation, they do not mind paying higher rental if the unit fulfils all their requirements, both daily and lifestyle needs.
Nice interior design and home furnishings raise a property’s attractiveness and it could have a significant impact on rental or pricing. If you are renovating an investment property, the home renovations should be designed with a broad appeal in mind, focusing on factors that are likely to appeal to tenants. If property owners spend more effort and investment to create a good-looking home, it provides them with the chance to increase the value of the property and the rent that can be charged for it.
3. Old to New
As for owners of old houses in established areas, it is a good idea to renovate the property as over the years, it would have experienced wear and tears. An old home does not always look great, and spending time and money on renovating your property gives the house a new look and makes your home presentable. With maintenance and interior upgrades, property owners have a better bargaining strength when renting out their properties.
Consider giving the property a facelift with renovation works such as changing old bathroom tiles or flooring, repaint or repair ceiling, replace fixtures, repainting the entire property and upgrading the kitchen. The most important is to have a well-maintained property in good condition, as these days potential buyers prefer to compare prices and conditions of the houses before deciding.
4. Avoid Future Problems
This is definitely something you want to avoid happening as a property owner. Imagine signing the contract with the tenant and a few days later, you are consistently receiving calls from the tenant complaining about the many problems that the tenant is facing ever since he/she have started living there. This will then affect negatively on you and your reputation.
For this reason, your home should not only look great, but also be liveable. With an interior and exterior makeover and maintenance, it simply ensures that these future problems are taken care of before the tenant moves in.
Conclusion – Yes, you should renovate before renting or selling, but don’t over-renovate
As sad as this may sound, it is important not to work along the same stringent standards you may apply to your own home. There is no point in over-renovating a property, such as adding upgrades and features that are not necessary to get the house sold. Truth be told, your tenants are not going to treat it with the same quality of care as they would with their own property. To them, it’s only a temporary home. However, if you are planning to make this your home in the future, you can treat renovation as a way of increasing long term value.
The property market is very competitive, but it does not take a heavily renovated house to attract potential buyers. However, with the right renovations and upgrades it could have a significant impact on rental and pricing. The most important is keeping your property in a good shape and make the place look homely and comfortable.
Struggling to rent out or sell your property? Come and speak with us on how to maximize the rental or sales value through design and renovations.