Renovation of an apartment for rent
The rental real estate market is constantly growing, which means increasing competition among landlords. This trend forces to reduce the cost of rent, reducing profits and increasing the payback period. What are the ways out of this situation? Let's understand.
Factors affecting the cost of rent
- The area where the house is located. In the central areas of the city the cost of rent is on average 10-15% higher.
- ДомаType of home. In a modern building with the same location and renovation, the rent can be 25% higher than in older houses.
- Quality of repair. Good repairs can increase the cost of rent by 10-20%.
- Availability of furniture and appliances. The rental price of an apartment with quality furniture and appliances increases to 30% compared to an empty apartment.
For most modern tenants, it is important to have equipment and good repairs. Therefore, it is important to bring the apartment in proper condition, thereby increasing the amount of rent. The amount of funds needed for this is determined by the landlord, we will only give some advice.
Who is the tenant
It is very important to determine the portrait of the future tenant. To do this, evaluate the type of your home. Determine the position. If the house is on the outskirts of the city, then make expensive repairs in the apartment does not make much sense. The cost of rent will be slightly affected. People with great wealth are unlikely to want to rent such an apartment. If the building is located near the station, then your customers are business travelers, businessmen or tourists. Here you can profitably organize daily rent. In sleeping areas, your clients will be mostly young families or single people. So don't count on a big budget. The central areas provide room for maneuver. Here a lot will depend on the filling of the apartment itself. When your customer's image is ready, you can start planning repairs.
How much to invest in apartment renovation
Without proper experience, it is quite difficult to calculate the required amount that will have to spend on repairs. Here are some tips to help you:
- Soberly evaluate the available funds that you are willing to spend. It is better to make inexpensive repairs, but to meet in a short time and soon start to make a profit, than to make repairs for many months, gradually investing more and more personal money.
- Focus on the portrait of your tenant. Make repairs to become the people who will live in this apartment. It can be luxury appliances and furniture for high-income tenants or inexpensive but durable practical materials for middle-income families. The main thing is cleanliness and practicality.
- Use the help of specialists. The interior designer and foreman of the construction team will help you calculate the exact estimate and adjust the budget. We advise you to use the "turnkey repair" service. This will save you a lot of time and money.
It is believed that the effective amount of investment in repairs and equipment should be at the level of the cost of rent for 6 months.
Mandatory works and equipment
- Rough finish. To avoid accidents during the rental of the apartment, it is necessary to replace or at least repair all communications. It is very important to qualitatively perform floor screed and level the walls, because this is the basis for future repairs. It makes sense to make waterproofing of all "wet" areas in the apartment.
- Finish finish. Choose light tones and practical materials. Remember that you are not doing repairs for yourself. Neutral tones will suit almost all tenants, and practical, often inexpensive materials, can save you a good amount in the future.
- Furniture. You should not be tempted to rent an apartment without furniture. Demand for such housing is much lower. Let it be inexpensive but high-quality furniture that can be easily repaired and updated. Upholstered furniture is better to provide replaceable covers that can be washed as needed. The type and amount of furniture is calculated based on the number of rooms and occupants. Often, you can first get the necessary minimum, and then buy the furniture that will be needed by real tenants. Be sure to discuss this option with the tenants in advance, do not be confused by empty spaces and the absence of an object in the interior.
- Technique. Household appliances must be in good working order. It is not necessary to buy new ones. High-quality equipment will serve for many years and here you can pay attention to used or showcase options.
- Plumbing. Be sure to install quality plumbing, preferably with water sensors. This will protect you from the unexpected cost of repairing your own and your neighbor's home.
Summing up, we can say that in order to rent an apartment more expensive, you need to invest a certain amount of money and time in repairs. Fresh furniture, cleanliness and good appliances are the key to your success.