Owning a rental or investment property is a great way to generate additional income. But before you can start collecting rent, you need to remodel the home and bring it up to code. This process can take time and money, but the payoff can be great.
Remodeling a home for rental or investment property can be broken down into five steps: assessing the condition of the home, creating a plan, budgeting, sourcing materials and labor, and managing the project.
Assessing the Home’s Condition
The first step in any remodeling project is to assess the overall condition of the home. Inspect the interior and exterior of the property, check the plumbing, and thoroughly examine the roof. Make note of any repairs that need to be done, such as electrifying old outlets, replacing a leaky faucet, or replacing old windows.
Creating a Plan
Once you have a good understanding of the condition of the home, it’s time to create a plan. You should decide what changes to make and how you want the finished product to look. Typically, rental and investment properties need to appeal to a wide range of people, so keep things neutral.
Budgeting
Create a realistic budget for the remodeling project, taking into account the cost of materials and labor. Don’t forget to account for additional cost such as permits, insurance, and other associated fees.
Sourcing Materials and Labor
The next step is finding the materials and labor to complete the project. Research local suppliers and contractors, compare prices and read reviews, and make sure to get at least three bids before making a decision.
Managing the Project
Managing the project is key to ensure it runs smoothly and on time. Regularly inspect the work to make sure it meets your specifications. Make sure to communicate with the contractor and keep an eye on the budget.
Remodeling a home for rental or investment property can be time-consuming and costly, but it can also bring in a steady stream of income. Taking the time to properly assess the property, create a plan, budget, source materials and labor, and manage the project can mean the difference between success and failure.