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Renovating a commercial
property for profit isn’t about painting walls and watching the returns roll
in. It is about analyzing and prioritizing repairs, maintenance, and making
improvements against a sensible budget to add value to the property in the long
run. Having said that, budget planning and resource allocation are not rocket
science either!

Here are some helpful tips to set you up for a successful renovation project.

Set of 5 Pieces (1 Double Bed Sheet + 2 Pillow Covers +2 Cushion Cover)

1. Be Realistic with your Renovation Goals

Going with your gut
feeling is a good thing but when it comes to investing your hard earned money,
take emotions out of the equation. Be watchful of trends in your industry and
look for improvements that are most likely to add value to the property.
Changes that don’t fit the description are useless, no matter how fancy they
are.

2. Renovate Around your Target Audience

The best way to go
about multifamily property renovation is to give your audience the center
stage. Think around the preferences of your target audience and keep design
choices neutral not personal. Study the market, know what your competitors are
offering that your property lacks, keep track of multi family renovation trends in the industry, and learn what your target audience
demands out of a rental unit. Tailor make the improvements to suit your target
market, whether renters or buyers. Contemporary kitchens with kitchen islands
are in demand and an addition you should consider for your units. In addition,
most renters have pets and having some provisions for pets makes your property
more appealing.

3. Budget Like a Hawk

Aim at getting the most out of your
investment, put a budget in place to make sure that your expenses are met
within the set limit and the return on investment is worth  your outlay. Your budget must include:
●      
Total cost,
including solicitor fees, and pest and building inspection
●      
Renovation
costs
●      
Interest
repayments during the project
Most importantly, there
should be a provision for a contingency fund to meet any unexpected
expenditures during the project.

4. Do not Over Capitalize

In an attempt to receive high returns on
investment, many property owners commit the mistake of over-capitalizing on the
renovation. Renovation should be done keeping in mind the expected returns on
the expenses incurred.

To prevent overcapitalization, here are some factors that property owners must
keep in mind:

●      
Use premium
quality materials only.
●      
Keep labor
costs low by establishing a fixed time frame for the renovation.
●      
Spend less
on cosmetic renovations.
●      
Focus on
areas that play a key role in influencing rental decisions such as the kitchen
and bathrooms.

Overcapitalization results in limited gains
and often in losses. It provides nothing more than the visual delight of seeing
expensive decor. It is, therefore, important to avoid over capitalizing to protect the investment value of the property.

5. Let the Exteriors do the Talking

Whether you are renovating to sell the
property or to enhance the market value of your property, give the exteriors
some serious consideration. Give a wow appeal to the exteriors by adding a
colorful garden, beautiful sidings (if your budget allows), and manicured lawn.
Half of the buying or renting decisions are made after looking at the aesthetic
appeal of the property.

The Bottom Line

Renovating for profit is
the ultimate goal of multifamily property owners. Property owners and managers
need to analyze all renovation aspects ranging from repair, maintenance, to
improvement to ensure sensible investment. When hiring a professional
renovation contractor, make sure you have an investment plan in place along
with an outlined budget and the processes involved. Hope this brief read gives
you a basic understanding of how to turn a profit from your housing renovation
project.