Choosing when to renovate a rental property can be a difficult decision. Many property management companies will tell you that some renovations are necessary, while others may not produce the desired result. When you're anxious to make property upgrades that could justify a rate increase, the wrong timing could leave renters frustrated and hurt your rental income.
It's important to ask yourself a few questions before beginning any project. Check out these insights from our Jacksonville property management team!
Is the Property Currently Vacant?
When considering the right time for property updates, the first question is: is the rental occupied? Renovating a Jacksonville, Fl property when it is vacant allows for the best results (and happier tenants)!
With a vacant property, renovations can be completed as needed, and you'll avoid incurring extra costs from renters needing to move out during construction. For significant construction projects that require demolition and days or weeks' worth of work, renters can't safely live in the home without risking their safety and quality of life.
Choosing to conduct rental property renovations in an occupied home can lead to income loss while your renters aren't living there. Tenants might also reconsider renewing their lease if they know you'll disrupt their life in the property for the sake of property improvements.
Time your next project to take place between lease terms when renters aren't living in the property. For residents who renew their lease or have multi-year leases, property management experts recommend working with them on the timing of an upgrade that minimizes inconveniences for them.
Can You Complete the Renovation Quickly?
In most cases, Jacksonville rental agencies recommend making improvements that will take no more than 30 days. If your project takes longer, consider holding onto existing tenants by offering a discounted rate with a lease renewal option, then renovate once their terms have ended.
Property owners must remember that every day that your property isn't rented, you're losing money. Extensive renovations and lengthy projects might make your property the best rental in Jacksonville, but consider the costs of making that happen! In many cases, renters aren't looking for the best or most prestigious house in the area. They want the best home for their needs at a price they can afford.
Depending on the costs of extensive upgrades, a property manager will want that you could price your home out of the competitive market—leaving you with a nicely updated rental that isn't attractive to new tenants who want to overpay to live in it.
Is It Necessary?
Home improvements to keep up with the Joneses aren't always a good idea—especially for investment properties. While your rentals should compete with similar homes in the Jacksonville area and offer features that attract quality residents, going above and beyond with unique or pricey updates isn't often necessary.
"Necessary" renovations keep your property competitive and enhance the renter's experience. These updates include safety upgrades, new flooring, replacing kitchen appliances, and adding energy-efficient features to the house.
"Luxury" upgrades might be nice for your private residence or if you intend to sell the property. However, things like changing the home's layout, tearing out and replacing the kitchen, or adding a pool can force you to increase the rental price beyond what area renters are willing to pay.
What Is My Anticipated Return On Investment?
When you determine the best necessary renovations for your property, make sure to evaluate the anticipated return on investment.
Jacksonville property management companies know that updates can justify a rent increase when comparing to homes with similar features, but don't forget to factor in the costs of the upgrade to analyze the ROI. Renovations can get costly! Consider:
- Planning and development
- Contractor costs
- Income loss during construction
If you have an upgrade in mind, but you're not sure it's going to pay off, work with a Jacksonville property management company to run the numbers for you! The right property managers also have the resources to help you find good contractors and reduce costs.
Will Renters See Any Benefits?
The goal of any property upgrades should be to benefit renters in ways that boost your bottom line. Check out other rentals in the area and work with property management experts to learn more about what tenants are willing to pay for and the upgrades that attract quality, long-term residents.
Work With a Jacksonville Property Management Company to Plan Renovations
The right renovations at the right time can boost your bottom line! Keeping your property updated can also reduce the time spent during the make-ready process between tenants. However, poor timing or trying to conduct upgrades while tenants are mid-lease can be a costly mistake.
Work with Jacksonville, Fl, property management experts to plan and execute timely renovations that boost returns! Spectrum Realty Services understands how important it is for you to have reliable, experienced professionals who know what they're doing when it comes to planning and executing timely renovations on your rental properties. We'll work with you every step of the way to minimize disruptions in tenant occupancy and keep costs down by avoiding unnecessary expenses. Reach out before your next renovation project and see how we can help with our professional property management services.
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