The 11 Key Factors Of Successful Property Refurbishment Projects
Refurbishing a property can be a challenging and time-consuming process, but it can also offer tremendous rewards if undertaken correctly. Even so, the process is not as simple as it may seem, and as such many refurbs encounter difficulties along the way.
Refurbishment projects are an essential component of any property renovation strategy. They can unlock hidden value in older properties that have seen better days; they can also help attract new residents who are seeking out modern living spaces with updated amenities. When done successfully, refurbishments can result in cost savings and increased rental income due to their lower maintenance costs.
Whether you live in a historic home that desperately needs updating or you’re looking to spruce up your rental property, a renovation project can be a great way to raise the value of your home and increase the number of tenants who are interested in renting it once again.
However, before you get started with your renovation plans, there are a few things you should keep in mind so that your property refurbishment project goes as smoothly as possible. With that being said, let’s take a look at 11 key factors that ensure success when refurbing properties.
1. Research your market thoroughly before starting
Refurbishments are a potential source of income, but they can also be a source of great risk. Before investing a significant sum of capital in the process, you will want to ensure that you fully understand the market in which you plan to operate.
This is because the type of property that is in demand in a given location will vary greatly according to several factors, including the amount of demand, the supply of suitable properties, and the state of the national economy.
You will also want to know what is happening in the surrounding area. Is there a stronger market nearby that you could potentially cannibalise? Is there a nearby project that will affect the value of your refurbished asset?
2. Take a good look at the existing condition
When you’re planning your property refurbishment, you should take a good look at the existing condition of your home. This way, you can get a better idea of what you’re dealing with, and see where you might need to adjust your plans.
Make sure that you’re not going into the project with unrealistic expectations. Ideally, what you want to look for in areas where the condition isn’t quite up to snuff, and areas where the home is in a better than expected condition.
3. Build a trusted relationship with your contractor
The best way to avoid major issues in the refurbishment process is to have a clearly defined contractor. This will help you avoid any confusion or disagreements in the planning, design, and construction stages of your project. It will also help you establish a strong working relationship with your contractor throughout the process.
This is vital if you plan to refinance properties as a business and not as a hobby. Another key factor when working with a contractor is having a clear contract from the outset. Make sure to include everything from the expected start and finish dates, to the budget and details of any liabilities that the contractor may be responsible for.
4. Determining what needs to be refurbished is important
Ideally, you want to determine what needs to be refurbished before you get too far into the project, so there aren’t any surprises once renovation work begins.
What you want to do is look at the condition of your home, and decide what you think needs to be refurbished, as well as what shouldn’t be refurbished at all. If you live in an older home, this might be a great opportunity for you to make considerable improvements to the home. You might also want to think about areas where your property is in good condition, but you might want to think about updating them to be more modern, too.
5. Building codes and standards
When planning your property refurbishment, you also need to think about building codes and standards. What you want to do is look at your home’s current building codes, as well as your home’s existing standards. If there are, you can then work with your local building officials to get these standards updated, so that you have the best chance of getting your renovation project approved
6. Establish an organised and measurable refurbishment plan
When you first decide to renovate a property, it can be tempting to dive straight in and make extensive changes to the building’s fabric. While this approach may seem like a good way to speed up the renovation process, it is often more costly and less efficient.
Begin by looking at the building’s existing condition and making a list of the most pressing needs and issues. Once you have identified these, write a detailed refurbishment plan that sets out the refurbishment timeline, budget, and cost. Drawing up this plan will help you to stay focused and keep all renovation efforts within the budget. In addition, it will also give the contractor a clear idea of what you want the finished product to look like, which can speed up the refurbing process significantly.
The plan should also highlight any key measures that need to be taken during the refurbing process. For example, you may want to implement energy-saving measures, upgrade the building’s utilities, or repaint the walls.
7. Don’t forget to pay creative attention to the smaller details
As you can see, a successful renovation project requires a lot of hard work, impeccable planning, and a detailed budget. Unfortunately, very few property owners can put everything we’ve discussed into practice. Therefore, you mustn’t forget to keep an eye out for the small details that can make or break your renovation project.
You might want to think about updating or replacing smaller details like light fixtures, door handles, or your home’s roof. You might even want to think about updating or replacing smaller details like carpeting, or painting the walls or the ceilings.
8. Use an estimator when you’re planning your finances
While having a clear plan before you start with your property refurbishment project is important, it’s also important that you factor in your budget when planning out your finances. One way to do this is to have an estimator come out and provide you with an estimate for the total cost of your renovation project.
Getting an estimate from an estimator will allow you to put a budget aside for your project, which can be helpful when you need to bring in extra cash during your renovation project. Furthermore, estimators are often able to provide you with a much more accurate estimate for your project than you could come up with yourself.
9. Refurbish in phases
The extent to which you can lower the cost of refurbishing a property by doing a partial refit rather than a full refit will depend on several factors, including the extent of the damage, your budget, and the amount of time that you have before tenants need to move in.
If you have a substantial amount of damage in need of repair, the best approach may be to focus on repairing specific components such as the roof, walls and floors. This will allow you to get the job done more quickly and at a lower cost.
Whenever possible, you will want to focus on smaller projects and restorations that add value to an asset. This will help lower your overall investment as you will be able to refit a space more quickly and at a lower cost.
10. Track progress
The best way to ensure that a refurbing project is successful is to track progress, set measurable goals, and be vigilant when looking for new tenants. This will help you to avoid the pitfalls that can often trip up refurbishers who are new to the process.
You will also want to make sure that you are using a tracking system to keep tabs on the progress of each stage of the refurbishment process. This will help make sure that you do not accidentally overlook any key components.
11. Keep an eye out for deals on furniture and equipment
When you are securing furnishings, appliances, and other equipment for your refurbishment, it is important to keep an eye out for deals and discounts. This will help you to save money while you are working on your home and may even allow you to find bargain items that were overlooked by other homeowners in your area.
While it is important to stay on top of the latest refurbishment deals and products, it is also important to remember that it is okay to go with what you have in your home. You do not have to replace everything, and you do not have if you do not have the budget to do so. You can add some vintage or modern touches to your home by mixing or matching furniture and appliances that you already have at your home. This will help you to save money while getting your renovation project finished without breaking the bank.
The Bottom Line
Refurbishing your home can be a challenging and expensive process, but it is also an opportunity for you to bring your house into the 21st century and give it a fresh new look.
Refurbishments also offer immense potential for both investors and property owners looking to generate a return on their investments. Successful property refurbs can result in cost savings and increased rental income due to the lower maintenance costs.
When done correctly, however, they can result in cost savings and increased rental income due to their lower maintenance costs. It is important to keep in mind the key factors that ensure success when refurbing properties.