How to Decide on Renovations and Upgrades

Renovating or upgrading your multi-property building is exciting! All the refurbishments will make the place feel new and fresh again, and it’s like seeing your property bloom in front of you. However, both renovating and upgrading properties require not just architectural and financial planning but an overarching vision of the bigger picture as well.

Some fall into the trap of wanting to make it into a place they would like to live in, and others don’t care what it looks like as long as it’s habitable. Both are roads to a disaster. It is important to keep in mind that being able to determine the amount of money that should be invested into upgrading a property depends not just on architectural and financial factors, but the human element as well.

What do we mean by this?

It has been my experience that the best question to ask yourself when deciding how much to spend on renovations and upgrades is, “What would be inviting and fitting for a tenant I want to have in my property?”

It is important to choose who you want to have as a tenant and design and maintain the property that reflects that kind of tenant. Do you want small family units or bigger families? Are you looking to attract a younger, trendier crowd or perhaps retirees? The contrast in the latter example shows a clear difference between age-influenced preferences which will affect the type of property upgrades and renovation style (and budget) that you’d ultimately end up doing. By determining who you want to have as a tenant, you will be able to make the corresponding sound decisions on what type of renovations and upgrades to do on your property.

How much to spend on renovations for your investment property with that question in mind will become easier to determine. Bigger families and/or retirees who are more likely to settle for a longer period may be contented with a basic overhaul of the space. Freshened up paint, fully functional HVAC systems, and shiny new doorknobs matched with a quaint curb appeal may suffice. For a younger crowd, a more current style of interiors or perhaps a curb appeal that screams “I’m the place to be” can do the trick. Relative to this, the location will dictate to some extent what your options are. Your property upgrades and renovations should make you stand out from the competition without scaring your target tenants away, so keep in mind how your property will look relative to its surroundings as well.

At the end of the day, your property will be the final arbiter of who will want to live there. ALWAYS keep in mind the person you want as a tenant anytime you are making decisions about what to do with your property, and even where you purchase or build. With a clear “bigger picture vision” of who you want to attract as a tenant, you will have a more defined execution of your property upgrade and/or renovation that will ultimately lead your target tenants to you.

We hope you found this article, “How to Decide on Renovations and Upgrades,” helpful. Find other blog posts here.