Planning large-scale property renovations can be both fun and hard for rental property owners and managers. Fun because whether you’re renovating an older property or making improvements to add long-term value, a strategic renovation can improve both profitability and tenant satisfaction. Hard, on the other hand, because renovation is an undertaking that needs careful planning, budgeting, and organization. This is especially important if the property you are renovating is currently occupied. Without a good strategy, renovation projects can rapidly get out of hand, bringing about added costs and lengthy disruptions. In this guide, we’ll walk through the steps to managing large-scale property renovations like a pro.
Step 1: Setting Clear Renovation Goals
The first step to any renovation project is to identify your goals. In this case, you may want to improve the curb appeal of your rental property, increase energy efficiency, repair structures that aren’t working right, or renew outdated features. As you define your goals, think about your income, the urgency of the renovations, and the long-term benefits you hope to achieve. Keep in mind that there may be more than one way to accomplish a goal, making it critical to choose the pathway that offers the most benefits for everyone involved. It is essential to solicit feedback from renters, figure out what they need, and look at current market trends. By doing so, you can better ensure your planned upgrades align with rental expectations.
Step 2: Creating a Realistic Budget and Timeline
Once your goals are clearly defined, your next action is to create a budget and timeline for your project. If the property is unoccupied, you can focus your planning merely on the costs and hire experienced contractors who can commit to working within your desired timeframe.
As you prepare a project budget, include both expected costs (materials, labor, permits, etc.) and unexpected expenses. It is very normal for construction projects to go over budget, so incorporating a line item to account for that might help you avoid that. If achievable, get several bids for the work you need to be completed. This can help you set a realistic budget and be prepared for the unexpected.
If your property is currently occupied, developing realistic deadlines and communicating frequently with your tenant is essential. If the planned renovation involves areas of the property that will be very disruptive, consider a phased approach to help minimize your residents’ inconvenience. It can be hard for contractors, vendors, and renters to work together, so be equipped to invest considerable time and effort into managing expectations and schedules before the construction begins.
Step 3: Hiring the Right Contractors and Vendors
When you are ready to hire contractors for your project, be sure to research their reputation and track record. For instance, check the validity of all licenses, read online reviews from prior clients, and request examples of past work. When examining contractors, do not simply take their word for it! You may need to research several contractors and vendors for each aspect of your plan, so allocate plenty of time for this step. As you accumulate proposals, compare them to similar jobs done in your area. Communicate with other property owners who have recently completed renovations and compare notes if feasible. This can help you hire smart at competitive rates and keep your project on budget.
Once you settle on one or more contractors, cooperate with them to make sure you have straightforward, written contracts that detail the project’s scope, the work to be done, the expected timeline, and payment terms. If changes happen along the way, get all updates in writing. In this fashion, you can set clear expectations and better ensure accountability.
Step 4: Ensuring Compliance with Local Regulations
As the start date for your renovation approaches, don’t forget to contact your local municipality and secure any necessary work permits and inspections. To protect your renters and workers while on your property, it is important to know and follow all safety and zoning regulations that apply to it.
It’s also crucial to understand all fair housing laws and make all renovations in accordance with any accessibility needs that current or future residents may have. By doing so, you can ensure your project goes smoothly and avoid potential legal issues.
Step 5: Managing Tenant Communication and Minimizing Disruptions
When renovating an occupied property, you’ll need to take extra steps to ensure your tenant’s ongoing comfort. To begin with, you need to notify your renter well in advance of any renovation project. Clear communication on a regular basis is imperative to a successful renovation project on an occupied property. As the project moves forward, give regular helpful updates with expected completion dates. You can let your tenants know about any changes this way, and they can prepare for them.
If your renovations impact your renters’ daily living conditions, you might need to come up with temporary solutions. You shouldn’t ask your tenant to vacate the property on their own, even if it’s only for a short time. It is important to listen carefully to your tenant’s concerns and deal with them right away. Do everything you can to minimize disruptions and keep your tenant focused on the benefits resulting from the updated property.
Plan Smart for Long-Term Success
Strategic planning is vital for large-scale renovation projects. Great interaction and selecting to work with experienced professionals with a good name for quality work are key to making any renovation go well.
Renovating your property doesn’t have to be complicated. Trust the professionals to streamline the planning and execution of your renovations. Get in touch with the experts at Real Property Management Tri-Cities for outstanding property management services in Burbank and the surrounding areas. Call us at 509-572-5440 or contact us online today to get started!
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