tess_cook73

Rejuvenate or renovate

Tess
3 years ago

Hello everyone,


I have just bought my first apartment! and i am quite excited, it was built in the late 70's and could definitely go for a more modern face lift, which i planned to do.


My dilemma comes in because i wont be able to move in straight away due to my current living arrangements so i am looking at renting it out for at least the first year until i am ready to get in.


Should i do some touch ups ( rejuvenate) to get it rental ready and renovate once i am ready OR renovate it and increase its rental value more.


my friends and family have mixed perspectives some of them being:

- tenants wont care for the new aspects like i would and i wouldn't get to enjoy the new appliances look etc

- its a bit of a waste of money to do it up and then redo it again in about a year

- if you increase the rental value you can make a good dent into the mortgage before you get in


Thanks for any input!

Comments (8)

  • oklouise
    3 years ago
    last modified: 3 years ago

    first talk to real estate agents to get an idea of rents and expenses and then to your accountant about the financial, tax and insurance implications of doing improvements to be rental ready and/or after the tenants have left ..we always aimed to have the property handed over in the condition we wanted tenants to hand it back minus normal wear and tear.. so, a safe, clean and comfortable rejuvenated property ready for a 12 months tenant would be my choice eg have a plumber and electrician make sure everything is in safe working condition, shampoo carpets, clean the stove, light fittings, AC and range hood filters, replace all the light bulbs and wash windows and curtains and replace missing hooks etc and save renovating for when you're ready to move in..keep in mind that a major renovation could mean months when the property can't be lived in and no rent paid but, once you begin to receive rent, the cost of replacing a heater or stove and/or repairing damage etc is different than replacing these items before or after the property is available for rent so choices and costs/profit can change over time and professional advice will be essential...make sure you take lots of detailed photos of every room and appliance, make a list of brand and model of all appliances, make copies of any appliance instruction booklets for r the tenant and keep originals and also make a scale plan of the apartment with accurate measurements (that you check personally with a tape measure) as this will help when you're dreaming about future renovations and you'll be able to work out new floor and window coverings or changes to the kitchen and bathroom and your "file" will also be useful to compare the before and after condition for your lease and bond.. whatever you decide, congratulations on your new investment and good luck with your decision

    Tess thanked oklouise
  • bigreader
    3 years ago

    Just make sure it’s super clean. Maybe some fresh paint and blinds if really needed. Otherwise leave as is (unless the Agent says otherwise). Congratulations on your purchase.

    Tess thanked bigreader
  • C P
    3 years ago

    I agree with the above but if any appliances aren't fully working then I would replace. I'm thinking rental stoves with ancient elements aren't great.

    Tess thanked C P
  • Tess
    Original Author
    3 years ago

    Thank you to everyone whose commented so far, your perspectives have been great and informative!

    I had a building inspection done when i purchased the property ( so i know its needs a couple small things done) , and i will take this to my future property manager so when we settle soon we can get this sorted, i think we will do a walk though and test all the appliances make sure they are up to date and give this place a new coat of paint the best clean of its life!

  • PRO
    Dr Retro House Calls
    3 years ago

    Renovations take time, and cost money in spending on the renovations, and loss of rent during the renovation period. You will be financially streets ahead if you do a quick refresh, maybe just a really good clean (and paint if needed) and get a tenant in there paying rent as soon as possible. In the next 12 months you can do your research and spend time to get your renovation just right for you, rather than end up with a rushed renovation to get a tenant in quickly. There are thousands of decisions to make with a renovation which will be based on your research and personal likes. A rushed renovation is usually a bland, generic renovation, often based on what suppliers have in stock on the day that your tradesman needs them.





    Best of luck,

    Dr Retro of Dr Retro House Calls/Dr Retro Virtual Visits

    Tess thanked Dr Retro House Calls
  • pottsy99
    3 years ago

    I don't know if you could do this for a 1 year rental , but I once bought an investment place that already had a tenant . Talking to them , they wanted to stay , but were 'annoyed' the previous owner had done pretty much nothing in several years .

    I asked THEM for a list of what needed doing , and any improvements they wanted , and even colours of paint and tiles . I bought some paint , they painted the kitchen and bathroom , I ( with their permission ) did the tiles . Over the next few years ( they stayed 6 years approx ) they bought some light shades that I reimbursed them for , painted skirting boards and wallpapered a couple of rooms . I reimbursed all expenses , they paid below market rent as they wouldn't take a 'lump sum' reduction accounting for their labour , and presumably had a feeling of involvement .


    Tess thanked pottsy99
  • Julie2266 B
    3 years ago

    deep clean it, steam clean carpet, patch holes in walls, repair things, and only replace things if they are extremely old like aforementioned 60s oven. you might consider easy things like new blinds/curtains if tatty or replacing very dated lights or fans. If you can't help youself you can paint things to make it make appealing, like a wooden kitchen can be painted white, benchtop paint, tile paint (on walls). Don't spend more than two weeks. Save the major reno's - if tenant moves out in 6 months then you can do it and claim on tax, then have another tenant. if not then save your money, pay down the loan (int rate only 2%) and do it in a year. goodluck :-)