Rental property owners and managers face the exciting and daunting task of planning large-scale property renovations. Exciting because a strategic renovation can improve both profitability and tenant satisfaction, whether you’re modernizing an older property or making improvements to add long-term value. However, it is not without its challenges, since renovation necessitates careful planning, financial allocation, and teamwork. This is particularly important to keep in mind if the property you are renovating is currently occupied. Renovation projects, if not properly planned, can easily spiral out of control, resulting in added costs and lengthy disruptions. In this post, 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. For instance, you might wish to improve the curb appeal of your rental property, increase energy efficiency, repair or replace damaged buildings, or renew outdated features. As you define your goals, think about how much money you have, the urgency of the renovations, and the long-term benefits you want to achieve. Keep in mind that there may be more than one way to accomplish a goal; thus, it is crucial to choose the pathway that offers the most benefits to all parties. It is critical to solicit feedback from renters, figure out what they require, and look at current market trends. This way, 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 move is to create a budget and timeline for your project. If the property is unoccupied, you can focus your planning only 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 quite usual for construction projects to go over budget, so including a line item to account for that might help you avoid that. Whenever feasible, get several bids for the work you need to be done. This can help you set a realistic budget and be prepared for the unexpected.
If your property is currently occupied, generating realistic deadlines and communicating frequently with your tenant is especially necessary. If the planned renovation involves areas of the property that will be very disruptive, consider a phased approach to help minimize your residents’ inconvenience. You should be ready to invest considerable time and effort into managing expectations and schedules before the work begins because coordinating with vendors, renters, and contractors may get tricky.
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 illustration, check the validity of all licenses, read online reviews from prior clients, and request examples of past work. When investigating contractors, do not simply take their word for it! You may need to research several contractors and vendors for every feature of your project, so give yourself plenty of time for this step. As you obtain bids, compare them to similar jobs done in your area. Approach other property owners who have recently completed renovations and compare ideas if you can. This can help you hire smart at competitive rates and keep your project on budget.
Once you settle on one or more contractors, collaborate with them to develop transparent, written contracts that detail the project’s scope, the job to be accomplished, the expected timeline, and payment terms. If anything happens along the way, get all updates in writing. With this approach, you can set clear expectations and better ensure accountability.
Step 4: Ensuring Compliance with Local Regulations
As the start date for your renovation nears, you have to contact your local municipality and secure any necessary work permits and inspections. To protect your renters and workers while on your property, you need to comprehend and follow all safety and zoning regulations that apply to it.
It’s also critical to understand all fair housing laws and make all updates compliant with any accessibility needs that current or future residents may have. In this approach, 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 undertake extra precautions to ensure your tenant’s ongoing comfort. Firstly, remember to notify your renter well in advance of any renovation project. Consistent, clear communication is important to a successful renovation project on an occupied property. As the project evolves, deliver regular helpful updates with expected completion dates. By keeping your tenants informed, you give them the opportunity to prepare for potential disruptions.
If your renovations impact your renters’ daily living conditions, you may need to deliver temporary solutions. You must not anticipate your tenant to vacate the property without support, even momentarily. It is a good idea to listen carefully to your tenant’s concerns and address them quickly. Do everything possible 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 required for large-scale renovation projects. Appropriate communication and picking to work with experienced professionals with outstanding credentials for quality are key to making any renovation go well.
Renovating your property doesn’t have to be a headache. Trust the professionals to streamline the planning and execution of your renovations. Get in touch with the professionals at Real Property Management Three Bridges for excellent property management services in St Louis and the surrounding areas. Call us at 636-542-8852 or contact us online right away to get started!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
