The best time to carry out improvements on your investment properties should either be when you first settle on the property (you can only do this if the property is already vacant or you have asked for vacant possession) or in between tenants vacating – DO NOT ever renovate a house with tenants living in the property, it doesn’t work. The reasons why you wouldn’t do this are as follows:
- It will end up costing you extra time to complete the renovations
- Could damage the relationship you have with your tenants
- You could end up in tenancy tribunal (previous experience with tenants accusing contractors of stealing their belongings)
- Would have to offer the tenants a reduction in rent for disruptions
- Tenants after a while start refusing access to the contractors – or make it very difficult for them
Offering a quality product on the market rather than a substandard one will allow you to ask for higher rents, you will attract quality tenants and have the ability to revalue the property for reinvestment purposes six months down the line.
Remember when carrying out substantial renovations to your properties take photos before you commence any works, keep in your file and present to your accountant at the end of the financial year to decide whether the expense is a capital or maintenance expense. It also helps that the renovation costs are fully broken down and I mean fully broken down. Fifty small figures is easier to put through the books than four large figures!!
