Buy-to-let properties can offer investors excellent returns, but the best gains are made by investors who look for ways to add value to their investment property.
Adding value to a property can involve a large renovation project, but is more often about making smaller, smart changes to make it more attractive to tenants and increase its long-term value.
Once improvements have been made, investors may find themselves in the position to raise the price of rent on a property to increase their income.
Here at Mistoria Group, our team of property investment specialists has helped UK property investors across the North West add value to their investment properties in Bolton, Liverpool, Manchester, Salford, and further afield.
If you want to know how to add value to a property, read on.
Convert it into an HMO
HMO stands for House in Multiple Occupation.
An HMO buy-to-let is a property that is let out to three or more unrelated people. Typically, the bedrooms in HMOs are rented out separately and tenants share bathrooms, living spaces, and the kitchen.
Renting out each room in your property separately is typically more profitable than letting the property as a whole.
Create an additional bedroom
If your property has a box room, study, or extra living room that is large enough to be converted into an additional bedroom then this can add significant value to your property.
Alternatively, converting the attic space into an extra bedroom can be an affordable way of adding more space.
Consider kerb appeal
If you’re looking for ways to increase the value of a property, spending a little money neatening up your property’s appearance can significantly increase interest and add value.
Some affordable jobs that can improve kerb appeal include painting the exterior of the building, landscaping the front garden, painting the fences, and adding some simple welcoming touches like potted plants.
Add an extra bathroom
If your property already has several bedrooms, then that box room, study, or extra living space might be better converted into an additional bathroom rather than a bedroom.
Adding a toilet, shower room, or bathroom can be particularly valuable if your property is an HMO.
Open up the living space
If the living spaces in your property are quite small and pokey, you may be able to add value and appeal to your property by knocking down a wall to open up the living spaces and create something more modern and airy.
Freshen up the walls and floors
The walls and the floors of any type of rented property are subjected to a lot of wear and tear and can quickly begin to look old and tired.
Repainting the walls or investing in new floorboards or carpeting can improve the comfort and appearance of your property at a relatively low cost.
Keeping the colours of the walls in your property fairly neutral can help your property appeal to more people and avoiding very light-coloured carpets can keep your property’s interior looking better for longer.
Add a parking space
If your property doesn’t already have any off-street parking, then you could profit from turning an unused front garden into a garage or driveway.
Update the windows
Old, tired, or inefficient windows can detract from your property’s appearance and lower its energy efficiency rating. During a time when energy prices are sky-high, ensuring that your windows are as energy efficient as possible can be a big bonus for buyers or tenants.
Tidy the garden
While gardening may not appeal to everyone, creating an attractive outdoor space that is easy to maintain can add value and appeal to your property.
Think low-maintenance shrubs and an attractive patio and outdoor seating area.
Modernise the kitchen
The kitchen is often the hub of the home, where everyone tends to gather to swap stories about their day. If a new kitchen isn’t on the cards, small updates can still totally makeover your kitchen. Try updating very old appliances, giving the room a lick of paint, retiling the floor, or updating work surfaces to revamp your kitchen’s appearance.
Think carefully about the changes that would make the most difference in the lives of the type of tenants whom you are marketing your property to.
For example, prioritising an extra bathroom may be a more valuable investment than an outdoor living space or parking for a student HMO. However, the opposite may be true if you’re investment property is being let as a family home.
While renovating, updating, and decorating a property are all great ways of adding value, don’t forget that it’s just as important to keep up with general repairs, maintenance, and cleaning.
Looking after your investment property’s day-to-day maintenance can help to prevent it from falling into disrepair, or from damage to the property going unnoticed and causing more serious problems later.
If you’d like more advice about how to increase value of property, our highly-experienced team here at Mistoria Group is on hand to offer helpful advice and property investment services to North West investors, particularly those in Bolton, Manchester, Salford, and Liverpool.
For further help or advice, give our team a call on 0800 500 3015 or email email@example.com