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It's always interesting to see what people do to upgrade their properties, whether its a one-off full refurb or a re-vamp of an area.
Vanessa recently upgraded a letting room for not to much £ iirc and it looked very smart.
So what upgrades/refurbs/room upgrades have you done this year or have got planned for this year, and include before and after pictures along with £cash spent if possible?!
I haven't yet got the before and after pictures currently but I'm upgrading the utility area in an HMO.I have got heartily sick of fridge freezers giving up the ghost and it's not pleasing to know they'll probably be going to landfill, but I've also had enough of compensation for food gone off!So I'm planning on refurbing the utility area that currently has a washing machine and separate tumble drier (nothing changing with those) and taking out 2x fridge freezers and putting in 2x fridges and 1x freezer with a new worktop all the way through. A small upgrade but it does start to add up!Worktop, upstands etc. from Howdens @ £340.Fridges and freezers from AO.com £825 (1x fridge going to another rental).Extra electrical points etc. will be approx £150.Plus I've got the excitement of doing the fitting as well over the summer!So all in around £1500 or so.Rent has increased by £235pm so it will soon be paid off and the area will be much more useable.So what have you done/got planned - big or small, let's see 'em all!Or if you're doing a JC and getting the tenant to do the upgrade, let's see that as well ;->
We've had to spend about £3,300 on a 4 bed house in Manchester. This included new carpets throughout, repairing water damage, re-grouting the bathrooms, fixing loads of niggly things, removing waste from the garden, fixing a damaged front door, having new locks put front and back, fixing a fuse box ... the list goes on.I was very grateful that the company undertaking the work has allowed me to pay in three monthly instalments.The property had been let for five years at £750.00 per month. A new tenant moved in last Saturday and she was happy to pay £895.00 per month.The ex-tenant did not pay the rent for the last four months of the tenancy, so it will take a long time to get this particular property back into the black again.It is on occasions such as this that the Advanced Rent Option could be a very useful tool to manage cash flow. A landlord could use the upfront rental payment from another property to fund up-grades/refurbishment of a "problem" property.Just glad that all the work has been done and a tenant has moved in ... it's been a black cloud hanging over me for many months!
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Is this the one in Ashton-under-Lyne?
Last year a tenant in a 3 bed house of mine in A-U-L stopped paying his rent of £625pm. He left in January after 6 months. I have to pay £7000 to refurb it, It had been freshly done just before he moved in with his family three years ago. It has been relet at £725pm so this month I started getting money for it again.
The three year fixed mortgage was up and when I looked at remortgaging I found that it had gone up £50k over those 3 years. I am remortgaging at 75% of the higher value and using the extra as most of a deposit for an extra property.
So the clud turned out to have a silver lining for me.
every year I set aside a budget of around 15% of gross rent
I can always find repairs to do through the year
I break repairs down to A and B
A are repairs - Boilers leaks electric faults and general ever day running repairs and voids of course
B If I haven't used my Budget I then start looking other stuff - Gutters, Roofs, Pointing etc.
It's all part of the job and its all tax deductible so its all worth doing ...
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
I keep 10% of gross rents and it does soon add up. All my properties are fairly new so little to do in terms of "B repairs" at this point, but when it comes time the funds will be there waiting.
The cash reserve skimmed off the top is certainly a comfort blanket, the question is how big of a comfort blanket? For me, my target is £5k per property.
Where are you planning on keeping this £5k contingency?
Premium Bonds? Cash ISA?
I max my ISA each year so the contingency funds I currently split between P2P lending site Ratesetter (earning 3.5% on their rolling account) and a Marcus savings account (earning 1.5%).
The Marcus account is instant access and the Ratesetter account would take a few days to sell the loans.
I tend to have older properties so I can see your point
http://www.360Property.co (No UK)
I always keep the property up to standard and deal with things straight away that way as they come up. I never need to do complete overhaul in one go. When a tenant moves out I will re do the rooms ( hmo) ready for the next one. However over the last few years they tend to stay longer term and will do jobs themselves. Repainting they do it and I just pay for the paint. Also new white goods they tend to buy them themselves ( fridges, washing machines even cookers) and take them when they leave or some times just leave them behind. Suits me fine. One is a plumber, carpenter, painter and even a plaster so they all do small maintenance for me and depending upon the work I reduce thats months rent or get it for free. Works very well and has done for many years. As they are in the trade I can get good electricians for cheaper prices. Just now need a lawyer, doctor and car mechanic to complete the set.
Been an expensive year so far.....
I tend to put aside 10% of the rent of each property aside for maintenance - and dip into savings as necessary - for me attracting Grade A tenants is a must to charge premium rent (for specific properties) and min void.