Buying a multi-family property can be an exciting new beginning for some, and a renovation nightmare for others. Renovation contractors know that multi-family homes come with a unique set of challenges that require expert knowledge to overcome and successfully complete renovations.
The experienced multi-family renovation contractors at Genesis Construction have created the perfect guide for multi-family property owners to approach renovations.
Four Tips for Multi-Family Renovations
- Do your research before buying
Before committing to a multi-family property, which may require major renovations, buyers should request a detailed description of the renovations and maintenance, which the previous owners have completed over the years. Multi-family property owners may hold on to a property for years without completing necessary repairs, as they value the space as more of a commercial business, rather than a personal residence.
A property with multiple units occupied by various groups of people can lead to serious damage from the high level of foot traffic alone. New multi-family property owners may be faced with unresolved plumbing, heating or electrical issues, along with many other important elements of the home, which may require expensive repairs and restoration.
Buyers looking into multi-family real estate should research comparable properties in the area, and assess the price to ensure that it is not suspiciously low. Multi-family property owners will often express an interest in making a quick sale in order to leave the rental property business behind, and use this as a justification for a relatively low-priced listing. However, prospective buyers should dive deeper into the cost of renovations, which the owner may be attempting to mask at a low price, to leave repairs for the next owner. Multi-family property owners will get a much higher rental price out of their space once renovations are completed, however, these costs should be taken into account when investing in multi-family real estate, and the property should be listed accordingly.
Before investing in a multi-family property, prospective buyers should consider hiring a professional to perform a thorough property inspection, in order to flag any potential problems that may require the services of multi-family renovation contractors. There is only so much that the average buyer can do to inspect a property themselves, making a professional inspection well worth the cost. One of the best ways to inspect a property yourself, however, is to speak to the neighbors, who may be able to provide some insight into major problems, which have affected the property in the past such as flooding or infestations.
- Form a well-thought-out budget
The cost of bringing in contractors to complete several multi-family renovations can add up, and property owners should prepare a detailed budget before beginning these improvements. Owners should obtain quotes from multiple contractors and hire a multi-family property inspector to provide a full picture of the repairs and maintenance that is needed so that they do not run into unexpected costs once renovations have commenced.
Rental property owners should always consider the realistic increase in price that they will be able to ask from tenants after completing renovations. By calculating the rate at which the owner will be able to acquire a full return on their investment, the task of calculating finances and determining a budget on renovations will be much more straightforward.
Properties, which require immediate repairs may require renovations before enough money has been raised to complete a full renovation plan. In this case, multi-family renovation contractors can be brought in for various tasks in distinct phases, over an extended period of time. Property owners in this position should prioritize non-invasive renovations that will not interfere with the day-to-day activities of residents so that long-term renovations are not obvious and disruptive.
As buildings become outdated and endure various damages over the years, multi-family property owners can expect to pay for costly renovations or maintenance at some point. It is therefore beneficial for multi-family property owners to set aside a fund specifically for renovations so that there are funds available when emergencies inevitably come up. Many rental property owners depend on their income from tenants to fund renovations, however, this can be unrealistic for extensive structural changes or other tasks, which will undoubtedly require an additional renovation fund.
- Consider the most lucrative renovations
Some multi-family property owners will have the luxury of planning renovations without the burden of urgent structural repairs or other emergencies, which require immediate attention. Rental property owners who can focus on the appearance of the space should take advantage of this by first hiring multi-family renovation contractors to complete aesthetically pleasing projects, which will bring in tenants. One of the most attractive features for prospective renters are new, high-quality floors. If changes such as this are prioritized during renovations, property owners will be able to fill their rental units quickly, generate revenue, and help fund their remaining renovations.
Changes to the exterior of your property or non-urgent general maintenance can be left lower on your to-do list, as tenants will be willing to pay a higher rental price based on an updated unit, as opposed to general building renovations. Once individual units are renovated, occupants will be pleased to hear that the entire building is undergoing similar renovations.
- Opt for long-lasting materials
When requesting quotes from renovation contractors, it is important to take the time to gain a thorough understanding of the building materials that will be used to perform repairs, along with the various options for flooring, roofing and other materials that will be used during renovations. The longer your renovations last, the more time you can spend renting out your units, rather than leaving your property unoccupied to complete regular renovations and maintenance.
Although property owners are responsible for managing a reasonable budget, it is worth paying a higher price for high-quality materials and reputable multi-family renovation contractors that will produce a long-lasting result.
Genesis Construction is Here to Help
The contractors at Genesis Construction are dedicated to providing you with the beautiful, high-quality renovations that you have been dreaming of for your multi-family property. Our team understands that a careful property investment, a well-thought-out budget, and a high-quality renovation is the perfect recipe for a high-profit rental property.
Call us today at 1(847) 895-4422 to ask about our services, or visit our website to view some of the stunning renovations we have completed in our project gallery.
