Unlike with residential, there is always the urgent need to renovate rental properties when issues arise.
This is so because tenants have to get value for their money, hence the urgent need for renovations.
Besides, renovations are one of the various ways of remaining compliant with regulations governing the rental property industry.
Being aware of the process steps taken during renovations can go a long way in helping landlords prepare adequately and effectively.
This will go on to help them achieve not just pristine living conditions for the tenants, but also units that meet the standard building codes.
This article aims to demystify and simplify the process that most landlords deem intricate.
Property Assessment
Rental Property Remodeling
Usually, rental property renovations are because of issues raised by tenants. Since you, as the landlord do not live in those specific units, you may not really authenticate such demands unless you conduct a thorough inspection. During the inspection, you can tell what areas need attention, those that do not, and those that can wait. The walkthrough, for instance, can help you determine if some fittings and fixtures need repairs or replacement.
Budget Considerations
No matter the many distress calls for renovations, they have to be within your budget cap. Besides, you cannot spend money that you do not have or can get. The established renovation points and issues determined in the previous step determine how much more money is needed beyond your set budget limit. At the same, your budget size will determine what to prioritize and what can wait a little longer. While doing that, your set budget must go into the areas that are likely to give instant higher ROI.
Remodel Planning
The next process step involves project planning. The planning helps in identifying the source of materials, the various contractors needed for the job, the entry and exit points of material delivery trucks, and the cleanup process. Effective project planning can be done by getting quotes from different building companies and comparing the terms and cost of service. If you already have a preferred contractor, it is time to invite them so that they can help in effective planning.
Notifying the Tenants
With clear details of where to work, a set budget, and a plan, you then proceed to notify the tenants of the planned renovations. As a landlord, your tenants are technically your employers since it is from their income that you draw yours. For this reason and kindness’s sake, it is good to inform them in time so they can prepare for the unforeseen inconveniences from the work. It is good to inform them ahead, say 2 or 3 months so that those who need to seek alternative accommodation can make the necessary arrangements.
Local Laws and Regulations Consideration
All renovation works in rental units have to be accompanied by necessary permits from the relevant state and federal authorities. The regulations are meant to ensure compliance with the set building codes and your commitment to effective and safe waste management. Before the commencement of the works, check the prevailing local laws and regulations and obtain the required permits for the same.
Hiring Contractors
Since you have already conducted a market study of some great building companies, it is now time to invite them. However, if you already have a deal with a certain contractor, it is now time to formalize the deal by appending your signature to the project contract. However, before doing that, be sure to clearly understand all the details of the contract.
Commencement of the Remodel
With that, the contractor will then jump right into the project works as per the contract. Since now things are out of your control, all you will need to do is show up at the site from time to time to monitor the progress.
Project Completion and Cleanup
With the project works done and dusted, you will then conduct a thorough walkthrough, inspecting for any mishaps and misses as per the contract. In case of any unforeseen issues, be sure to communicate them to the contractor early enough so that they can be addressed accordingly. Then schedule unit cleanup in preparation for occupancy by the new or existing tenants.
Since rental unit renovations are expensive and can come with lots of inconveniences, you have to lay down stringent rental rules to maintain and protect their new good condition. One of the many ways of achieving that is by screening your next tenants so that you do not have to deal with clumsy people.
