4 Tips to Keep Your Property Renovation on Track
A poorly managed property renovation is one of the most common reasons for real estate investors losing money. Whether it’s a house flip or getting a unit ready for rental, there are so many ways a remodel can go off the rails. You need to do everything you can to keep the renovation on track in order to ensure more profitable returns.
Here are 4 tips PropertyLark recommends for a more efficient and effective property renovation:
1. Have a Plan
We say this a lot because it is so important. If you are going into a real estate investment without a detailed plan, you are destined for failure. Even if you don’t fail, you may be leaving money on the table by not optimizing your strategy. You should carefully budget and plan out each facet of the renovation, including timelines, projected expenses and every critical detail.
2. Hire a Good Contractor
If you experienced at doing the renovation work yourself, then fine. If you are lacking experience or this is your first real estate investment, you should definitely consider hiring a seasoned renovation contractor. Don’t just hire the first name you see and be wary of anyone offering cheaper rates. You may find a hidden gem or you may find yourself in a disastrous renovation experience. Find someone you trust to be honest with you upfront and throughout the process. Find someone who has specific knowledge of renovations and remodeling, not just new home construction or repairs. Talk with several contractors and find one that meets all your needs.
3. Build in Some Wiggle Room
One way to ensure you stay on a timeline is to make the timeline realistic. Too many investors make the mistake of creating a construction timeline that is way too tight. You are trying to cram six months of work into three months of work. This will lead to shoddy “rushed” results or frustration when you keep falling further behind schedule. Be conservative in your time estimations and build in some wiggle room that allows you to adjust as needed and stay on track toward your overall renovation goals.
4. Plan for the Best, Prepare for the Worst
This is a tip most first-time property buyers learn the hard way. It’s okay to be optimistic and put together an “ideal” renovation plan. Just know it rarely goes exactly as planned. You have to be prepared for some surprises and hurdles along the way. This tip goes hand-in-hand with the wiggle room mentioned above will help you stay on your general timeline, but it’s the mental preparation that could mean the difference between success and failure. You have to be ready for anything and everything. If not, you will easily find yourself way off-track as soon as something unexpected happens—even if it’s a little obstacle that shouldn’t set you back as much as it does.
If you have a realistic timeline, detailed budget, achievable milestones and a little mental and physical wiggle room, you should be able to get through the property renovation process with fewer headaches and delays.
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