Getting the keys to a property after completion is just the start of the work!
Yes, you have spent hours, days, weeks and months getting out there viewing properties, working out the costs and what you should pay to make it a good investment that will give you the returns and equity you want.
You have put your offers in and it HAS happened!
You have had an offer accepted and off you go and purchase it in whatever way you want to.
You go through the process of exchanging then completing and the property is finally yours.
Don’t forget if you buy in England & Wales you must insure the property after you exchange. Yet in Scotland it’s after you compete / own the property.
Fabolous and well done.
You must have a celebratory pat on the back or a glass of something or maybe go out for dinner. So often we don’t stop to enjoy the moment or stop and realise how well we have done and recognise the process we followed has worked.
We often just carry on the next thing that needs to be done or look for the next deal.
It is important to enjoy the moment, smell the roses along the way and enjoy the journey.
Now it’s time to get on with preparing the property for the purpose you had in mind.
If you are creating a HMO then you will have to get started on getting all the rooms ready up to the required regulatory standards while making it a very lovely desirable place people will want to rent.
If you are planning for it to be a holiday home for people to rent for short periods then you will be thinking about the décor, furnishing and fittings again to make it a place people will rave about and want to tell their friends and also come back again.
If you plan to flip it, maybe create extra rooms or extensions so that you can sell for a higher price and make more profit then the refurbishment would be a higher specification than you would if you were looking to rent it out. Why? Well because people buying for their home will be looking for those nice little touches and that better kitchen design and quality. A better bathroom that feels luxurious.
And of course, you may have it earmarked as a buy to let (BTL).
This will have different levels.
For example, if your property is in a very affluent area of town that attracts very wealthy people then the finish of the return will need to be top quality.
If it’s in a nice area, maybe we call it middle class area, then the tenants you attract will not be paying as high rents and will and a good nice to look at and feel finish that would be a step down from the affluent area.
You may be looking at low income or those receiving benefits as your potential clients who want a clean , fresh, safe and warm place to live.
If you have no idea what these levels of refurb should be then you must go to the local agents to find out.
A local letting agent will tell you what rents the quickest and what people are looking for.
A local sales agent can tell you what is in fashion right now which make people go …
wow I want this now !!
You know there was a time where having separate dining room and living room were the thing to have. Now it’s more open plan.
There was a time where a feature all was all the rage.. something like one wall in the living room having exposed brick work or a very expensive wall paper.
So you see it’s import to find out what will get you property moving the quickest.
As you see there will be different refurbishments for the different tenants you are marketing to. I have a particular product to fit each .
I have a complete template for each one and I will share that with my builder so that they know what will be going in . The template will include things like , the make and model for kitchen , the tiles to use in the kitchen and bathrooms. The toilet , sink and bath to put in . the colour paint I would use for each room . what carpets and flooring I would fit etc.
Having a templet for each type will moves things along much quicker.
Let me explain that statement.
You know when you first bought your house or rented a place , you spent hours , days even deciding what colour to paint the bathroom. You went down to the hardware shop and picked up the sample pots of paint. Then you took them back and painted a small patch of each on the wall stood back and them decided you didn’t like any of them! So off you go and repeat the process till you settle on a colour. Then you had the hall way, bedrooms to do the same for . before you know it a couple of weeks have gone by and you still don’t have it all settled… Now it’s time to decide on the furniture or the cooker , fridge freezer and so on and so on!
If you had a template for the house then all these possible distractions are no longer there and you can be well into the process win a couple of weeks.
Remember the sooner you have it ready for it’s purpose the sooner you will be earning money from it. There is a big difference in turning it around in 3 months to 6 months or longer.
Ok so you have your template, of course if it’s your first one you wont have that template yet and it can take you longer or you could use another investors template if the will be happy to share.
Now you need to decide if you are going to be the project manager or if you are going to outsource this job. If you have done the job before and you have access to all the trades you need then this could be an option. You will need to methodical and understand what is needed at what point in the refurb .
Or you outsource this to the general builder or there are people who specialize in running refubs on your behalf. This would come at an extra cost however you may recover that cost in the time it takes to have the property ready to rent or sell.
Realistically if you are going to do a full refurb , that does not include any structural work, then you would be looking at around 12 weeks / 3 months.
A full refurb would be
a new Kitchen ,
new bathroom,
new heating system ,
electrics
any plastering ,
paint and decorate
and new flooring.
I hope this was useful
Best Regards Neil