It all starts with a fairly straightforward plan.
Update the kitchen. Replace the flooring. Fix the drainage outside. Maybe put up a new fence while you’re at it.
Nothing particularly ambitious.
Then, the contractor discovers water damage, the materials cost more than expected, and somebody realises nobody knows where the underground pipes run.
Renovating a rental property can be a good investment, but there are plenty of opportunities to spend money you hadn’t planned on.
Some mistakes happen because you cut corners. Others happen because you didn’t know what to look for or check beforehand.
Here are five expensive mistakes to avoid when renovating a rental property:
1. Don’t Renovate Beyond The Rent
You’ve found the perfect marble countertops, imported Italian tiles, and designer bathroom fittings. They’ll look incredible.
But will tenants pay enough extra rent to justify them?
Before choosing expensive finishes, look at what similar properties in your area are renting for. There is only so much people will pay for a two-bedroom apartment, regardless of how stylish the kitchen is.
Spend where it makes sense, not where it’s tempting.
2. Expect The Budget To Change
Your contractor has given you a quote, and everything seems to fit neatly into your budget.
Then the old bathroom tiles come off – hello, water damage.
It’s worth keeping a contingency fund for the things nobody can see until work begins.
You don’t need to assume that every possible disaster that could happen will happen. But leaving yourself absolutely no financial breathing room is asking for trouble.
3. Don’t Let A Shovel Find The Problem
There’s an expensive difference between knowing where a buried pipe is and discovering it halfway through digging.
If your rental renovation involves new drainage, fencing or foundation work, get the underground services checked first.
Specialists may use ground penetrating radar (GPR) alongside other locating methods to investigate what’s below the surface.
A damaged utility line is not the sort of renovation surprise anyone wants to pay for.
4. Don’t Buy The Cheapest Version Of Everything
Saving $200 on bathroom fittings sounds like a great idea!
Until the shower mixer starts leaking and you have to pay someone to replace it.
Suddenly, that saving doesn’t look quite so impressive.
Look for decent-quality products with good warranties, particularly for taps, flooring, and anything else that gets used frequently.
There is no point saving money upfront if you’re going to spend twice as much fixing things later.
5. Don’t Pay For Work That Isn’t Finished
A contractor asking for money before the agreed work is finished isn’t necessarily a problem.
Sometimes there are legitimate reasons for it. But don’t just transfer the money because you’ve been told everything is on track.
Visit the property, see what’s been done, and check it against your original agreement.
If you’re paying for a finished bathroom, you should at least have a finished bathroom.
To End
Nobody wants a rental renovation that ends with a lovely new kitchen and a bank account they’d rather not look at.
The trick is knowing where to spend, what to check, and when to question something that doesn’t seem right.
Renovations come with enough unexpected expenses as it is. There’s no need to add avoidable mistakes to the bill.
