How much does it cost to renovate a rental property?

The standard of rental accommodation in the Private Rented Sector (PRS) has greatly improved over the recent years. Over the last decade alone, the proportion of rental properties classed as non-decent in the UK has almost halved. However, buy-to-let landlords across the UK invested significantly in refurbishments which is a much welcome contribution.

Renovation cost of a one to two-bedroom property

Landlords and buy-to-let property investors are often interested in finding out the average cost to renovate a typical one to two-bedroom rental property. On average, statistics show the magic figure is around £12,000. Bearing in mind, the cost of materials is increasing along with the ever-increasing legal certification required to rent a property. However, according to our experience, a more realistic figure can be anywhere between £15,000 – £20,000 for a full strip out and reinstatement. Then again, a simple freshen-up can be in the region of £7,000.

What aspects to consider when renovating a rental property?

The renovation cost is a spend that has to be carefully considered and thought through in terms of the potential uplift in monthly rent, capital value, and basically how long it will take to recoup the expense. In addition to these points, other main considerations for us are longevity, the quality of the tenant, and the management of the tenancy in the long term

Can I get a return on investment if invested in renovation work?

You can expect a return on investment over a period of time.  Although such things as carefully choosing materials and finding good quality tradesmen to carry out works to a professional standard also play a role. We have seen monthly rental income increasing by as much as 50%. More importantly, so does the number of enquiries to rent. Years of viewing properties have proved time after time that newly refurbished properties are what tenants want and what they are willing to pay for. The question is, why landlords wouldn’t want to be the first choice to let, every time and for the foreseeable future.

In summary: three key components to a successful renovation

In summary, there are three key components to a successful renovation: simple, practical, and durable. Always have in the back of your mind that this is a rental property you are renovating, not your own home. It’s best to set yourself a budget that gives you the required return of your investment and it’s best to stick to it.

Why choose Gilson Gray?

We believe that property renovations are the best long-term solution for your rental property investment. With highly skilled and experienced staff, we’re best placed to take on rental property renovation projects. Our team is ready to hit the ground running and take pride in seeing the end result. Our team also has some of the best local contacts in the business making sure to get desired results at the best price for you.

Contact us

Get in touch with us today to discuss how we could help you with your rental property renovation project.

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