Hi all,
Just wondering what avenues need to be taken if you plan on doing some renovations to your ip while it is still tenanted. It would mostly be cosmetic renos, no structural changes at this stage.
Thank you in advance
Like what?
And for what purpose?
Unless it's absolutely necessary why would you want to reno while they are in there? Are you thinking of selling?
It would need to benefit the tenant, otherwise they would be reluctant to give permission. You'd need top detail what you intend to dop, how long it will take etc. Also detail how you will compensate them for the inconvenience (this may be reduced rent or that fact that they get the new)paint? etc).
How long have the tenants been there? Are they happy the way it is?
looking at purchasing first IP in Toowoomba, where i also live, a lot of the houses in my price bracket (250k) are tenanted, I was wanting to do just basic reno, paint, floors, kitchen and bathroom to speed up my equity process so that i can use it to fund another purchase, So my question is should it be put in the too hard basket and just focus on buying houses that arent tenanted if that is the route i wish to take? got a list of about 20 properties to look at and its the majority that are tenanted.
Starting off with a tenant in place is great your getting cash from the get go and you don't have to worry about it sitting there with no income until you get someone. Its really not feasible to do a renovation while the tenant is in there. In my PPOR i put in a new kitchen/floor etc. That was painful enough and it benefited me a LOT with equity etc. I couldn't imagine people paying to live in a property would enjoy having the disruption/inconvinence. I mean if a property was quite run down and with good long term tenants i guess you could offer them a few weeks rent free until its done and keep the rent the same for a contracted term. Are you absolutely sure the renovation will increase enough equity for you?
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
I was hoping so DK!! I also did a cosmestic reno on my PPOR which has aided in my first IP, was just wanting to recreate what had already worked for me. But I think i will either look at empty properties or tenanted ones that already have been updated; if the numbers stack up. Cheers for that guys
You don't need to look for an empty place. Just ask for vacant possession. That way the tenants get notice and you can do the quick reno then rent out. You should get more rent that way also.
As long as it's not a fixed lease. Check when it expires.
Hi mizfitz ,doing a Reno while having tenants in place is just asking for trouble ,it is easier while vacant , but don't over spend on major items if wanting to get a new valuation , some one else's eyes may not see the new value in what you have spent , they like to see kitchen , bathrooms ,laundry ,paint and carpet redone , the catch is not to blow the budget , good luck
Agree with above – I wouldn't want to be renting a property where the landlord stops by to carry out some reno work.
Best to wait until it's vacant and then carrying out the work.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
It can work sometimes – I have done a 1 into 2 block with a tennant in the house where I had to remove a part of the laundry and also do some other renovations (not to mention all the civil works, fencing etc) . I told the tennant up front what was happening and gave them discounted rent for 6 months. They were happy as they got 6mnths disounted rent for a few weeks of disruption, and I got to to keep income flowing the whole time. Win/ win. Would not work all of the time but if you're at the buying stage have a chat with the tennants in prospective properties when you're looking through and see what their attitude is.
Good luck
You must be logged in to reply to this topic. If you don't have an account, you can register here.
