basics of adding value to old tiny apartments.

[Francine]

basics of adding value to old tiny apartments

my son wants to do up a bunch of tiny apartments in one block of apartments of a relative to rent out himself and get more rent than he would have to pay. how can he most add value for least cost

should he put new bathrooms and kitchens or just paint carpet lights doorhandles throughout
should he put new kitchens with nice appliances and dishwasher

or leave them as is and just paint the old wooden kitchens or change the doors or benchtops,
or find second hand ones that he can make to fit?

they are tiny flats . you walk straight into the lounge, there are 2 bedrooms, a very small bathroom with bath taht has shower above it, toilet, sink
and a very small kitchen no dishwasher possibly an old upright stove/ oven, one sink and drainer with still wood cupboards build some 45 years ago.

what about around the apartments should he try to clean up stained concrete, tenants who leave ugly things outside their doors, plant some flowers?

should he put a air con /heater

whats worth doing that will really lift up the rent of some very tiny old flats.

the outside has brickwork and the long old balconies no security or anything so i wonder how much the rent can go up if we make them really nice inside.

 

[craigb]

You mention a bunch of small apartments , if this is the case it would be awsome if he was to do up the entire block , from floating floors and new kitchenets, paint , new handles and new tiles in the bathrooms , new shower screens etc then add some archetural things to the out side , add another $100 per unit and go excecutive.

 

[Peter Parker]

the outside has brickwork and the long old balconies no security or anything so i wonder how much the rent can go up if we make them really nice inside.

Some balconies have steps on both sides so it's not possible to block them off.

But others (eg end units) are sometimes a dead end.

Is it possible to put a small gate on the balconies for the end units for improved security?

 

[Francine]

Thanks for that possibly you could do a gate for the last flat, but there have never been any security issues in the last 45 years.

I wonder if all that was suggested of going executive is a good move for such tiny flats with little storage space, a lane next to them, and also you can hear some noise from other flats and some flats play very loud ethnical music with no consideration.
do you think its really worth to do all new kitchens and bathrooms to have them as executive apartments
and if so how do we cut costs.

 

[Ms Jade]

The end result you are going for should be dictated by the market. Where is the property & who are the renters or groups of renters in the area? I would speak to some local property managers and have a look at what is on the rental market nearby. There is no use spending money that you won't get back. Make sure that "executive" tenants exist for tiny flats in the area. It may be that you'll get more return from a simple paint & spruce up inside & out.

 

[yadreamin]

basics of adding value to old tiny apartments

my son wants to do up a bunch of tiny apartments in one block of apartments of a relative to rent out himself and get more rent than he would have to pay. how can he most add value for least cost

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I think this is called sub-letting. You might want to look into the laws in your state regarding that alone.

Now , why would you son want to spend soooo much money on someone elses property for a couple of hundred dollars
2nd. and risk the real owner turfing him out as soon as the work is completed
3rd, your son be right to sign off on altering another persons property will he?
4th. should be good if its strata title. That would make it a real messy mess

 

[neK]

Some balconies have steps on both sides so it's not possible to block them off.

But others (eg end units) are sometimes a dead end.

Is it possible to put a small gate on the balconies for the end units for improved security?

I would actually say that adding security gates on the balcony would decrease value.

If i was living there then thats fine. But if im trying to rent it or sell, as a potential renter/buyer, i would think is the place that unsafe they have gone those type of measures.

(Im thinking of those balconies that are fully covered from top to botton in metal gates - looks a bit like a prison really).

 

[Peter Parker]

I would actually say that adding security gates on the balcony would decrease value.

If i was living there then thats fine. But if im trying to rent it or sell, as a potential renter/buyer, i would think is the place that unsafe they have gone those type of measures.

(Im thinking of those balconies that are fully covered from top to botton in metal gates - looks a bit like a prison really).

Yep, agree they look hideous. I was thinking of ones that are (say) waist high. You might then feel more confident about leaving a chair or table out there without having to bring it in each day.

 

[Francine]

thanks to you all. Yes i think just a cheap spruce up is all that is worth.

they are in a great area near all amenies, shopping, schools, transport.

though the other side of the main rd has streets taht are much nicer, more houses less flats while this side of the main rd has streets with alot of flats but its closer to the main rd and what is considered one of the best areas,

but this block is next to a lane so that is your view from the front window and door,
they are noisier and more basic than otherflats, very basic,
as mentioned no security
little storage
not even a hallway you just walk straight into the lounge
tiny kichens with still the old wooden cupboards maybe 170x 230 or less just guessing
tiny bathrooms but do have a bath,
concrete around it has clutter from some tenants and could all do witha bit of sprucing.

But they are always let, their rent is probably cheaper than other nicer places so probably the most affordable flats in a good area cloes to everything,
and if he is planning to sublet to students then really a bit of sprucing is all thats needed.


and for the person who asked why he would want to spruce up and get more money from flats that dont belong to him,
because they belong to a relative and he will end up benefitting by having the freedom to sublet with the elderly relative owners permission so there is no trouble with current subletting laws. i dont know if the owner will contribute to paint or other expenses possibly.


its just a matter of the original question of what he should do to spruce it up to raise rents but it seems just a basic paint and whatever is needed to make it basically nice, might be all thats warranted. He is quite handy himself.

 

[Jane - Hotspace]

Hi Francine,

I think you're right - a quick spruce up or a 'tweak' is all he'll need. They will always be small and they will always be in a block so there is a maximum value that you'll be able to increase them to.

I totally disagree with the executive option (sorry Craig) because your son will need to spend a lot of money in order to improve the units to a high enough standard.

I work with people all the time who have properties to renovate but not sure how far to go. It's so easy to spend a lot of money to improve a property, but as an investor that is not the point. It's a bit of a tricky one, but perhaps do what Jade has suggested and talk to some local property managers and real estate agents about what the expectation in the area is. That way you can get a clearer idea of what your target market wants and therefore where/how to concentrate your money.

A good place to start is to figure out what other renovated units in the area are going for (value and rental) to figure out how much he should spend on the unit. What are the other properties worth? What are these units worth? What is the difference and is there enough fat in there to make a profit after the reno costs are taken out?

It may seem backwards, but the best way to ensure you make a profit is to work out your budget first and then prioritise what you are going to do within that budget that is going to have the greatest impact.

There are plenty of ways to renovate a kitchen and bathroom without pulling them out and starting again. I have clients who have renovated their entire kitchen for a few thousand dollars and they virtually look like new. It's just a matter of knowing what to do. Ditto for bathrooms.

Hope that helps!