Paying Tax On Your Rental Income – The Landlord’s Tax Guide
As a landlord, you will want to optimize yourproperty investment. One of the best ways to do it is to opt for home improvements before you let out or sell your property. We bring you some of the top ideas to add value to your home from which you can take your pick.
Making some new additions
If you feel your roof needs an upgrade, doing it would surely add value to your home. According to new research, the addition of a new roof would cost you £4,150 and offer you a 63% return. If you have old, rusty windows that can put off your potential buyers or tenants, you could consider installing aesthetically-appealing new windows with double glazing. For a 3-bedroom house, installing windows with double glazing and protective frames would cost you between £3,000 and £5,000. You could even consider adding a new loft. Its average cost would be £24,600, but it could offer a 50% return. A much better, although a costlier option, would be adding an extension to your property at an average cost of £19,750 that could bring you a 71% ROI (return on investment).
Giving your kitchen and bathroom a makeover
The heart of most homes is the kitchen. Thus, renovating your kitchen is a good idea as it could enhance your home’s value by almost 10%. If you can spend £5,000, you can give your kitchen a makeover by installing engineered flooring, replacing the cupboard fronts, and fitting new worktops. You can go for fancy upgrades and makeovers to your kitchen, which would cost you an average of £9,600, which could bring you a return of 49%.
Usually, the bathroom is the most important room after the kitchen. You can give it a makeover by changing stained or chipped sanitary ware or replacing the tiles. The average cost of a bathroom renovation is £4,900, with a return close to 50%. If you’ve got the space, you could even build a second bathroom to enhance your property value further by almost 7%.
Enhancing your garden’s look
If your home has a garden – big or small, ensure to keep it weed-free. Additionally, mow the lawn, brush the paved areas – if any, and ensure proper care of the flowerbeds or plants to showcase the area in its full glory. At an average cost of £4,550, garden improvements would offer you an 88% ROI. If your garden is neglected, you could even plan to lay a patio or an outdoor deck to facilitate outdoor entertaining.
Improving energy-efficiency with solar panels
By installing a range of stylish solar panels or upgrading your existing (and unappealing) solar panels, you can not only boost your home’s value by up to 40% but even improve its energy-efficiency. You may even add energy-saving lights, double glazing, loft and cavity wall insulation, among others, to bring down the heating bills that would surely attract potential buyers and tenants.
Doing some exterior work to enhance the wow factor.
Your home should be appealing from the outside to make prospective tenants and buyers interested in stepping inside and having a look. To enhance your kerb appeal and bring in that ‘wow’ factor, you could paint the exterior walls and the front door, replace old or worn door furniture with new knobs, smart handles, and knockers, and ensure the driveway is in good condition by replacing broken path tiles if any. You should also check your outdoor lights and get them replaced if they malfunction or no longer work. The average cost of exterior work is £6,000, with an ROI of 75%.
Updating the central heating is another effective way to boost your property’s value. You should also consider replacing your boiler if it has been serving you for over 15 years. If your home has any plumbing or structural issues, you should get them fixed. Ignoring them could worsen the situation.
You may even consider restructuring your property’s layout by adding a loft conversion, pulling down a wall separating the living room and kitchen to create a bigger open plan communal space, etc., to add value to your home.
Ways to add value to your home on a tight budget
Sometimes, you may not have the budget to opt for fancy or expensive renovations and makeovers to your home. But does it always mean spending a lot when you want to add value to your home? The good news is – not always.
Here are some ideas and “decorative” tricks that could enhance your home’s value even when you’re working on a tight budget:
- Repaint the walls with a neutral palette
- Fix squeaking doors, damaged or jammed windows, and broken door latches
- Regrout or retile your tiled surfaces, if possible
- Replace loose tiles
- Fix dripping taps
- Replace old carpets, if you have any
- Sand down your wooden floors and add a varnish finish
- Clean your doorknobs or replace them
- Get rid of mould around the house, if any
- Upgrade your flooring
- Fix cracks on the ceilings
- Buy new kitchen appliances
- Add a mirror or two in the bathroom to make the space seem brighter and larger
- Install new light fixtures or use accent lighting
Unlock your home’s full potential
By now, you might have got a fair idea about the wide range of things you can do to add value to your home. Depending on your budget, you can opt for extensive and fancy renovation and add-ons or choose more toned-down, decorative alternatives. But whatever path you decide to take, your home would soon become an appealing property that you’ll enjoy living in. And when you choose to rent it out or sell it sometime soon, it would bring you a higher profit and a more significant ROI. So, plan wisely using the tips and tricks mentioned above to enhance your property’s value and make the most of your investment.