Many multifamily property owners who get their properties renovated for the first time often end up with not-so-satisfactory results, despite investing hefty sums of money. While they are not to be blamed for the mistakes that they make, there are a few things that they could have easily avoided, if they knew about the common renovation mistakes committed by multifamily owners. Let’s delve deeper and learn more about the steps that property owners must take, especially when going ahead with a renovation project for the first time.
1. Conduct a Profitability Analysis
Think like an investor before going ahead with a project. Consider the return of every renovation that you plan to get done on your property. The renovations, however, should not be restricted to the ones that increase the curb appeal of the property. In addition to exterior renovations, you also need to focus on interior renovations that help keep up the structural integrity of the building and enhance its living comfort and rentability.
2. Set a Realistic Budget
A common complain that most property owners make is that their expected cost of renovations substantially exceeded the estimated costs. The mistake most of them do is that they do not discuss the renovation and repair needs with their contractors in detail. Owners must ask contractors to provide a detailed breakdown of the cost of repairs in their estimate, which should include the contingency costs that must be taken into account before the project starts.
3. Don’t Select a Contractor based on Pricing
When it comes to choosing a contractor, make sure the one you select has extensive experience and a positive reputation in the market. Don’t choose any contractor just because they offered the lowest estimate. More often than not, the ones offering lower than average market rates compromise on the quality of services, which always reflects in their work. Therefore, if you get a quote that’s substantially lower than what most contractors are offering, simply turn down the offer and evaluate the next option at hand.
4. Don’t Pay a Large Sum Upfront
One big mistake that owners make is that they pay upfront to the contractors to get a discount on the price of the entire renovation project. This, however, is not a very smart move, especially if this is the first time you are working with a particular contractor. To ensure that the project is completed to your satisfaction, forgo the discount and instead go for an installment plan. One Quick Tip: Contact your state’s local licensing board to know the maximum deposit that contractors can ask for before starting a project.
5. Ensure Compliance with Local Building Codes
Though routine maintenance requirements may not require a permit from local or state authority, remodeling projects, such as window repairs or replacements, bedroom modifications, plumbing work and other significant tasks, may require you to get the necessary permits from the concerned authorities. Make sure you do not fail to get the permits, as it may attract legal hassles. Moreover, you insurance company may also refuse to honor your claim in case of an untoward incidence, if you do not have all necessary permits.
A Word of Advice
Property owners need to understand that even with all the best practices in place, the value of their property may not increase by the same amount as they invest on its repair and renovations; however, it must not deter them from going ahead with a renovation. Multifamily renovations, if done right, deliver long term value that is sure to exceed the investments. If you are planning to renovate your multifamily property, contact one of our experts at United Renovations, and we will help you reach your ROI goals through our comprehensive renovation services. You can reach us at (972) 818-1065, (972) 818-1069 and (866) 428-1065. Alternatively, fill out our contact form and we’ll get back to you, shortly.