Homeowners, especially investment savvy homeowners, are always tempted to cut corners on repairs and renovations in their homes. If you’re like me, you bought a first home with the intention of one day turning it into an income-generating property. This way of thinking makes a ton of sense, as tenants will often end up paying you 2 to 3 times as much as you are paying on your monthly mortgage (at least in my market).
So as you’re refurbishing your first house, it’s easy to think, “I don’t need to spend so much money doing this. I’m not going to be living here long, after all.” While I agree with this mode of thinking on one hand (you don’t need the shower of your dreams in a home you’re going to inhabit for 1 year), I think that good quality renovations still have their value. Some of these benefits may not soon translate into dollars, but let me make this argument.
- Good Renovations Attract Better Tenants. Good tenants are a beautiful thing. They respect your house and don’t mess it all up. When they move out, you find that the house is in much the same condition it was when they moved in. They tend not to annoy the neighbors. They tend not to have as many repair requests. In general, they’re the best thing a landlord could ask for and a joy to do business with. But people like this expect a solid, attractive house. Respect goes both ways with great tenants. So if you want reliable people who treat your house well, it’s important to put the same values into the investment you make in the property itself.
- Good Renovations Improve Neighborhoods. You’ve heard of the Broken Window Effect? Studies have shown that areas with broken windows have more crime. People subliminally realize that nobody cares about the area, and are therefore more likely to abuse it and its citizens than they would in an area where people are invested in general upkeep. The same holds true for the insides of houses. If you invest in slipshod renovations, this carelessness is going to rub off on the rest of the neighborhood: the expectations for how other homes are renovated, the sense of pride of the citizenry, and finally the overall economic growth of the neighborhood and the investors within it. It pays to renovate well. And it does good too.
- It Builds Your Career. If you wind up being in this investment game for a decade or more, you want a good reputation. Being known for good work creates opportunities. You may just be called upon to run important projects, if you can be trusted to deal well with your earliest ones. Home Inspectors can quickly tell the quality of craftsmanship inside houses, but other people gradually catch on. Be known for good work and you’ll build your career in lasting ways.
Quality renovations may seem like a pain in the short term. But they tend to pay off in the long term. So buy right, build well, and you’ll have an enviable career.
Article Submitted By Community Writer
