Whether you’re buying a fixer-upper or investing in rental real estate, renovating the property allows you to boost its value and potentially earn a higher return. However, the project must go according to plan for it to pay off. If you spend too much money renovating your property, the increase in value might be far lower than the price of the improvements. The following is a step-by-step guide on how to perform a successful home renovation project in Detroit.
Create a Remodeling Plan
Before doing anything else, create a comprehensive remodeling plan that aligns with your investment goals. Describe the end goal of this renovation to inform the contractors of what they should strive for. If you’re renovating multiple rooms or areas in the property, identify the ones that you’re not going to be working on.
While the contractor you hire should obtain the permits that are needed for this type of project, it’s highly recommended that you do some research on your own. Read local zoning regulations and building codes to make sure your project meets these guidelines.
Once you determine which building permits you’ll need for the project, don’t apply for them until you’ve gathered a team of contractors and subcontractors. Your remodeling plan should include information about your desired outcome, budget, and condition of your home. Start this process around six to eight months before the renovation begins.
Set a Reasonable Budget
The next order of business involves setting a reasonable budget, which allows you to determine how much money you can spend. It should also make it easier for you to avoid spending too much. If you don’t have a budget in mind, costs can quickly get out of control. You can use this financial document to make decisions about how to properly invest your money during the renovation.
To create an accurate budget for a renovation project, consider the costs of labor, cosmetic touches, building materials, and permits. It’s also a good idea to get estimates from several contractors before finalizing your budget. Keep in mind that material costs are difficult to control. For example, marble countertops cost around $60-$80 per square foot, while laminate ones cost $10-$40 per square foot. Make sure you know how much materials the project requires before finishing the budget.
Hire the Right Subcontractors
After you create a plan and make a budget, it’s time to hire the right contractors and subcontractors for the job. While you may be tempted to hire the contractors who provide the lowest estimates, some other factors you should consider include the following:
- Contractor license
- Customer references
- Payment schedule
- Copy of insurance
- Years of experience
Choose a Good Starting Point
While planning your remodel, decide what you’ll do first. If you’re performing numerous renovations, focus on the larger and more difficult ones first. Knowing the order of the entire project makes it easier to have the right contractors on hand when they’re needed.
Before you start making improvements to your property, check the electrical, plumbing, and HVAC lines. They need to have enough capacity to support the changes you’re about to make. If you’re adding an entire room to the property, you might be tasked with obtaining extra utilities. Taking care of this step early on reduces the likelihood that you’ll encounter lengthy delays in the project’s latter stages.
Do you intend to change the building’s floor plan as part of this project? If so, this should be one of the first things you do. Minor updates and upgrades can be pushed to the end of the renovation. For example, you don’t need to install new lighting fixtures until the project is almost wrapped up.
Set a Realistic Project Timeline
It’s also a good idea to set a realistic project timeline, which involves your preferred start and end dates. Work closely with your contractors to create a timeline that they should reasonably reach. They can tell you how long each step of the process will take. The timeline needs to allow for:
- A few days extra for potential delays
- Time to clean the project area
- Holidays
- Delivery of materials
Anticipate Problems and Delays
Delays are practically unavoidable with any renovation project. Even if you plan everything, many factors are out of your control. You can mitigate this issue by placing a few additional days in your timeline. It’s also highly recommended that you set aside a small percentage of your budget to pay for unexpected costs. The three most common causes of delays during renovation projects include the following:
- Inadequate electrical system: If your electrical system is old and outdated, it’s a good idea to upgrade it before completing the renovation. Old wiring is unable to accommodate modern appliances.
- Extensive water damage: A problem that often arises during renovations involves uncovering water damage after the project has begun. From flooding to pipe leaks, it’s important to identify the source of water damage and make the necessary repairs early on to avoid delays.
- Cracks in the foundation: Depending on the age of your property, you might discover foundation damage. Keep in mind that this type of damage can be expensive to repair, which is why it’s best to fix it as soon as possible.
Monitor Your Progress and Results
Regularly monitoring your home renovation project allows you to identify issues as they occur. You’ll be able to make quick adjustments that avoid delays and allow you to meet the deadline. Once the project has been completed, evaluate the results to determine if they meet your investment goals.
Renovating your Detroit property can help you increase its value and boost its appeal among prospective tenants. With this guide in hand, you should be able to navigate the home renovation process with minimal mistakes. Contact Upside Investments today to learn how we can help you manage a successful home renovation.
