My Top 10 Rent To Rent Refurb Hacks
Do you know how to complete a Rent-to-Rent refurb?
Discover my top 10 refurb hacks; why it’s important not to cut corners, set a budget up-front and avoid large projects so you can break-even as quickly as possible…
In this episode, I am going to be sharing with you my top 10 Rent-to-Rent refurb hacks. Getting the deal is one thing, but the next thing you need to do is get the property cash flowing as soon as possible.
A big part of the process to get your property to market is the refurbishment, a stage of the project that can have a significant effect on your break-even point.
Whether you are new to Rent-to-Rent, in the process of securing your first deal or you're on project number five, you'll find something in this episode that's valuable to your refurbishment process.
Listen to this weeks episode below or if you don't have time to listen right now, scroll down to see my top 3 tips from this weeks episode.
In this episode, you will learn why
It's important not to cut corners
Avoid kitchen and bathroom refurbishments
It's vital to set a budget
Refurbishment mistakes can impact your break-even level
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Here are my top 3 tips from this weeks episode
Avoid cutting corners; you will regret it later.
It's essential to take advantage of the property being empty, once the tenants are in, then it's going to get harder and harder to put things right. Rent-to-Rent deals generally last for a duration fo 3 - 5 years, and there will be wear and tear on the property. I advise you to get the property to a high standard before going to market.
Do not refurbish kitchens and bathrooms.
One of the first things I look at when viewing a potential property is the kitchen and bathrooms. I want those to be of a decent standard only requiring cosmetic works. If the deal stacks you can replace worktops, cupboards, baths etc. but it is not something I recommend and the more you spend, the more this can extend your break-even point.
One exception to this rule and a hack I have used is the screed the floors and then add a vinyl floor. It can make a huge difference and very cost-effective!
Always check the electrics and plumbing early!
The first thing I do when I have access to the property is to check the electrics and plumbing. It's important to bear in mind the properties are likely to have been empty for a while. You will need to test the heating, run the showers, run the taps, turn on the washing machine, check the dishwasher and make sure everything is in working order.
A hack I have learned to check early is are there enough plug sockets and are they in the right places. Sometimes the smaller details can have a big impact.
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Podcast Transcript↓
[00:00:56] Simon here and welcome to another episode of the podcast where we talk all things property, Creative Cashflow and, of course, how to be financially independent today, not in 25 years. And on this show, I'm going to be sharing with you my top 10 rent-to-rent refurb hacks. I'm going to go deeper than ever and I'm going to be sharing all. So if you're thinking about getting into rent-to-rent or if you've just got your first deal or if you're working on getting deals and you've got no idea what to do once you get one across the line, this is for you.
[00:01:35] If you're on project number five and you just want to learn some of my refurb hacks, this is for you. Going to be sharing tons of value. If you're brand new to the show, guys, you know what to do. Please subscribe, share and drop us a little review. It means the world. It helps us to grow. And, you know, the support has been overwhelming, to be honest with you. I can't explain how happy I am on where this is going. I remember when I first decided to do this podcast, I was like, you know, should I do it once a month? Should I do it once every two weeks? And I just thought, you know, I want to do it every week. And, you know, some of my mates were like, really? You sure you want to commit to that? And I'll be honest with you guys, there's times when it gets tough, but I'm really, really enjoying it. And it's great just to be so consistent and do this every single week. So guys, hit me up on social media. Let me know what ideas you've got for future shows. I'll be really, really grateful and happy to hear from you. And of course, I personally respond to every single message. Be great to, you know, have a chat. So without further ado, my top ten rent to rent refurb hacks. OK, tip number one, don't cut corners. You'll regret it later.
[00:02:56] The carpet needs a deep clean. Perhaps you should just replace it. You know, if the walls are kind of ok but not quite right, try and do it originally right now. While it's empty before you take on the property for five years because otherwise you know there's going to be wear and tear. You're going to regret it. And once you've got tenants in then it's going to get harder and harder and harder to put right.
[00:03:21] Tip number two, no new kitchens or bathrooms, guys, it's not your property. That's one of the main things I look for when I'm on viewings. The bathroom and the kitchen need to be quite decent. I'm not replacing worktops, really. I'm not really replacing any cupboards. I'm not replacing whole baths and all that. You can do it. You can do it, but I prefer not to. Yeah, I prefer not to. And what I've realized is you can do cosmetic refurbs in the bedroom and other parts of the house, but in the kitchen, in the bathroom, their less forgiving. So you need to try and take on properties that have got quite good facilities. One exception to this is...one of my hacks is if you change the floor and you maybe screed it and then just put a vinyl floor, it can make a massive, massive difference. So I have done that. But no avocado, 80s, 70s, bathroom suites.
[00:04:22] Number three, set a budget and stick to it, yeah? And make sure the budget is in line with your target tenant. So what that means, if you're going for the higher end of the market, then you need to make sure that your budget relates to that, OK? They're going to want certain things. To the same degree if you're going for the lower end of the market, skip the Smeg toasters and all that good stuff. And the other thing is only do things that are going to add value to the rooms. There will be sort of a ceiling limit for certain demographic of tenants. And it doesn't matter what you do, that's going to be the most that they can pay. So be mindful of that.
[00:05:05] Number four, work together with the landlord to get the property in the right condition for quality tenants. It's beneficial for both parties, so it's got to be a partnership, but one rule I have is I never, ever, ever fund any work that I believe they would need to do anyway to attract any type of tenants. So, for example, you know, if the toilet seat is hanging off and not working, I'm not paying for that. You would need to do that regardless. And, you know, if the carpet is torn and no sort of normal family tenant would, you know, would put up with that, then once again, I'm not funding it. I'll help you do it. But that's going to be your responsibility.
[00:05:49] Hack number five is price compare once and then just make a list of the best places and rinse and repeat. So, you know, it's really, really time consuming, finding the best place to get, you know, carpet or the best place to get beds or the best place to get fire-doors or whatever it is. So shop around once, make a note, put it in your systems and then just rinse and repeat every single time. In my business, my biggest, biggest hack has been all my furniture I get from the same local provider every single time. They do me great deals. I know their catalogue sort of off the top of my head. I don't even need to go down there. I literally just call them up, say, hey, Simon here. I need four beds, four furniture sets and they will literally deliver it. They'll put it up, they'll take away the rubbish. They'll even set it in the way I like it now because they know how I work. And I don't have to attend and I'm going to explain why I don't have to attend in a little bit. OK, so massive, massive one there, price compare, make a note and then just rinse and repeat.
[00:07:00] Number six, cheaper isn't always better. You know, there's that whole saying, buy cheap, you buy twice, so you need to make sure that you are buying quality bits. In terms of appliances, I always try and buy quality and invest. You know, that's the key. You want to spend a little bit more sometimes because once you've broke even, you're going to have less ongoing issues.
[00:07:30] Number seven, what's your order of works and timelines? This means the woodwork needs time to dry before the carpets go in, allow a couple of weeks to get the internet sorted. And, you know, if the carpets are being replaced, then make sure you get them up and gone so you can check the floorboards, because if there's any damaged floorboards, they'll need reinforcing. And you're going to need to know about that before the furniture, excuse me, before the carpet guy gets there ready to go. Massive, massive hack that one.
[00:07:59] Number eight, always test the plumbing and electrics early. So as soon as I get to the property, that's one of the first things I do. Keep in mind, a lot of these properties might have been empty for a while, so you want to run the heating, you want to run the showers, run the taps, run the washing machine, run the dishwasher and make sure everything's sound. Because if it's not, you want to know about it before you've got tenants in there. A little hack that I've learned is, is there enough plug sockets? You know, make sure there's enough plug sockets and they're in the right places because otherwise you're going to come undone on that one as well.
[00:08:39] Hack number nine is Facebook Market is great, you know, Gumtree is great, but it's also time consuming. It's hard to get receipts to make it tax deductible and, more importantly, it's impossible to rinse and repeat because, you know, that amazing DFS reduced sofa's only going to be available from Jenny on Johnson Avenue the one time. OK, so I did Facebook Market at the beginning, and then I was like, no, this is this is too time intensive. So remember, it's not all about money. It's also about your time. That's why I love my local furniture supplier. I don't go IKEA. I don't have to put the furniture up. I don't have to get rid of the waste. It saves me time, so I'll just pay it. So you want to ditch Facebook Market and Gumtree as quickly as possible and go to somewhere where you can rinse and repeat. You know, so now I'll just go Wilkos, Argos, IKEA for anything I need to avoid, you know, having to make the decisions again and again, and now I can send members of my team and say, hey, here's a list of the bits I get from Wilkos. Can we just get them?
[00:09:55] And last but not least, and possibly the biggest hack I'm going to share with you today, number ten is get yourself a key safe. First thing I do when I take on a property is we get a key safe up in a, you know, a little bit of an inconspicuous position of the property and we get keys in there.
[00:10:19] And what that means is I never, ever, ever have to attend the property for any trades or measure ups or appointments. Even my furniture supplier, they just have the key safes now. They let themselves in and they put the key back. Particularly if you're not close to your properties. I mean, I'm only twenty minutes for most of mine, but the key safe is such a timesaver. Which just kind of further just reiterates guys is about saving money, but it's also about saving time. Time is precious. So you want to save that.
[00:10:55] So a quick recap of my top 10 rent-to-rent refurb hacks. Number one, don't cut corners, you'll regret it later. Number two, no new kitchens and bathrooms. It's not your property. Number three, set a budget and stick to it and make sure it's in line with your target demographic. Number four, work together with the landlord and make sure you only pay for things that are over and above. If it needed doing anyway, that's the landlord's responsibility. Number five, price compare and then rinse and repeat. You don't want to have to make these massive decisions on paint brands and paint colours and carpets this and which microwave every single time, shop around, make a list and then just do the same every time. Number six, cheaper isn't always better. You know, you buy cheap, you buy twice. So know when to invest. Number seven, what's your order of works and timelines? That can slip you up big time? Number eight, always test the plumbing and electrics as soon as you get the keys and you know you can get a specialist or professional to do that for you.
[00:12:03] You don't want tenants arriving and then these things coming up. Number nine, ditch your Facebook Market and Gumtree for, you know, mainstream retail providers where you've got a catalogue number, you've got a picture of it. You can systemise it and send a member of your team to do it, rinse and repeat. Remember, time is precious. And number ten, soon as you get the keys as well, fit a key safe on each property so that you don't have to be there for every single appointment. You know, you can pick and choose which ones are important. So that's it for me, guys. Any questions hit me up on social media and I'm just going to leave you with one sort of closing thought. These are not your properties, so we want to break even as quickly as possible and deleverage our risk. Less than six months, ideally less than three or four months, because once we've broke even, we've got no money left in the deal. Infinite returns. We are good. Hope you find that useful, guys. And remember, don't wait twenty five years. Get creative. Thanks for listening. For more information, check out Simon Smith online dot com. See you next time.