Renovating Your Rental: Estimating Costs

Apartment repairs and maintenance measures are among the primary responsibilities of any rental property owner. You will need to renovate your rental property whether you run a small unit or a large commercial complex. The cost of these upgrades will depend on several factors that all boil down to the size and scope of your project.

In this post, we will identify the common cost factors associated with rental property repairs and renovations. We will also discuss the essential renovations that rental property owners should consider to ensure the safety of their tenants. Once you determine that your rental property needs repairs, be sure to allot a budget for the entire project.

Factors Affecting the Cost of Building Repairs

Construction experts have identified at least ten factors affecting the cost estimation of renovation projects. Here is an overview:

1. Material Expenses: The cost of building repairs will depend on the materials that you will use for the project. For instance, if you will be using high-end materials, then you should expect to spend more money on renovations.
2. Labor Wages: The cost of labor is another crucial factor that will affect the total cost of your rental property repairs. Repair staff have unique specialties with individual rates. Their skill levels will also vary. For example, experienced electricians may charge more for repairs than new ones. Carpenters will also charge differently for labor.
3. Size of Property: Your rental property’s size will affect the total cost of repairs. Naturally, a one-bedroom rental unit will need less work and material than a three-bedroom rental unit. The age of the property may also factor into the required renovations. For instance, old buildings will require more repair work than newer ones, regardless of how big they are.
4. Location of Property: Depending on how far you are from civilization, the cost of rental property repairs can change. For instance, if you live in a remote area, then you will need to factor in the costs of transporting the repair specialists and materials to the renovation site.
5. Nature of Project: The rental property repairs may also differ based on the type of project that you will undertake. For example, a complete kitchen or bathroom renovation may cost more than simply installing new countertops.
6. Renovation Schedule: How long the repairs will go on will usually affect the project’s overall cost. Generally, longer project durations will cost more because of the extra time and an increase in indirect costs. Likewise, shortening the project durations may increase costs because of the labor demand and increase direct costs.
7. Approval Costs: When estimating the costs of repairing a rental property, you will need approval from the local government first. Regulatory agencies will adjust their prices according to your municipality.
8. Insurance Requirements: The materials and labor involved in your renovation project will need insurance, which carries additional costs. Common insurance policies for rental property repairs include general liability, workers’ compensation, and builder’s risk insurance.
9. Inflation: The economy may encounter unforeseen circumstances that affect the country’s inflation, which will also affect the cost of rental property repairs. If your renovation project gets caught in this period of high inflation, then the cost of construction materials and labor will also rise.
10. Contingency Expenses: Rental property repairs may also incur other unexpected costs, such as delays, material shortages, and bad weather. These contingency expenses can add up quickly, so you will need to factor them into your repair budget.

Essential Rental Property Renovation Duties

Now that you know the cost factors involved in rental property repairs, let’s discuss the essential repairs that rental property owners should undertake:

Check for Water Damage

The typical cost for restoring properties with water damage is between $1,074 and $4,090. Be sure to survey your property for any leaks that could lead to water damage. Check the ceilings, gutters, and pipes for any signs of leaks or moisture. You must address these faults as soon as possible to avoid any further damage to your rental property. Depending on your findings, you may consider repairing the roof or refitting pipes.

Inspect the HVAC System

The rental property’s heating, ventilation, and air conditioning (HVAC) system plays a significant role in keeping your tenants comfortable. It would help if you had a professional HVAC technician inspect and repair your rental property’s system before the start of every season. 

Routine inspections and repairs may also cost significantly less than bigger renovation projects. For instance, regular AC maintenance costs between $75 and $200. However, repairing a property’s entire HVAC system can cost around $150 to $500.

Ensure Electrical Safety

Landlords must also ensure that their rental property’s electrical system is up to code and safe for tenants to use. You can hire a professional electrician to strengthen your property against electrical fires, which are common hazards in America. The average hourly rate of an electrician may cost between $50 and $100. Still, the price will depend on your rental property’s location and how easily these professionals can reach it.

Fix the Bathroom

Depending on how your previous tenant treated your rental property’s bathroom, it may need more than just a few repairs. Perhaps they clogged the drains by flushing things that they should have thrown into the garbage bin. The cost of fixing common rental property bathroom fixtures — such as toilets, faucets, and bathtubs — can cost between $125 and $350. Meanwhile, major repairs that involve the bathroom’s water line and tile grout may cost between $500 and $800.

Patch and Replace Drywall

Another essential repair job for rental property owners is to patch and replace any damaged drywall. Water damage, holes made by nails, and other blemishes can make rental properties look unappealing to new tenants. The average rate of repairing drywall damage is between $60 and $90, which will depend on the professional’s reputation. The kind of drywall damage you have will also determine how long it will take to repair your rental property’s damage.

How Much Does Rental Property Renovation Cost?

There is no standard price for rental property repair because the costs will depend on several factors that affect the renovation project. These include the rental property’s size, location, and type of damage. Once you determine the kind of project you plan for your rental property, you can estimate the costs according to the professionals who will oversee the repairs.

Based on the average figures presented above, a complete renovation may cost nearly $6,000. One way to avoid this exorbitant amount is to conduct routine inspections to avoid major repairs. To keep track of your rental properties and identify which ones need fixing, consider managing them through dedicated property management software.

Assess Your Rental Property’s Renovation Costs With ExactEstate

ExactEstate offers a property management solution that helps you keep track of your rental properties easily. We simplify rental property management by providing you with the tools you need to assess rental property conditions and inspect your locations. This way, you can determine what property needs repairs and build a budget around it.

We value your convenience in managing rental properties and we are dedicated to your success. Schedule a free demo with our ExactEstate team for a first-hand look at our customizable solution.