Tom Entwistle talks about how you can easily and cheaply add value to your rental property to help make sure you make a profit.
Warren Buffett famously said, “you make your profit when you buy, not when you sell,” so by selecting the price-value spread that you're willing to pay ultimately determines the amount of profit that you can realise.
One tried and trusted way to maximise profit is to buy undervalued property, you can then compound the gain by adding value. Buying below market value means you’re already in profit when you come to sell, so whatever income the property makes in the meantime, you can always come out on top.
Buying bargains usually means lots of research and patience. Sounds mercenary but the three Ds have always been a useful ally to the seasoned property investor: death, divorce and destitution present real opportunities. When people simply want to offload a property quickly or when they are desperately in need of funds you can strike a great bargain.
If you can move quickly, with cash already allocated for the purchase and/or finance in place, and a solicitor who can complete on time, then you have a tremendous advantage over other buyers.
Buying a successful rental property rests on three vital imperatives: (1) is it in the right place, where there’s lots of rental demand, (2) is it the right type of property that tenants want in that location (flat, house, HMO etc) and (3) can you add value?
Properties come on the market in all sorts of conditions, they also present different opportunities for improvements. From the grottiest property to the pristine, and from one with no outside space and poky rooms, to one with lots of space to add extra rooms, extend upwards or outwards.
Structural and major alterations cost money so you need to be careful you don’t go beyond what you will get in return, but there are also many alterations and improvements you can do on a DIY scale. They cost relatively little but will give you a massive uplift in return for relatively little cost..
Many landlords, particularly those with lower resources, and those affected by rising costs, may struggle to afford major structural improvements and renovations. Considering this, many landlords take the DIY route, doing projects with the potential to add value without costing the earth.
Searching the hashtag #DIYideas is a great way to get inspiration on what’s possible at an affordable cost.
With this in mind, the Accu’s DIY experts researched to find the top 10 cheapest home improvements that could add the most value to your property, without the help of professionals.
Alastair Morris, managing director of Accu offers his strategic perspective:
“With the UK market now rewarding well-maintained, move-in ready homes, we advise customers to focus on improvements that offer both instant appeal and long-term value. Our research shows that the best returns come from projects that enhance both aesthetics and long-term practicality.”
Accu’s expert Arron Gordon also adds expert commentary.
Costs: from £112
Potential value added: up to £58,000
Tools needed: Trowel, Gardening gloves, Grass seed, Lawn mower, Pruning shears, Garden shears, Garden fork
When looking at the home improvements that can give you the most bang for your buck, tending to the garden comes out on top. It’s been revealed that homes that have an unkempt garden are likely to decrease home value by around 20% and be valued at £57,888 less on average than those with a tidy garden.
Accu’s expert Arron Gordon states: “An easy way to tackle an unkempt garden is to first mow any overgrown grass that you have, and to trim any brushes that are needing to be tended to.
“You can then look to remove any weeds - dig these out manually with a trowel, making sure you remove roots to reduce the chances that they’ll grow back. If you have any patches of lawn where your grass is lacking, use a garden fork to prick the area and then use grass seed to eventually grow a luscious lawn. “
Costs: from as little as £5
Potential value added: up to £26,100
Tools needed: Wall erasers, Paint testers, Sponges, Washing up liquid and paint, paint brushes, Sandpaper
In second place we have wall cleaning or re-painting. Homes that haven't had their walls deep-cleaned are likely to be valued at £26,100 less than those that have, according to the study
Arron Gordon comments: “Simply use washing up liquid and sponges to clean any marks and scuffs off the walls without removing your paint. Alternatively, wall erasers can be a great way to rid your walls of any marks.
“For marks that prove harder to remove - you can spot paint using either leftover paints from when you first painted the wall, or if you need to rebuy the shade you can grab a tester and save on getting litres worth of paint that you don’t need.”
Costs: £9
Potential value added: £10,000
Tools needed: Strip lighting
Improving a kitchen can reportedly add up to £10,000 onto your home’s value - but you don’t need to go for a full remodel to give your home an upgrade.
Arron Gordon advises: “Clever hacks such as adding strip lighting are a quick way to give your home a professional finish without breaking the bank.
“Simply buy your chosen strip lighting and measure out the amount you need to go underneath your cupboards. As strips are usually self-adhesive all you need to do is peel and stick to get the full effect of cabinet lighting. This also immediately adds a modern atmosphere to the space.”
Costs: £18
Potential value added: £10,000
Tools needed: Cabinet paint, Paint brushes, Sandpaper, Screwdriver
Another easy way to update your kitchen is to repaint cabinet doors. It costs as little as only £19 but could potentially add £10,000 to your home. The hashtag #paintingkitchencabinets has over 2 billion views on TikTok as it seems many are loving this cheap hack.
Arron Gordon comments: “First, remove the handles from your kitchen cabinets, and then unscrew the hinges so you can remove the doors. Whilst resting the doors flat, clean them and remove any grease. You can then lightly sand them and wipe off any dust before painting them with your chosen colour.
“It’s also crucial to factor in the resale value when choosing the colour. Opting for light neutrals is advisable as they have a wider appeal and can help you sell. Using lighter colours doesn’t have to be mundane, consider pastel tones like powder yellow or baby blue to add vibrance to your kitchen.”
Costs: £55
Potential value added: £10,000
Tools needed: Handles, Screwdriver, Wood putty, Putty knife, Drill, Screws
Updating kitchen hardware is an easy way to give a home an updated, modern look. Start by unscrewing and removing old handles. If your new handles will be going in a different place on your cabinet door, you can then use wood putty and a putty knife to fill any holes in the door that you don’t need anymore.
Arron Gordon states: “When deciding where you want your new handles to sit, measure and mark this on the door with a pencil - hold up your handles to check this is where you really want them before you start drilling any holes.
“When determining how you want your handles to sit, think of your kitchen as a whole, rather than just one cabinet at a time. Once you’ve chosen your placement, you can go ahead and attach your new hardware!”
The experts at precision components supplier Accu provide their insight on materials and interior details that can benefit home DIY projects by adding aesthetic appeal and value:
“If you’re looking for a DIY project that’s going to create value and stand the test of time, it’s important to consider how all your parts might look and their durability. Stainless steel fasteners are a great addition to a home, due to their ability to withstand harsh weather and daily wear. For outdoor projects in particular, using stainless steel ensures that fixings won’t rust or degrade over time, which means less maintenance and greater peace of mind for homeowners.
“Finishing DIY projects with stainless steel fixings not only improves the appearance of the work but also reassures future buyers of quality and attention to detail. Durable corrosion-resistant fasteners can make the difference between a quick sale and a property that lingers on the market.
“Other simple touches you can add include brushed metal switch plates & socket covers, which involves swapping out cheaper plastic covers for brushed steel, matte black, or brass. This instantly upgrades a room’s aesthetic appeal, making it a small spend with a big visual return.
“Additionally, consider adding magnetic door stops in stainless or matte finishes, which can provide a modern touch as well as protecting walls and doors from damage over time. They are a great way to add functionality and aesthetic appeal.”
Precision components supplier Accu wanted to find out which DIY projects are the cheapest and could potentially add the most value to a property:
[Main image credit: Mark McCammon]
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