#1 rental property upgrade with high ROI

Kitchen upgrades: A recipe for success

They say the kitchen is the heart of the home, and it's true! Just like you take care of your own heart, a well-maintained kitchen can look after you. A modern, inviting kitchen can boost your rental income, attract great tenants, offer a fantastic space for tenants to live in, and even increase your property's value. It's a win-win for everyone!

Here's why kitchen upgrades offer a high ROI:

Increased rental income: A well-equipped kitchen can command higher rental rates, making it a worthwhile investment sure to return on its cost, and then some.
Faster tenant acquisition: A modern kitchen can attract quality tenants more quickly, reducing costly void periods.
Improved property value: A renovated kitchen can significantly increase the value of your property, making it a valuable asset. This is greatly beneficial for more favourable mortgage valuations, or if the time comes to downsize your portfolio and sell the property.

Calculating your ROI

To calculate your ROI on a kitchen upgrade, consider the following factors:

Cost of renovation: Estimate the total cost of materials and labour. You may find that your labour costs could be reduced significantly by opting to purchase the kitchen and using our in-house maintenance team to do the fitting.
Increased rental income: Calculate the additional monthly rent you can charge thanks to the added value of the upgrade.
Time to recover costs: Divide the total cost of the renovation by the additional monthly rental income to determine the payback period.

For example, let's say the average kitchen renovation costs £7,500 and increases your monthly rental income by £100, the payback period would be 75 months (or 6 years and 3 months).

If you consider that a well-fitted modern kitchen can last you anywhere from 10 to 25 years when looked after, you can consider all of that additional rent profit, following the initial payback period.

Long-term benefits

Beyond the financial benefits, a well-maintained kitchen can also:

Attract high-quality tenants: A new, well-equipped kitchen is likely to attract high-quality tenants who will be more inclined to pay a higher rental amount and stay in your property for a longer period with access to high-quality facilities.
Reduce maintenance costs: A well-designed kitchen can minimise the risk of plumbing or appliance issues, saving you money in the long run.

Investing in a kitchen upgrade can be a highly profitable decision for rental property owners. By carefully considering the costs and benefits, you can maximise your ROI and attract high-quality tenants. Making smart decisions to help reduce the immediate cost of the installation can help drive that ROI even higher, such as opting for our installation service over that of the kitchen providers.

If you're thinking about how to add more value to your property, have a word with our Works Manager, Jack, to find out more about how our Team can add value and help you reach an even greater ROI for your portfolio. Call him on 01482 562 562 or drop him an email.

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