Increasing rental value in a buy-to-let property is one of the best ways to get the most out of your investment. There are many methods for raising rent, one of which involves improving and updating the bathroom. Along with the kitchen, tenants place extra emphasis on having a modern bathroom.
Landlords who successfully increase the rent on their buy-to-let investment properties do so because they can attract the highest-paying tenants. Renters have growing expectations, and modern homes with a bathroom to match will be high on their list of priorities.
But just how much more rent can you charge for a buy-to-let with a modern bathroom? And what will be its overall impact on the property value? In this article, we’ll look at how having a more modern bathroom can help you raise the rent, as well as how much value it could add to your investment.
It’s well-known that renovations and home improvements can increase the overall value of a property. Those same improvements will also help a property’s rental value increase, allowing landlords to maximise their returns.
A brand-new bathroom has the potential to add up to 5% to a property’s value. If your buy-to-let investment is worth £350,000, a new bathroom could raise the price by as much as £17,500 — with complete refurbishment costing around £2,500 at the lower end of the scale.
Determining rental figures based solely on room upgrades is slightly harder than predicting overall house value. However, any property that increases in sales value will also enjoy a rental rise while making it even more appealing to renters.
How you choose to refurbish your bathroom depends on its current condition. Some landlords may prefer a complete refurb, gutting the old bathroom and installing a completely new one. Others, however, might decide to make smaller upgrades to the amenities — such as a new shower or sink.
The most expensive option involves fitting an entirely new bathroom. While it might be the costliest, it’s also more likely to have the most significant increases in rental and sale value. If you’re currently operating in a competitive rental market, opting for a bathroom refurb may be the best option to compete against similar properties.
Upgrading only the bathtub and shower might be enough to increase rental value, especially if the bathroom has enough space for a separate version of each. Even if you can’t add a standing shower and bath, you can explore upgrading to an electric shower in the bathtub. Another option involves replacing the current sink and toilet with modern upgrades. Not only will it look great, but you’ll be saving time and money by mitigating potential appliance repairs and any resulting damages from leaks and the like.
Creating more storage and space in the bathroom can be helpful, especially for tenants who have lots of toiletries and nowhere to keep them. Think about adding more storage with sinks that have built-in drawers, installing a bathroom cabinet on the wall or using stacked plate racks that blend in with the appliances.
Tiles not only look good, but they also make upkeep easier. The result of tiling your bathroom will be happier tenants that have a modern space that is easy to clean. Tiles can also transform the entire look of a bathroom without having to do a complete refurb on the appliances.
It might be worth exploring the option of adding a second bathroom, especially if you have a property with more than one bedroom. An extra bathroom can make the property feel more luxurious while offering tenants greater options and privacy when more than one person is living in your buy-to-let.
Underfloor heating is a popular feature with tenants, especially during the winter months. Smart tech is also becoming more frequent around the home, thanks to items like smart mirrors.
Bathroom refurbishment can take anywhere between 10 days and a month, depending on the size of the project and the work required. You also need to decide if you’re going to fit the bathroom yourself or hire a tradesperson to do the job.
If you opt for a tradesperson, it’s worth getting a few quotes before awarding the refurbishment job. Checking that they have the relevant experience, as well as qualifications, is essential to finding the right person for the job.
Some other aspects to consider include:
If you’re looking to save costs, it might be worth doing the work yourself. However, you should only undertake a bathroom refurb if you’re confident that you can carry out the job. Trying to save money in the short term can lead to long-term costs if you don’t have the required experience.
The obvious benefits of refurbishing your bathroom are increased rental income and a higher property value once the work is complete. But there are other advantages that can make installing a modern bathroom worth your while.
New bathrooms tend to be more energy-efficient, which will cut down monthly electric and water bills. Tenants will be more enthusiastic about properties where they know the monthly utility bills will be more cost-efficient.
A new bathroom improves the overall look of a property, making it even more appealing. It could last for 10-15 years too, meaning it’s a long-term investment. A modern bathroom may also be more eco-friendly, as an increasing number of modern-day appliances are built with the environment in mind.
Finally a decorating tip from the Blueground’s team: add some life and a touch of green by bringing in an aloe vera, Boston fern or orchid. All of them love a humid environment and your prospective tenants will love the extra finish that will only cost you a few quid.
Once you’ve updated your property to show its best sides, consider leasing it to Blueground. We’ll completely furnish and equip the space, making it move-in ready for tenants. And, giving you the opportunity to increase your rental yield. Then, we’ll let you sit back, relax and collect your passive income, while we take care of the rest.
Blueground acts as a tenant, guaranteeing owners receive their rent monthly – regardless of rental gaps, and downtime while professionally cleaning your home before the next guest. When the property is occupied though, we’ll handle the tenants and manage any issues that may arise. Your property will be in very good hands.
That bathroom refurb you’ve worked so hard on will make the perfect home away from home for a long-term business traveler or digital nomad. Furthermore, at the end of the multi-year agreement with Blueground, you have the opportunity to keep the furnishings and our design team’s aesthetic. Blueground truly is the ideal tenant for London property owners.