Maintaining rental properties in good order is crucial to attracting and retaining tenants and ensuring the best possible income. However, the decision to renovate or replace can often be tricky, especially when balancing cost with long-term returns.  

Clan Gordon has almost 20 years’ experience in Edinburgh’s lettings market and can share valuable advice about the most cost-effective projects to undertake and those that are unlikely to deliver a return on investment.  

Renovate Or Replace? 

The decision between renovation and replacement hinges on several factors, such as the item’s current condition, the expected longevity of repairs and how much value the upgrade will add to your property. Renovations are typically cosmetic or functional updates, such as repainting walls or retiling a bathroom, while replacements involve a major overhaul like installing a new kitchen or bathroom. 

While renovating can often extend the lifespan of existing features at a lower upfront cost, replacing may be more beneficial in the long term if the items are beyond their best or outdated. For Edinburgh landlords, evaluating both the immediate and long-term benefits of either option is essential. 

Pricing Up Property Renovations For Landlords 

One of the most significant concerns for landlords is the cost of renovations and upgrades. Renovations can be more affordable in the short term, with minor repairs, painting and upgrading fixtures typically costing less than a complete replacement.  

Repainting the interior of a property may cost only a few hundred pounds, depending on the size of the rooms and the quality of paint used. This relatively low-cost upgrade can significantly improve the property’s appearance and attract new tenants. 

Replacements, while a more significant upfront cost, can increase the property’s value and justify higher rental rates. A new kitchen, for instance, costs upwards of £5,000. Though this is a significant investment, it can elevate your property to a higher rental bracket, allowing you to charge more and recoup the expenditure over time. The same principle applies to bathrooms, with replacement costs dependent on the level of luxury. 

However, it’s essential to do the calculations and work out what it’s worth spending and how likely you are to recoup the costs. Installing a £20,000 kitchen in a one-bedroom flat is an investment that might never pay for itself unless you have a luxury property attracting high-paying tenants, but money spent on new cabinet doors and appliances could easily be recouped.  

Landlords who invest wisely in their property can increase rental yields and property value, helping to recoup costs in just a few years. 

Easy Wins – Worthwhile Rental Property Renovations 

Certain renovations offer significant benefits with minimal expense, which is worthwhile to attract tenants and make your property more desirable. 

• Repainting Walls: A fresh coat of paint can instantly refresh a property and is one of the most cost-effective renovations. Choose neutral colours like white, grey, or beige, which appeal to a broader range of tenants. 

• Updating Fixtures: Replacing light fittings, door handles, blinds, and curtains can modernise a space without the need for a full renovation. Carefully choosing quality, eye-catching pieces can instantly make a property look more luxurious.  

• Flooring: If your carpets are worn or your flooring looks tired, it significantly impacts the property’s appearance. Consider replacing it with more durable and modern materials like laminate or lino. These are both cost-effective and long-lasting, especially for rental properties that see frequent tenant turnover. 

Major Upgrades – When Landlords Should Spend  

There comes a point when items are past renovation, and you have to bite the bullet and replace. However, it’s important to set a budget and stick to it, or you could easily find yourself out of pocket. Kitchens and bathrooms are the two main contenders for major upgrades, but they are also the most expensive. 

• Kitchens: One of the most important rooms in a rental property, and the ‘wow’ factor can certainly win over tenants. If your kitchen is outdated or in disrepair, replacing it could significantly increase your property’s appeal. A modern, well-equipped kitchen can attract long-term tenants and allow you to charge premium rent, but be careful not to overspend. 

• Bathrooms: Like kitchens, bathrooms are high-traffic areas that take a lot of wear and tear. Replacing an old, dated bathroom suite with modern fixtures can be a worthwhile investment, especially if the current bathroom is causing frequent maintenance issues. 

What To Consider Before Investing In Your Rental Property 

Before deciding to make an investment in major upgrades to your rental property, there are a few things to consider. 

• Assess Property Value: Before making any major investments, consider your property’s current value and the potential increase post-renovation. Research local property values and rental rates to ensure you’re not over-investing in a property with limited potential. This is something our team is happy to provide guidance on. 

• Tenant Needs: Consider your target market when planning renovations or replacements. Families are likely to prioritise functional kitchens and bathrooms, while young professionals might value modern aesthetics and energy-efficient appliances. 

• Choose Reliable Contractors: Whether you’re opting for a renovation or a full upgrade, always hire trusted, reliable contractors to ensure the work is done to a high standard. Poor workmanship can lead to more problems down the line, costing you more in repairs and replacements. At Clan Gordon, we manage renovations and upgrades for our landlords using our trusted team of local tradespeople so they can be certain of excellent service every time. 

The decision to renovate or replace depends on the condition of the property, your budget, and the potential return on investment. By making informed decisions and prioritising cost-effective updates, Edinburgh landlords can maintain desirable properties and recoup their expenditure over time.