Have you ever asked yourself the question whether you can increase your property value through modernisation? In this article you will learn whether you can really increase the value of your property by modernising it through various measures. Which modernization measures really help to increase the market value of your house?
Apportioning the costs of modernization to the tenant – is that possible?
Both renovation and modernisation can increase the value of your property. Increasing the value of your property through modernisation is possible by having the building fitted with up-to-date equipment. These changes ensure that rented apartments, for example, are adequately equipped. Usually such work is carried out after a tenant has moved out. In fact, you can increase the real estate value by modernization in this way.
It is of course also possible to increase the value of the property while the tenant is still in the apartment. Even then you have the possibility to increase the rent. This is necessary, if only because leases usually last a long time. Wear and tear on the floor, walls or doors will show after only a few years. However, the costs of modernization cannot be recouped through service charges; this is only possible by increasing the rent.
Increase property value through modernisation or better plan renovation?
It is also possible to increase the value of the property through renovation. This includes all work that ensures that structural and technical measures contribute to the restoration of the building. For example, damage is removed. But increasing the living comfort also falls under refurbishment. This work is carried out in order to optimise or even maintain the building fabric. You can carry out renovation work at any time, even in parallel if you wish to increase the value of the property by modernising it, as these works go hand in hand. However, you must take the season into account when carrying out renovations, since there are construction works that cannot be carried out in winter.
The renovation work includes, for example
- the creation of new facades with insulation
- the installation of new windows with thermal insulation
- Installation of new water or electrical lines
- Installation of a more efficient heating system
Partial or complete renovations can be carried out. This depends on the necessity and your financial cushion.
Which renovations can you use to increase the value of the property?
If an old roof is renovated, for example if leaks are covered or rotten wood is replaced, you can increase the value of the property. In the case of very old roofs, it is possible that they will have to be completely re-roofed. It is best to commission a roofing company that carries out the renovation professionally. If you want to increase the value of the property by modernising it, it is also advisable to commission a specialist company. If the roof has to be completely re-roofed, insulation should also be included. If the attic is not used, the top floor should be insulated. Insulation on rafters or insulation in the interior is possible. This depends on the property.
The costs you will incur depend on the roof and the material used. Roofing felt is cheaper, artificial slate is more expensive, followed by roof tiles and natural slate. If the roof is newly tiled, plumbing work is also necessary. Have your gutters professionally cleaned in autumn and spring. The roof should also be inspected for damage. If it is only minor damage, it can be repaired more quickly. In this way you can reduce the risk of having to have the roof completely renovated.
If a facade renovation is necessary, insulation materials must also be used to increase the value of the property.
Which modernisation measures are particularly worthwhile and increase the value of the property most?
Do you want to increase the value of your property through modernisation? This is particularly worthwhile if you have a new heating system installed, including renewable energies or condensing boiler technology, because electricity prices are becoming more and more expensive. When choosing a flat, future tenants pay very close attention to the amount of possible additional costs. This increases your marketing chances, since you could increase the value of the property by modernising it. Did you know that not every modernisation has the same effect on value?
The location of the real estate market also determines the value. Currently, outdated bathrooms ensure that you can increase the value of your property through modernisation. High-quality interior fittings with natural stone or parquet flooring and generous floor plans are also in great demand at the moment. After all modernization work has been carried out and completed, about eleven percent of the costs can be allocated.
Is it really possible to increase the value of real estate through modernisation?
As you have now learned, it is indeed possible to increase the value of real estate through modernization. You can also increase the value of the property by refurbishment. However, it is important that you pay attention to what modernizations and renovations you need to carry out in order to increase the value of the property through modernization. In particular, the installation of efficient heating systems, the creation of generous floor plans and the construction of a new bathroom are particularly worthwhile.