Normally, building an extension is something homeowners who live in their house choose to do. Their reasons could be due to a lack of space, the desire for an extra room or simply just to add value to the property. Adding an extension is a costly decision, which is why many landlords tend not to do it for the properties in their portfolio. It is a big investment and only those living in the house receive the benefit of the extra room.
However, if an extension provides a significant amount of extra value to a property, it can enable a landlord to receive higher rental yields. Although this will only be worthwhile if the costs are lower than the returns. Depending on the type of property you own and the tenants you hope to attract, there is a lot to consider when making plans to extend. What you must remember to plan for, if any extensions take place, is an up to date landlord insurance policy.
What Room Should You Add?
Extra bedrooms are ideal for student tenants. The number of rooms a group of students need from a rental property can range from three to seven. Typically it tends to be four or five so with a great abundance of three and four bedroom houses available to buy, it is worth considering an extra room if you’d like an increased amount of rent payment each month. Similarly, an additional bathroom is appealing to students as there will always be a morning rush for the bathroom when they prepare for lectures. For families, an en suite may be a more appropriate addition.
Larger living rooms or kitchens are an attractive feature for young families, who will spend a lot of their time in these rooms. If a kitchen is of a good size and contains very modern fittings, it has the potential to substantially increase the value of a property – second to another bedroom.
Dining rooms are a nice addition in order to create a ‘complete’ home, but they do not add a lot of value to a property. If the living room is large enough, a table can comfortably fit in or a breakfast bar could feature in the kitchen.
What Kind of Extension?
Loft conversions are an option, but they tend to be better suited as bedrooms or living spaces. Single storey extensions to the rear are the most common. What’s great about them is that they can provide a platform for a second story if you desire to extend your property further.
When choosing whether to have an extension, you need to consider a lot more than just your budget. Planning permission is the first obstacle to overcome, followed by finding a reliable building company that can offer you the best advice on what would work best for your land and how long it will take.