Buy-to-let landlords and property investors don’t just want to create a comfortable home, they want to maximise their returns. Strategic home renovations can be transformative for any property, taking a run-of-the-mill property and updating it into a modern, comfortable, and functional space that boosts rental yields and increases long-term capital appreciation.

However, not every property improvement you make will add genuine value. You need to know what you should improve and where. Turning properties into profitable investment opportunities is a balancing act that requires carefully considering upfront costs against potential gains to ensure your budget works as hard for you as possible.

In this article, we will explore the top home improvements for buy-to-let investors that add real value to a house; increasing saleability, boosting rental yields, and turning ordinary homes into long-term, profitable assets.

Real Value Over Aesthetic Changes

While cosmetic property changes can make a home more attractive for potential tenants or buyers; they don’t necessarily add value. As a property investor or buy-to-let landlord, you need to understand which home improvements go beyond surface-level improvements and instead add real value to your property. With the right improvements made to your property, you can:

• Increase property value 
• Reduce long-term maintenance costs
• Improve rental demand

Smart and strategic home improvements can add significant long-term value to any property, paying in dividends in the years to come.

What Adds Value to a House?

Let’s take a look at the best home improvements experts suggest to increase value and investment potential. The following are listed in order of priority so that you can start making changes where they will have the biggest impact.

Let’s get started.

Kitchen Upgrades for High Returns

The kitchen is often referred to as the heart of the home. It’s where family and friends gather for meals, late-night snacks, and drinks. It is the most used room in the home and starting here with your home improvements can certainly have the biggest impact. But don’t worry, it doesn’t have to be expensive.

Durability and Low-Maintenance

Our advice is to focus on durability and low maintenance. This means investing in hard-wearing worktops that are easy to clean and tiled backsplashes to catch any spills. 

Hardwood or tiled floors are also best and wipe-clean ovens can save a lot of scrubbing between rental tenants. For windows, blinds are a practical choice in kitchens. They’re easy to keep clean, stand up well to heat and humidity, and give you flexible control over both light and privacy - ideal if your kitchen looks out onto a busy street with pedestrians often peaking in.

High-Quality Appliances

Investing in quality and integrated kitchen appliances can add a great deal of value to your property. From self-cleaning ovens to modern kitchenware, bringing your kitchen into the 21st century is hugely attractive for tenants and buyers.

Maximised Storage

If there is anything that UK properties need more of, it’s storage. Maximising available storage, particularly in the kitchen, is a huge draw for potential tenants and buyers. So, install shelves on empty walls, mount racks and hooks for utensils, pots, and pans. Install deep cabinets and drawers, and leave space on top of cabinets for storage bins. The more storage space you create, the better.

Thoughtful kitchen renovations like these can raise your property’s value by 5-10%, adding an additional £79,000 to your property’s selling price. That’s a difference that’s not to be sniffed at!

Bathroom Modernisations

The bathroom is one of your property’s biggest turn-offs for potential tenants and buyers. From mould in the grout to outdated suites, there’s a lot that can put people off. 

What’s more, did you know that 1 in 5 privately rented properties in the UK fall below the Decent Home Standard? So, making specific changes to your bathroom can make a big impact. 

Here are a few sleek and modern suggestions that will take your bathroom to the next level:

Black Bathroom Fixtures

Black fixtures are becoming a fashionable staple for bathrooms and other spaces around the home. Not only do they look sleek and high-end, they are also easier to keep clean and maintain, as opposed to stainless steel which requires constant maintenance to look shiny and new.

Underfloor Heating 

Nobody likes getting out of the shower to stand on cold bathroom tiles. Installing underfloor heating in your bathroom may not be a visible change people are immediately aware of, but it will certainly increase your buyer’s or tenant’s comfort.

Neutral Colour Palette

Neutral colour palettes create a clean and welcoming aesthetic. They are especially ideal in rental properties as they complement a wide range of interior design and style choices. This allows your tenants to create a space that feels like their own.

Freestanding Bath

If your bathroom has the space for a bath, opt for a freestanding tub. They look gorgeous and create a luxurious, spa-like feel. What’s more, from a practical point of view, they are easy to install and maintain, making them a low-hassle choice for buy-to-let landlords and property investors. 

A full bathroom renovation can increase property value by 4-5%. For a £250,000 property, that adds around £10,000 in value.

Adding Extra Space

Sometimes your property just isn’t big enough. Whether you want to house more tenants or you’re hoping to sell your property to a family, having more space never goes out of style. 

Here are a couple of ways you can add extra space (and value) to your property:

Loft Conversion

A loft conversion is one of the most effective ways to add extra space, functionality, and value to your home. You can transform unused attic space into another bedroom, living area, office, bathroom, or even a playroom. Basically, if you want extra space, a loft conversion is the way to go.

According to The Conversion Guy, depending on your property’s geographical location, a loft conversion can add up to 20% in value - that’s up to £150,000 in price.

Extension

Expanding the living area in your property via an extension is a great way to add extra space and attract families looking to buy. Both single and double-storey extensions are good options and can increase house value by 10-25%.

Basement Conversion

Converting a basement space is especially popular in city locations where many people live in terraced properties that dip below street level. Having a basement level adds value to a property, creating extra space that can be used as a home gym, office, kitchen, or additional bedroom.

How to Add House Value Externally

Of course, in addition to the interior buy-to-let home improvements you can make, it’s important to add value to your house externally. Exterior home improvements can have a big impact on whether people show interest in your property, impacting tenant uptake and fast sales.

Here are a few upgrades you can make to your property’s exterior that will attract people in and also add value:

• Repainting or replacing cladding
• Landscaping and introducing low-maintenance gardens
• Adding off-street parking (a huge plus in busy city locations)
• Installing modern front doors with smart locking systems and security features
• Installing a garage 

Improving your property’s curb appeal isn’t just about making it attractive to potential tenants and buyers; it also helps with marketability, reduces void periods, increases property viewings, and - more often than not - speeds up sales.

Home Improvements for Maximum Returns

As you can see, there are numerous strategic home improvements you can make (without breaking the bank) to see a maximum return on your investment. Whether you are a buy-to-let landlord or a property investor, the question isn’t whether you should renovate, it’s how you can renovate to increase property value in a way that lines up with your investment goals.

We hope the tips we’ve shared in this article help transform your property into a highly profitable asset that not only attracts quality tenants or buyers but also delivers long-term capital growth.

NB:This content was produced in partnership with Hillarys.