Hidden renovation costs can quickly eat up your profits when it comes to Fort Myers real estate. Learn more about what to watch out for in our latest post.
When buying an investment property, there will likely be all sorts of renovations you would like to make. It’s important to know which will kill your profits and which will provide a solid return on investment. Below, we will discuss some of the hidden renovation costs to watch out for when making improvements to your Fort Myers investment property.
Getting It Up To Code
Renovating older houses, in particular, can present challenges, especially if previous renovations don’t meet current standards. Bringing the property up to code after inspections may disrupt plans, necessitating the removal and redoing of prior work to comply with current building codes. It’s crucial to verify that permits were obtained for past renovations and that all work passed inspection before commencing any new renovations. This proactive approach helps prevent unforeseen complications and ensures compliance with regulations, ultimately saving time and resources in the long run.
Permit Costs
Obtaining building permits is crucial for any work done on your property, regardless of its scale. Whether it’s a minor improvement or a major renovation, filing the correct paperwork with the local permitting department is necessary. Permits are typically required for additions, significant home renovations, electrical and plumbing projects, as well as new construction. The cost of permits varies, ranging from a few hundred to several thousand dollars, depending on the nature of the work. Securing the appropriate permits is paramount as failure to do so can lead to serious repercussions in the future.
Pest Problems
Once renovation work begins and the house is torn apart, unexpected discoveries are common. Whether it’s termites, mice, raccoons, or a colony of gophers, dealing with these unwanted occupants can be costly. Additionally, addressing pest infestations can cause delays in the renovation process. It’s crucial to promptly address any signs of infestation by hiring professionals. Taking swift action at the first sign of pests ensures that the issue is dealt with effectively, minimizing disruptions and preventing further damage to the property.
Child and Pet Care
If you are living in the home during a renovation project with your pets or small children, you might have to pay for extra care while the work is being done. Many people bord their pets as to not frighten them and to keep them out of the way. If you are doing much of the work yourself, it can be dangerous for a toddler to be running around. To keep everyone safe, kids will often be sent to the sitters during the periods of heavy construction.
Water Damage & Mold
When undertaking renovations in a home, it’s not unusual to encounter signs of water damage and mold once a portion of the structure is torn apart. Addressing these issues can be a costly endeavor. It’s imperative to identify the source of the water and assess the extent of the problem. Professional removal of mold is necessary, and repairs will be needed for any items damaged by the water leakage. It’s essential to address these issues promptly to prevent further damage and ensure the safety and integrity of the home.
Underbidding and Unplanned Costs
Without fail, you will find yourself dealing with unplanned costs and expenses. Bids will often be low and new things will inevitably come up along the way. It’s a good rule of thumb to budget 10-15% of your available funds for hidden renovation costs. You don’t want to find yourself in a situation where you are out of money with the project not yet completed. By adding this to your budget ahead of time, you can be sure you won’t go over budget or get stuck with unfinished projects.