RENOVATING FOR PROFIT: 3 KEYWORDS TO SUCCESS
If you want to be successful in your renovating-for-profit venture, you certainly need to develop certain skills and surround yourself with excellent professionals who can support you in this quest.
But what are the most important areas to pay attention to when dealing with a renovation project?
In this short article, I will analyse three key words and core areas that you certainly need to be able to handle well to successfully complete the renovation phase of a project.
I am assuming that you already know how to acquire the best property, evaluate the project, acquire and finance it the best way possible for you, pick the most cost-effective improvements, and made the design and decorating choices that will bring you the best returns.
Photography by Valeria Romano
What are the most important areas to pay attention to when dealing with a renovation project?
KEYWORD NUMBER ONE: TIME
Probably the majority of us have started renovating for profits as a side activity to our full time jobs, others have had the opportunity to jump in fully, from the word go. Whether you belong to the first category or the latter you need to be able to manage time during a project. ‘Time’ is not only your own time, the time you need to find to be able to attend the site and work around all the problems and questions that will arise (note that this can partially be covered by a project manager, if you have the budget for them). It also means, the time to chose the right items to pull out a cohesive scheme, the time to shop around to find them at the best price possible, the time to order them and deal with any shortcomings that suppliers might throw at you.
… time to chose the right items to pull out a cohesive scheme, the time to shop around to find them at the best price possible, the time to order them…
Photography by Valeria Romano
Working with time also includes working under pressure, and pressure can arise from a number of issues such as financial deadlines, weather constraints, lead-times for the items purchased and so on.
KEYWORD NUMBER TWO: SYSTEMS
There are a number of elements forming a renovation project: time, budgets, receipts, trades, suppliers, neighbours, dust, debris, personalities, clashed, unforeseen events, pleasant discoveries, … and the list never ends.
Organisation is crucial, so, ensure that you have a system in place for tracking budget, time and items supplies. The correct system should allow you to check what progress the project has made so far by pointing out at any point in time
what phase the project is on
what budget has been spent
where was the budget spent
what the remaining budget is
where the remaining budget is allocated
what phase comes next
A well structured Gantt chart is an essential tool - I like having mine connecting budget allocation with expenditures, so that at each point I know what the balance allowance is and where it is going to be spent, how much I have spent on each phase and how much I can afford spending from now on and where.
Photography by Valeria Romano
Ensure that you have a system in place for tracking budget, time and items supplies.
Organisation will also help you stay disciplined and follow the initial plan and therefore achieve the so important cohesive scheme you should be aiming at.
KEYWORD NUMBER THREE: COMMUNICATION
It is all well if you know all the above and you know how to manage it. However, no project can go ahead without effective communication.
Whether it is being able to say what you see the space being like after the renovation, or whether to manage tell your trades you are not particularly happy with something, you must learn to approach your listener and carry across your points.
One of the most frustrating situations for trades is having to try to interpret what their client is trying to achieve and having goals changed continuously.
One of the most frustrating situations for trades is having to try to interpret what their client is trying to achieve and having the goals and project details amended constantly. One of the most frustrating experiences for the client is having the trades not executing the job as they thought they so well communicated across, and having the renovation bills rising up to carry out amendments.
Here is where having something to aid communication and surrounding yourself with good trades and professionals, really pays off... it speeds up the project and gets the goals achieved with less frustration and unnecessary expenses.
IN CONCLUSION
Renovating for profit is a science that needs organisation and planning. Lack of plan, organisation, and discipline will ultimately affect your ROI. That is why my interiors for profit formula I have a system by which the budget expenditures are set prior to spending the first penny on the project. That way, if something needs to be re-giggled, it can be done without halting the projects and without affecting the final feel of the space.