When you enter into a rent-to-own contract, the home is technically yours. In most cases, this means that you are responsible for caring for the home.
Sometimes this includes renovating the less attractive aspects of your house.
Even after you have bought the home and the deed is in your name, there will come a time when it is time to upgrade. If you have a home in a very desirable area, or just in an area you love, it is usually a better financial move to renovate your home than deal with the moving expenses and fees that come along with getting a new home.
Here are five things that you can do to improve the look of your home and will ultimately raise the value of our home. You could end up getting all your money from renovating back when you sell the home for a significantly higher price than you bought it!
1. First floor bathroom
Many older homes do not have a first floor powder room. This can get very cumbersome when visitors constantly have to be going up and down stairs to use the restroom. A good solution? Use a closet. You can get a bathroom into a very small area- a large coat closet or under-stair closet can solve this problem for you. Just try to get as close to existing plumbing pipes as you can (near a kitchen or under another bathroom). If you have to start building new pipes and vents, it gets more expensive. This renovation would cost you anywhere from $10,000 to $30,000.
2. Master bedroom
Again, many older homes have a very small area for the master bedroom, without a bathroom! If you are having this problem, there are two things you could do: Steal a bedroom or build over the garage. If there is an adjacent room, knock out the wall. Many people decide to do this after the kids go to college. If you really need that extra room, build into the attic. You want to keep the general room count of the neighborhood. If you live in a place where most houses have 4 bedrooms, it could hurt to knock that down to 3 in your house. This renovation could cost anywhere from $40,000 to $80,000.
You can also build over the garage. This can get more expensive as you have to tear out the roof and build up the support for the extra weight. You will also need to have an entrance from the main house, and ventilation to get rid of car fumes. This will still save you more than having to build a $10,000 foundation for an addition. The total cost for this could be between $50,000 to $80,000.
3. Not enough bedrooms
For this situation, you can convert the attic. A lot of homes that have very few rooms, also have attics. You will need a staircase, however, and you need to make sure there is enough room to make it comply with codes. But, if the roof is too low, you can always raise the roof a bit to give more space. This renovation could cost you anywhere from $20,000 to $60,000, depending on whether you want to add stairs, raise the roof, or add a bathroom.
4. Small kitchen
You can break down the wall between the kitchen and dining or living room. This will open up your space and give you the opportunity to add a bar area or island. This can seriously improve your living situation and give you the look of a brand new home. This could cost you between $5,000 to $8,000. If you want to completely re-do your kitchen, add $30,00 to $100,000 depending on what you want to do.
A hanging addition would give you the appeal of a regular addition without the cost of a foundation. There are regulations about how high and large the additions can be, but if you go for a U shape area, it could really improve your space. This would cost you about $10,000 to $15,000 plus the cost of the full remodel.
5. No play space
Many new homes have large areas for entertainment or play rooms. However, older houses do not have that. So, think about going under your house. As long as you have a high enough ceiling (many areas ask for 7 feet, but check your codes) finishing your basement could add huge value to your house. This would cost you $30,000 to $50,000, depending on how much work was needed and if you wanted to add a wet bar, bathroom, or needed pumps to get rid of extra moisture. Finishing your basement could seriously improve the value of your home, but also makes it much more beautiful and enjoyable.
If you are considering moving because of cramped space or a growing family, consider remodeling instead. It could save you thousands and make you feel like you got a new home without having to go through the hassle of moving.
If you are considering rent-to-own, don’t just look at the house that is in front of you. If there are one or two things that you don’t love about the house, consider fixing them up instead of just buying a more expensive house that has those things already. It will probably raise the value of the house in the long-run and you get the advantage of remodeling your own home to the exact way that you want it!
Rent-to-own gives you a lot more options than just renting. Not only do you get to eventually own your own home and put your rent towards purchasing, you could also remodel your new house however you want! Even if your landlord asks you to wait until the deed is in your name, you could begin the planning and saving process as soon as you move in. Any home can be a rent-to-own home, and with a few remodels over the years, it could be the only home you ever need to buy!
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