Renovating your rental investment is one of the keys to optimizing your rental’s profitability. Renovating your property, by targeting the work effectively, will effectively increase its value. This allows you to increase your rental income thanks to higher rent.
With a refurbished property, you’ll have no trouble attracting tenants. A newly renovated property promises long-term occupancy, so you’re guaranteed a steady income stream over the long term. However, this project requires careful planning ! The key solution: professional support.
Safety and comfort improvement work will take center stage. Energy renovation work is generally part of a renovation project . INSEE figures highlight their importance! Nearly 5 million homes have a poor energy rating.
So what’s the point of renovating your property as a rental investment ? What work should you consider? How should you choose a renovation company ? Here’s an overview!
What is the benefit of renovating your rental investment ?
Improving a property maximizes rental profitability while allowing you to offer the property at a higher price upon resale. This improvement encourages you to comply with current regulations. In addition, grants and tax incentives are among the main benefits of such a project.
Boost your rental profitability!
Renovating your house , apartment , or building is the perfect way to increase its value. The goal? Adapt the property to the tenants’ needs! This will make it easier for you to quickly find occupants willing to pay a high rent. Improving the overall condition of your property protects you from prolonged vacancy.
But how does it positively impact rental profitability? Better energy performance means a 10 to 15% rent increase. Renovating key rooms like the kitchen and bathroom is also a way to increase rent. And the chances of attracting potential tenants will be high.
Comply with legal and regulatory obligations!
The law governing the rental of real estate is constantly being strengthened. It aims to protect tenants and ensure they enjoy optimal comfort. Energy performance regulations, for example, have been in force since 2023.
Following the rent freeze, the Climate and Resilience Act has removed thermal sieves from the rental market since January 1 , 2025, particularly for G-class housing. This measure will gradually apply to F-class housing. Do you want to continue renting and benefit from a high income? Plan an energy renovation project for your property.
In addition to energy improvements, the work will also ensure compliance with various electrical and safety standards. Renovating a rental property therefore protects you from potential penalties.
Benefit from financial aid and take advantage of tax incentives !
The cost of renovation work is generally high. This can deter many owners from improving their rental property. However, it is possible to benefit from a reduction in expenses for your project! Financial assistance can cover part of certain types of work. The MaPrimeRenov’ scheme or the eco-PTZ are among these. If you meet the eligibility requirements for these grants, you are sure to make significant savings.
Renovating a rental property can also provide you with attractive tax benefits. If you purchase an existing property, you can renovate it while still benefiting from the Denormandie scheme. Opting for LMNP (Non-Professional Furnished Rental) status is also a way to deduct the work and reduce your property tax bill.
What work should be prioritized to successfully renovate a rental property ?
Not all renovations are created equal! Only the most cost-effective ones should be considered in your project. These include those aimed at improving tenant safety, comfort, and the functionality of spaces. Modernization work in certain rooms should also be considered to enhance the value of your property.
Work to bring standards up to standard and ensure safety
Home safety is one of the main criteria for tenants when choosing a property. If a professional inspection reveals problems with the structure or electrical installations, upgrading work is essential. These improvements will be made based on current standards.
In addition to protecting tenants, this work also protects your property and prevents breakdowns that can cost you dearly. Hiring a team of experts like Reno is highly recommended. The expertise of professional craftsmen will ensure the reliability of the work.
Energy renovation work to improve the DPE rating
Did you know that the DPE (Energy Performance Certificate) directly affects the profitability of your rental property? It is closely linked to the value of your rental property. Moreover, tenants pay attention to it, as your property’s energy label must appear on your rental advertisement.
A poor energy rating will drive tenants away, but why? Simply because it rhymes with excessive energy consumption and a lack of comfort! Conversely, a high energy performance, reflected by an A or B rating , will attract tenants. This type of housing provides them with optimal comfort in all seasons, while reducing their expenses.
Do you want to optimize your rental yield? Plan an energy improvement! Financing energy improvements is made easier thanks to available grants. By entrusting the work to RGE-certified contractors, you can reduce your construction costs while ensuring the quality of the project.
Many improvements can be made:
- Insulation of walls, roof and floor;
- Installation of double-glazed windows;
- Installing a more efficient heating system…
Once the rental property has been renovated, don’t hesitate to enhance the energy class gain by renewing your DPE.
Modernizing the kitchen and bathroom
When renters are looking for a home, they pay more attention to certain rooms than others. The kitchen and bathroom are essential spaces for them. A well-equipped kitchen with a functional layout can be enough to encourage a tenant to schedule a viewing. The same goes for the bathroom.
Take advantage of this interest in these rooms to optimize the profitability of your rental. Don’t hesitate to modernize these spaces . Opt for modern and durable materials, install high-performance equipment, create a pleasant living atmosphere…
With a renovated kitchen or bathroom, you can benefit from a rent increase of up to 10%.
Optimizing space to boost rental profitability
An apartment or house with a functional layout easily finds a tenant. Reconfiguring spaces is therefore an option to improve rental profitability. What can be done? Adding a room to an apartment, for example, will make all the difference. This extra room will allow you to effectively increase the rent.
Removing a partition to open up the space in a rental property and allow light to circulate also improves the appeal of a property. Tenants appreciate homes where every square meter is used intelligently. So consider using wasted space to create an office area, a relaxation area, or simply storage. With the help of an interior designer , you can benefit from a tailor-made layout .
How much does it cost renovating your rental investment property ?
The cost of renovation work on a rental property varies, ranging from €200 to €1,400 per square meter. The estimate depends on the nature and extent of the improvements to be made. The size of your rental property can also affect costs.
On average, a light renovation , including minor repairs, flooring, or wall coverings, will cost you between 200 euros and 500 euros per square meter. For partial renovation work , expect to pay between 500 euros and 900 euros . This type of work can include kitchen and bathroom renovations, as well as electrical work.
If you’re planning a complete renovation , including insulation, plumbing and electrical work, professional tradespeople can charge you between 800 euros and 1,200 euros . For major work , costs can reach 1,400 euros .
Knowing that several parameters can influence these costs and that professionals can set their own fees, ask for a professional estimate! Compare different quotes. Pay attention to the different information mentioned, such as the costs of materials and labor, construction deadlines, and guarantees offered.
What are the regulations and legal obligations to remember before getting started ?
Before renovating your property as a rental investment, it’s important to understand the regulations governing rental properties. These include the inspections that must be carried out and the permits that must be requested before the renovation project begins.
Standards and diagnostics in the context of rental
As a homeowner, you are required to perform certain technical diagnostics. They depend on the type of your home (house or apartment). In all cases, the energy performance diagnostic is mandatory. The rental ban, already applied to class G, will soon extend to classes F and E by 2034. Anticipation will therefore be your best ally! Carry out your energy improvement work today. Our Reno company can help you!
ERP, diagnostics of electrical and gas installations, or even the presence of lead or asbestos may also be required. Find out in advance! Even if you have no obligation to carry out work, consider the results of the diagnostics and plan the necessary work to increase the value of your property .
If you’re targeting shared accommodation, you should also be aware that you must respect a minimum floor space requirement for each tenant. The minimum furniture and equipment requirements must also be met.
Authorizations required for renovation work on a rental property
Depending on the nature of the renovation work to be carried out in your rental property, permits may be required. A prior declaration of work may be sufficient in some cases. However, for more extensive work, applying for a building permit is essential.
Should you call in professionals or manage the work yourself ?
It’s tempting to take on the renovation project yourself. This option is indeed cost-effective. You don’t have to pay the fees of a renovation company. However, the risk of mistakes is high! And they can cost you dearly and jeopardize the return on your rental investment .
Hiring a renovation company to renovate your rental property remains the wisest decision. While service costs can be high, in return, you can benefit from work guarantees . The experience and expertise of professionals are a guarantee of reliability.
To control your renovation budget, consider shopping around. Get several professional quotes to compare. But be careful, cost isn’t everything! To work with the best company, do your research carefully. Check each professional’s certifications and insurance. Make sure they’re experienced in renovating your type of home . Reviews from previous clients can help you find the best professional in your area.
Renovating your rental investment : what you need to know
Renovating a rental property is a project with multiple benefits that investors should consider. When done properly, it’s sure to boost your home’s value and allow you to earn high, consistent rents over the long term.
When renovating an existing property, improving energy performance is essential. A good energy performance certificate (EPC) when renting out a property means higher rents, greater tenant comfort, and a significant reduction in rental charges.
To finance your renovation project, you can rely on assistance such as the MaPrimeRenov’ scheme, or take advantage of the Denormandie scheme to benefit from attractive tax advantages.
The support of a professional company like Reno will ensure the success of this investment. Through a thorough assessment of the rental property, professional contractors will be able to prioritize renovation work to optimize rental yield.
Set your budget realistically. Carefully select durable yet affordable materials. Identify the renovations that can positively impact your property’s rental profitability. By following these tips, the success of your investment is guaranteed!
