Renovation for Rental Properties: Tips & Costs to Expect in Malaysia

If you own a residential investment property and are planning to rent it out, investing in renovations can be a smart way to attract quality tenants and boost your rental income.

But which renovations are truly essential? You don’t want to go overboard and risk diminishing your returns. This article will help you get an idea of how much renovation costs in Malaysia for rental properties. This clearer picture allows you to make informed decisions that balance value and expense to maximise long-term profits.

Conduct a thorough home inspection before renovating

Before diving straight into renovations, it's a good idea to conduct a home inspection.

A thorough inspection can help you determine whether your property just needs some cosmetic touch-ups or if bigger issues need urgent attention. Knowing what you need to fix before you start can help you effectively plan your renovation by prioritising tasks and allocating your budget wisely.

It is worth engaging a professional to conduct your home inspection. They have the expertise to identify issues that might not be visible to an untrained eye. Here’s an estimate of how much it costs to engage professional home inspectors in Malaysia.

Avoid falling into trend traps

There are many advantages to renovating your rental property. First, it can make your rental property stand out in the market. Second, you can plan your renovations to appeal to potential tenant preferences. Although these are advantageous, you should also be wary of overtly following trends or tailoring your renovations to a specific potential tenant's taste.

Trendy styles or specific tenant requests can quickly become outdated, limiting your property's long-term appeal. Instead, focus on renovations with classic, timeless designs that stay attractive over the years. Here are some tips:

• A fresh coat of wall paint in neutral colours like white, beige, or grey creates a clean and welcoming atmosphere, allowing potential tenants to imagine adding their own personal touches.
• Painting the front door, grill, or gate a fresh white colour can create a strong first impression.

This approach will make your rental property more appealing to a broader audience, ultimately making it easier to rent out and reducing the need for frequent updates.

Choose high-quality, low-maintenance materials

It’s best to invest in high-quality, low-maintenance materials for your renovations. Although they may have higher upfront costs, the investment will pay off in the long run. These materials will last longer and reduce the overall upkeep of your investment property.

Here are some recommendations for high-quality, low-maintenance materials and their estimated price range.

Upgrade your appliances and air-conditioners

Your appliances and air conditioners don’t need to be top-of-the-line, but it's important to replace them if they are nearing the end of their lifespan. Here’s a recommended timeline for when to consider replacing these essential items and estimated costs for new units.

Brighten up your space with proper lighting

Lighting needs can vary significantly between landed properties and condos. Landed properties, especially bungalows, often benefit from ample natural light due to their design and outdoor space. In contrast, linked houses and high-rise units may require strategically placed light sources to compensate for limited windows and reduced access to natural sunlight.

If your property feels too dark, consider LED lights. Not only are they energy-efficient, but they also last longer and are easier to maintain. Opting for white over yellow light is recommended, as it offers a brighter and more vibrant feel. Additionally, ensure that your light fixtures are simple, easy to clean, and designed for tenants to replace light bulbs with minimal effort.

Conclusion

In conclusion, creating an inviting and appealing rental property requires thoughtful renovations, prioritising timeless designs, high-quality materials, and effective lighting. By taking these steps, you can cultivate a space that meets the needs of potential renters and stands the test of time, ensuring a successful property investment.

For financial support to invest in your rental property renovations, discover our renovation financing solutions here.

💡 The information provided above is purely for educational purposes.