Why turnkey renovations are perfect when you live abroad
You are not mistaken. Renovating a property where you make a rental investment is the best way to increase its profitability.
However, we are not all born do-it-yourselfers and carrying out a renovation on our own that requires heavy work can be scary.
Turnkey solutions exist to remedy this situation. Here are some explanations.
Why do turnkey renovation work in a rental investment?
Definition of turnkey renovation
Turnkey renovation is a type of contract comprising delegating to a team of professionals the responsibility of the work. The company will carry out the entire renovation, from the job itself to the administrative and legal procedures.
For a rental investment, the turnkey works only require the owner to play his role of project owner: to define the needs and wishes, to approve the project submitted to him by the general contractor, and finally to be present at the reception of the works.
The contracted renovation company (the prime contractor) carries out the project (design, supply of materials, installation) and ensures that the client meets its financial commitments.
The benefits of renovating a home
For many novice investors, buying a property that requires work can be scary. Cost, delay, the complexity of the renovation, and many aspects discourage the future landlord in advance.
However, there are several advantages to doing renovation work.
If only for tax reasons. By choosing the real system, the cost of the work is, in fact, considered as a tax expense that you can deduct from your property income when you file your tax return.
The tax system of the real regime works as well for a bare rent as for a furnished rent (non-professional furnished renter LMNP). Even if we advise you the furnished rental which offers more tax advantages.
Renovating a property is also the best way to improve the profitability of your rental investment.
A property renovated to the latest electrical and thermal standards is much better positioned on the rental market. You will attract more tenants and reduce the risk of vacancy.
The renovation work is, like your real estate loan, financeable by the banking institution.
Moreover, with the mechanism of the deferred repayment granted by your bank, you can start to repay your real estate loan only at the end of the work.
You repay the interest on the loan in the case of a partial deferment and only the loan insurance in the case of a total deferment. This allows you to wait until you have a first tenant in your home before repaying your loan.
What are the advantages of a turnkey renovation solution?
Maximize the profitability of your property
Calling on renovation specialists working in rental real estate is a major asset. It means that your property is analyzed and studied by investment experts. They know how to make your property more profitable.
This analysis is done by professionals (architects, craftsmen, decorators). The goal is to determine which points will improve rental profitability.
For example: should you add an extra bathroom to make it a more attractive roommate, should you move a partition to open the kitchen, etc.?
Breaking down the walls between the living room and the kitchen to bring in more light, creating a second bathroom, building a new bedroom from the living room, redesigning the layout of the rooms from top to bottom… these are all projects that many individuals would not have imagined on their own.
This is the big plus of calling on experts in renovation; you are accompanied and guided on all these subjects.
Delegating your renovation project to professionals is above all a time-saver.
Like most French people, chances are you are not an expert in renovation. Undertaking work, especially if it is complex, can therefore be very tedious and complex to manage.
Contacting craftsmen, comparing estimates, checking their insurance (e.g. ten-year insurance), ensuring that the work is well done, participating in site meetings, answering technical questions from craftsmen, and managing administrative procedures (requesting authorizations or permits)… these are some of the tasks to be carried out if you do the work yourself.
No need to go to the construction site
This is one of the strong points of a turnkey renovation; you do not have to move to see the progress of the work.
The company hired for the renovation will take care of the follow-up and keep you informed of the progress. Practical, isn’t it?
The best rental investments in France and Europe are rarely just around the corner.
To find rental profitability or an interesting real estate investment, you will have to invest sometimes several hundred kilometres from your home.
The question of the follow-up of the building site if there is work arises immediately. How to make sure that the craftsmen work well? That the building site advances correctly? Questions that usually sound like so many obstacles to rental investment.
A turnkey renovation expert will help you solve this problem. The work teams are present all over the country and make sure that the work is done in good order for you. You are free to invest wherever you want.
If you are an expat or simply live thousands of miles away, you can renovate a rental property from abroad.
How does turnkey renovation work?
We offer you the opportunity to invest in apartments that need renovation.
As explained above, these allow you to increase your rental profitability and reduce the tax burden on your real estate investment. On arrival, your home is delivered turnkey and can be rented immediately.
Most of the apartments we offer require different types of work: from simple refurbishment to complete property renovation. For each project, we work to optimise the rental performance of your property, whatever it is.
The type of work to be done and its estimated amount are defined at first by the property hunter.
If a rental investor makes an offer on the property, a design manager and a decorator will visit the property to establish a final estimate. The goal is to have a precise amount of work to avoid any unpleasant surprises.
We choose high standards for your home that translate into
An optimised layout with functional and bright living rooms
The respect of the electrical and thermal standards, we transform the thermal “slums” into decent and comfortable housing
The guarantee of a high level of comfort for the tenant (VMC in all rooms, efficient heating…)
Once the sale agreement is signed, we begin the first steps necessary to start the construction.
The main advantage is that once the transaction is completed, there is no need to set foot on a building site to renovate your property!
The construction site starts three weeks after the reception of the work funds. A works manager is in charge of the coordination and the good progress of your building site.
He deals with the craftsmen, checks the estimates, the quality of the services provided by the various trades, and ensures that the deadlines and specifications are met.
A renovation project is a unique project. Its duration can vary from a few weeks to several months. In all cases, we keep you informed of the progress of the work through regular reporting.
The interior design
The properties where you can invest with us are furnished lets.
This means that once the renovation is completed, we equip your home with the furniture essential to its rental (delivery of furniture and assembly, installation of household appliances). The list of furniture is perfectly compliant with the regulation in place.
But that’s not all. The interior designers enhance your property to create a competitive advantage.
Four design ambiences have been created to highlight the charm and authenticity of each living space.
The goal is to guarantee both the comfort of the tenants, but also to bring a stamp and an authenticity to your property. We put all the chances on your side for a fast renting.
If your turnkey rental investment has an outdoor space (balcony, terrace, loggia), it will also be enhanced with several pieces of furniture (small table and chairs).