Unforeseen expenses can significantly impact your bottom line in the world of Kansas City real estate. Discover essential insights on potential hidden renovation costs in our recent article.
When purchasing an investment property in Kansas City, it’s common to consider various renovations. It’s crucial to distinguish between renovations that could negatively impact your profits and those that can offer a significant return on investment. Below, we highlight some hidden renovation costs to be mindful of when enhancing your property in Kansas City.
Getting Your Property Up To Code
Ensure that any older properties, especially houses, have undergone renovations that meet current standards. Upgrading a house to code may disrupt your project after inspections. At times, you might need to remove and redo previous work to comply with current building codes. Prior to starting any renovations, confirm that permits were obtained for past projects and that all work passed inspection.
Estimate for Permit Costs
When it comes to property upgrades, securing building permits is a crucial step. No matter the scale of the project, it’s imperative to submit the necessary paperwork to the local permitting authority. Permits are mandatory for various tasks such as home additions, extensive renovations, electrical and plumbing alterations, as well as new constructions. The cost of permits typically ranges from a few hundred to a few thousand dollars, depending on the project scope. Acquiring the right permits stands as a fundamental aspect of any construction endeavor. Neglecting this requirement can lead to severe consequences in the long run.
Pest Problems
When embarking on a house renovation project, unexpected guests like termites, mice, raccoons, or gophers may surface, leading to additional costs and construction delays. Promptly addressing pest issues is crucial to prevent disruptions and ensure a smooth renovation process. Contact Faithful Home Buyers KC LLC, at (816) 724-6679 at the first sign of infestation to handle these unwanted tenants efficiently.
Child and Pet Care
If you are residing in your home during a renovation project with your pets or small children in Kansas City, you may need to arrange for additional care while the work is ongoing. Some choose to board their pets to ensure their safety and minimize disruptions, while others find it safer to have young children stay with a caregiver away from the construction site. This precaution becomes particularly important if you are personally involved in the renovations, as it can pose risks to have toddlers moving around in the work area. Prioritizing everyone’s safety and well-being is crucial during periods of intense construction activity.
Water Damage & Mold
Renovations can unearth water damage and mold in homes. Addressing these issues can be costly. Identifying the water source and assessing the damage are crucial. Professional mold removal is necessary, along with repairs to anything affected by the water leak.
Avoiding Underbidding and Unexpected Costs
Unforeseen expenses are par for the course in real estate investment. Low bids and unexpected developments are common occurrences during renovations. A wise strategy is to set aside 10-15% of your total budget for unexpected renovation costs. This precaution guards against running out of funds before project completion. By factoring in this buffer in advance, you can prevent budget overruns and incomplete projects.