Last week, a Chelmsford landlord emailed me, after reading the Chelmsford Property Blog, to ask if he should extend his terraced house, making an extra bedroom in the loft. He had a builder friend who owed him a favour, and thought it a good way to achieve an 'inexpensive' extension.
Having more useable space is generally thought to be consistent with better quality accommodation and homeowners and tenants are prepared to pay for it. If you added a bedroom to a two bed terraced to make a three bed terrace, it could add around 9% to the value of the property. Looking at semi detached properties, and turn a two into a three bed and around 7% could be added to the value.
However, before you rush off to the planning department there are some important considerations, whether you are a homeowner or landlord. What would be the cost of making that extra bedroom? The average value of a terraced house in Chelmsford is currently £240,000 whilst the average value of a semi detached house is £294,900, meaning to make money the cost of the extension would need to be less than £21,600 on the terraced property and £20,640 on the semi detached house.
Talking to a number of tradespeople in the City, most are booking up into the New Year. Also, no matter how good a friend he was, I know of no builders that would charge as little as that! Maybe the builder was just thinking of a bit pointing work on the chimney!
Well, that got me thinking about how bedrooms affect rental prices and rentability. Interestingly, you will see below that whilst bedrooms do have an effect on the rent that can be achieved and the rentability of the property . the difference does not really warrant the expense, hassle and trouble of extending.
50% of the one bed properties on the market to rent in Chelmsford have a tenant paying an average rent of £684 per month.
57% of the two bed properties, have a tenant paying an average rent of £857 per month.
53% of three bed properties costs a tenant an average rent of £1091 per month.
42% of the four bed properties have a tenant with an average rent of £1402 per month.
Now, if you want to increase the value of your property, be you a Chelmsford landlord or homeowner, there are things that cost a lot less than building extra bedrooms. Spruce up the exterior, decorate all the rooms, install fresh carpets and curtains. For homeowners, a matter of a few hundred pounds will add thousands whilst for landlords, these things could add a potential 10% to the rent that you can achieve.
If you would like to discuss this topic in more detail or anything related to residential lettings in the Chelmsford area then please don't hesitate to contact me on: 01245 330500.