As an Investment Property Owner undertaking renovations, your goal should be to keep costs at a minimum.

Architects, designers and builders are an obvious expense however there are many other less obvious expenses that can blow out, even after the most meticulously planned budgeting.

Generally, it is not possible to stay in a property that is undergoing renovations, especially if your project includes work with plumbing, electricity or the kitchen.

It is quite likely that if the property is occupied, there may be relocation costs for the occupants or the property will not be generating a rental income for you, whilst you are undertaking the renovation work.

Depending on where the property is located, you may have to obtain council permits and certifications.

Costs of permits and certifications may vary from council to council but make sure you do your research, otherwise you may end up paying very hefty fines or even risk having your project stopped by the council.

You may also require council approval for site works, if your property requires some work before any renovation can start. Site work can include use of heavy machinery like cranes, tractors, excavators, building retaining walls, clearing out trees or flattening land.

Needless to say, if you do need site work ahead of your renovation, obtain quotes well before you start any actual renovation.

Also, depending on the type of renovation, there may also be tax implications, so check with your Accountant before you begin any work.

Consider hiring tools instead of purchasing them and if you are making structural changes, find out how much a structural engineer will cost you.

Once you have decided on an engineer, they can help you budget for all your structural costs.

There is always an element of uncertainty associated with renovation projects so it is good idea to factor unforeseen costs into your budget, say 10%, just in case.

If you are going to splurge, do it with items like splash back tiles, bathroom vanities or kitchen benchtops, as this will immediately increase the visual appeal and appreciate the value of the property, thereby increasing how much rental income you can command.

Renovations are massive projects and they are not cheap. Most people fail to take into account the several hidden costs associated with renovations and you should always be aware of these and budget for them before your project kicks off.

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