How to renovate a space with little money

The commercial premises is one of the most interesting investment products available at the moment. Especially in cases where the premises have the potential to be converted into housing, as it can yield high profitability in the future.

In this type of operation, many investors are looking to renovate a bar with little money or transform an old premises into a profitable business with a low initial investment. The key is not just to spend little, but to optimize every euro invested in the renovation of the commercial premises to maximize the final profitability in case of rental or sale.

Of course, in cases where a renovation is involved, it is important to know how to renovate a premises with little money. By investing less in the renovation and in the facelift, this can help us make a better investment. But how to do it?

Common mistakes when renovating a premises with little money

When renovating a cheap commercial premises, many investors make mistakes that end up increasing the project’s cost. Avoiding them is as important as saving:

• Not calculating the real construction budget: starting without a margin usually leads to overruns.
• Always choosing the cheapest option: poorly chosen low-cost options can generate more expenses in the medium term.
• Not thinking about the final use of the premises: it’s not the same to renovate for a bar, office, or rental.
• Not comparing renovation budgets: there can be differences of up to 30% between companies.

Avoiding these mistakes is key for the investment strategy in commercial premises to be truly profitable.

Tips for renovating a premises on a budget

If you want to spend little on the renovation of your premises, it is important to consider these aspects.

Before buying the premises

• Conduct a market study to know the price per square meter in the premises according to the area and make a competitive offer
• Based on your liquidity for the renovation, buy a premises that needs more or less repairs

After buying the premises

• Request several budgets
• Consider renovation or facelift
• Consider not doing everything with the same company (depending on the time you can invest in the renovation, it might be more cost-effective to hire certain things separately)

How to reduce costs?

• Buy materials separately: if you buy the materials on your own, you can save a lot of money, as you avoid the margins that renovation companies might add on top.
• Choose materials with good value for money: when buying materials, you will see that there are low-cost, medium, and expensive options. Ideally, you should always choose something in between, so it lasts and looks good. Of course, depending on the type of establishment and its purpose, it might be interesting to go for the lowest cost. In any case, you will find options for all budgets in the market.
• Compare prices online (and consider buying online): another way to reduce costs in the renovation of your establishment is to buy materials, furniture, and everything you need directly online. Often there are distributors who sell directly through an online store and do not have a physical store, which saves a lot of money and allows them to offer more competitive prices. If you want to save money, it’s an option.
• Do as much as you can: if you are a bit handy or good at painting, you can do some parts of the renovation yourself. You will have to invest your time, which is money, but it may be worth it much more, especially if you have some free time, feel like it, and want to save.

Keep in mind that if you manage to minimize the cost of the renovation, you will be saving money and can invest more in other areas that you consider more priority. Additionally, by investing less, you ensure more profit, a better return, so do not hesitate to consider it.

This strategy is widely used by real estate investors in commercial establishments, who buy assets below market value, carry out an economic but functional renovation, and subsequently sell or rent them for a higher return. In cities with high demand like Barcelona or large urban areas, this technique is one of the most used to generate capital gains in the real estate sector.

Frequently asked questions about renovating a commercial establishment cheaply

Is it profitable to renovate a bar with little money?
Yes, as long as the location is good and the renovation is well planned. The goal is to improve functionality without skyrocketing the investment.

How much does it cost to renovate a commercial establishment?
It depends on the initial condition, but a basic renovation can be significantly cheaper if materials and work items are optimized.

What is better: a complete renovation or a facelift?
It depends on the objective. For quick investment, often an economic facelift is enough to revalue the asset.

If you are thinking about renovating a commercial establishment or a bar with little money to invest, remember that a good purchase is as important as a good renovation. At Gumper Api, we help you find establishments with potential for appreciation so you can maximize your profitability from the start. Contact us without obligation!