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Are you ready to make some upgrades to a home? If so, you need to know whether the work will be considered a home renovation or home remodeling. Many homeowners think the terms are interchangeable, but there are some significant differences between them.

If you work in construction, are preparing for a contractor exam, or are investing in your own residence, knowing the difference between these concepts directly affects the scope of your project. The last thing you want to do is engage in work without the proper license or permits. Here's a closer look at what each process involves.

What Is Home Renovation?

A home renovation is typically smaller in scale. You can renovate an entire aspect of your home, or focus on a specific room. However, you aren't changing the structure or purpose of any systems or rooms. Here are a few examples of common renovations:

• Adding exterior shutters
• Painting a room
• Replacing cabinet handles and drawer pulls
• Installing a new thermostat
• Installing a new vanity and sink

The scope of these projects is relatively small. Many homeowners elect to tackle renovations on their own. These make great do-it-yourself projects, especially if you are handy or don't mind taking on a new challenge.

However, home renovations do not include major overhauls to your home. If you are completely gutting your kitchen, tearing down walls, or repurposing a room, your project can cross the line from renovation to remodeling. That's where things get gray.

What Is Home Remodeling?

Home remodeling involves making major changes to your home. It could include ripping out an entire room's worth of hardware and fixtures, converting one space into a different type of room (i.e., turning a garage into a bedroom and bathroom), or some other form of large project.

Here are some of the most common home remodeling projects:

• A large-scale kitchen remodel
• An addition or bathroom remodel
• Enlarging a closet
• Removing walls
• Adding on to a bedroom
• Finishing a basement or attic

Before you purchase materials or start tearing out cabinets, find out whether the scope of work you are performing requires a permit. Some remodeling efforts do, while others do not.

When You Need a Licensed Contractor

A project can be relatively small and require a permit or large in scale and not require a permit. That's where homeowners sometimes get confused.

For example, most homeowners would consider replacing the flooring in their entire home to be a large-scale project. However, replacing floors does not usually require you to get a permit.

Typically, a permit is required when you are making structural changes to a home, such as installing new electrical wiring or plumbing. Repairing certain types of damage also requires a permit.

Getting Licensed

If you are a contractor or trades professional, make sure you have the appropriate license for your scope of work. RocketCert offers licensing courses for trades in all 50 states. Sign up today and start your path to getting licensed.