When improving your investment properties, some property improvements can generate a strong return on investment, while others disappoint. One of the common mistakes rental property owners can make is pouring significant resources into upgrades that do not add much value or fail to increase the appeal of the rental home to potential renters.
Identifying which upgrades to steer clear of can pave the way for smarter investment decisions in your rental property. Industry specialists often highlight three upgrades to avoid: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Tidy, low-maintenance landscaping is a prized feature for a rental home. Most renters seek a straightforward, easy-to-maintain yard. Upgrading your rental property’s landscaping with numerous plants and trees or designing elaborate flower gardens alongside a large, lush lawn might seem like a valuable addition. After all, curb appeal heavily impacts the perceived value of a rental home.
Yet, a high-maintenance yard wastes funds as it doesn’t add much to the property value or improve renter’s satisfaction. While tenants may initially be drawn to beautiful landscaping, they might soon find it too demanding and neglect your property or decide to move out. When landscaping a rental property, simple is better.
No need for expensive hardwood flooring
Wood flooring is admired by homeowners for its natural style and warmth. However, it requires considerable maintenance and is vulnerable to damage from water leaks or other accidents. Property owners must also consider whether tenants will adequately care for a hardwood floor.
Given these concerns, it’s important to recognize that while wood flooring may be a desirable upgrade for some, most renters are content with a low-maintenance look-alike option. Natural Hardwood is one of the more expensive upgrades, meaning you may not recover the installation cost, even if you raise the rent to offset costs.
Keep smart tech installations to a minimum
In the modern rental market, property managers and landlords may be tempted to incorporate advanced technology such as smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
However, property owners should carefully assess the cost versus benefit of these upgrades. Although these technologies offer convenience and efficiency, their significant price tag often outweighs the return on investment. Smart home systems involve initial setup and ongoing maintenance costs that can reduce profitability and tenant satisfaction. Advanced security features may provide peace of mind but rarely significantly affect rental rates or tenant satisfaction. Technologies viewed as cutting-edge today may soon become outdated, necessitating costly upgrades. Additionally, technical issues that need specialized expertise can emerge further increasing operational costs when you integrate new technology into your property.
Evaluate cost vs benefit before renovations
Emphasizing profitability and tenant satisfaction is key. While fancy cosmetic changes and complex technology installations may seem alluring, they’re not always the best investment. Instead, opt for cost-effective upgrades that offer substantial benefits, such as essential maintenance and improvements that improve the property’s functionality and longevity.
Struggling to get the most out of your investment properties in Enfield and the surrounding area? Look no further than Real Property Management Beacon! We’re dedicated to helping you achieve your goals – give us a call at 603-448-8808 or send us a message online.
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