Improving your investment properties is a great way to get a solid return for the money, but not all improvements are created equal. A common pitfall for rental property owners is shelling out a ton of money on upgrades that don’t increase the value of their property or simply don’t enhance the overall appeal of the rental home to prospective residents.
Distinguishing which upgrades to avoid can help you invest wisely in the right property improvements. Adding hardwood flooring, lavish landscaping, and extensive smart technology features are three things that experts in the field say should never be upgraded.
Elaborate Landscaping
Attractive rental homes often have neat, low-maintenance landscaping. The ideal yard for most renters is one that is easy to take care of. Upgrading your rental property’s landscaping by planting many beautiful plants and trees or creating exquisite flower beds alongside a large, lush lawn area may seem worth the cost. Indeed, the overall perceived value of a rental home is heavily influenced by its curb appeal.
However, going over the top and creating a high-maintenance yard wastes money since it does little to improve the property value or the renter’s comfort. While the attractive landscaping may entice your renter at first, they might discover that it’s too much work and possibly neglect your property or decide to leave. When it comes to landscaping a rental property, simple is better.
Hardwood Flooring
Wood flooring is popular among homeowners because it is warm, natural, and stylish. The downside is that it is easily damaged by water leaks or other mishaps and requires a lot of upkeep. Another important consideration is whether renters would adequately care for a hardwood floor.
Considering all these factors, you need to keep in mind that while wood flooring may be a good upgrade for residents, several renters are content with a low-maintenance look-alike option. It’s crucial to take into account that natural hardwood is one of the more expensive upgrades, which means you may not recover the installation cost, even if you opt to increase the rent.
Overdoing Smart Technology
To get an edge and to attract tenants in today’s rental market, some property managers and landlords are considering integrating advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances.
However, property owners must assess the cost versus benefit of including such modifications. While these technologies offer convenience and productivity, their significant price tag makes it hard to justify the costs.
Take smart home systems as an example. They come with hefty upfront fees and regular maintenance that might reduce potential profits over time. To a similar extent, high-tech security features may make people feel safer, but they have little to no influence on rental rates or tenant satisfaction.
What may be considered advanced today could quickly become obsolete tomorrow, involving expensive upgrades or replacements. Additionally, the complexity of these systems can give rise to technical problems that need specialized expertise and resources to settle, contributing to the property’s overall operational costs. All of these things should be carefully considered before selecting to integrate new technology on your property.
Ensuring both profitability and tenant satisfaction are of utmost importance. Although it could be tempting to invest in flashy cosmetic alterations or complex technology installations, they may not always be the best investment. Instead, think about making cost-effective upgrades that offer real benefits, such as essential maintenance and enhancements that improve the property’s functionality and lifespan. By thoroughly evaluating the cost versus benefit of each renovation and giving importance to those that offer the greatest return on investment, you can ensure long-term success in the rental market.
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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