Comparable Properties
One of the most important aspects to think about when purchasing a style of siding for your rental home is what the other homes in the neighborhood seem to be. Perhaps the biggest reason vinyl siding is such a favored option for home exteriors is that it is reasonably cheap. As with other forms of materials, vinyl siding is one of the least costly. It is also very easy to install, which can vastly reduce those costs. In terms of budget-friendly options, vinyl is the clear frontrunner for rental home exteriors.
On the flip side, if the other homes in your local rental market all have stucco, brick, or other exterior materials, using siding could hurt you financially. This is because if your rental property seems cheaper than the houses nearby, renters might be scared that the Hanover property manager is cutting corners and may not do a great job of keeping up with property maintenance and repairs. Additionally, adding siding when comparable properties do not could cause your property’s value to drop. As a result, before finalizing any vinyl siding purchases, review similar properties in your rental market first.
Cost Benefits
If vinyl siding is widely used in your rental market, there are some clear benefits to utilizing the same on your property. In addition to being less expensive, vinyl siding is versatile and has long-lasting durability. Vinyl siding offers numerous different styles and colors, all of which are waterproof and fade-resistant. That means that once the siding is installed, it should endure for many years before it starts to show much wear. Vinyl siding is simple to clean with a pressure washer and does not retain or absorb moisture. So for rental properties in humid climates, vinyl siding might be the low-cost solution you need to keep your rental home’s curb appeal going strong.
Drawbacks to Siding
Sadly, there are some drawbacks to vinyl siding. One of the key factors you might opt not to install vinyl siding on a rental house, even if other houses in your market have vinyl siding, is because while it is durable, it can be easily dented and scratched. If you plant trees or shrubs around your rental property’s exterior walls, those branches could trigger permanent damage to the vinyl siding. Tenants are not usually the most effective at keeping plants well-trimmed, so the risk of overgrown trees must be considered before installing vinyl siding.
Another key consideration is whether and how vinyl siding fits into your tax planning. According to the IRS, vinyl siding is an improvement, not a repair. This indicates that you will need to depreciate the cost of the siding over several years rather than be able to deduct the entire expense in the year of purchase. Though vinyl siding is a cost-effective option, it is not exactly cheap and will require a large investment of cash to achieve. Knowing how much of the cost you can carry as a multi-year tax deduction can enable you to determine whether vinyl siding is suitable for your rental properties.
Lastly, it is up to you to select whether vinyl siding is a good choice for your rental homes. Once you do, however, then the real process of selecting a competent vendor starts. All of this analysis and research can waste a significant amount of time you could spend on more profitable investing activities instead.
So, consider the advantages of choosing Real Property Management Beacon. We can advise which exterior siding options work best for your rental properties. We recommend dependable vendors with proven track records and professionals who will do the job effectively and at a fair price. Contact us online or call today to learn more about what we have to offer!