On the subject of improving your investment properties, specific renovations generate a solid return for the money—and some don’t. One of the top errors that rental property owners can make is shelling out a lot of money on upgrades that do not add much value to their property or fail to increase the overall appeal of the rental home to possible residents.
Identifying which upgrades to avoid can help you invest wisely in the right property improvements. Extensive smart technological features, installing hardwood flooring, and elaborate landscaping are three things that professionals in the industry say should not be invested in.
Elaborate Landscaping
A notable advantage of rental homes is clean, low-maintenance landscaping. Most renters are seeking a visually appealing yard that is pretty easy to take care of. It could seem like an excellent idea to upgrade your rental property’s landscaping by adding lots of beautiful plants and trees or making fabulous flower beds next to a big, green lawn. Ultimately, curb appeal plays an important role in the perceived value of a rental home.
However, going beyond the necessary and creating a high-maintenance yard wastes money as it adds little to the property value or the renter’s satisfaction. The appealing landscape may lure your renter at first, but they may develop a distaste for it and either neglect your property or opt to leave. Landscaping a rental property should be kept simple and straightforward.
Hardwood Flooring
Wood flooring is popular among homeowners due to its natural look and inviting ambiance. However, it requires a lot of upkeep and is liable to damage from water leaks or unanticipated occurrences. Additionally, you need to determine whether renters will adequately care for a hardwood floor.
Considering all these factors, even though it is a great upgrade for residents, most renters are content with a low-maintenance alternative for wood flooring. It is important to acknowledge that natural hardwood is one of the more expensive upgrades, which implies you may not recover the installation cost, even if you choose to increase the rent.
Overdoing Smart Technology
Property managers and landlords in today’s rental market may consider integrating advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and maintain a competitive edge.
Yet, property owners must assess the cost versus benefit of incorporating such advancements. These technologies offer convenience and performance, but their significant price tag makes it hard to rationalize making the investment.
For instance, smart home systems require initial investment and regular maintenance, which can reduce potential profits over time. Along with it, cutting-edge security features may provide peace of mind, but they won’t influence rental rates or the satisfaction of tenants.
What may be deemed cutting-edge now could easily become outdated tomorrow, needing expensive upgrades or replacements. Moreover, due to the intricate nature of these systems, technical problems may occur, requiring the help of specialized expertise and resources to resolve, adding to the property’s overall operational costs. When considering integrating new technology into your property, it is essential to carefully consider all of these factors.
It is important to give priority to both profitability and tenant satisfaction. Lavish makeovers and complex technology installations could lure you, but they may not always be the best investment. Rather, think about making cost-effective upgrades that produce real benefits, such as essential maintenance and modifications that improve the property’s functionality and lifespan. To ensure long-term success in the rental market, you should evaluate the cost versus profit of each improvement and prioritize the ones that yield the greatest return on investment first.
Are you an investor in Westley Chapel or the surrounding area who wants to maximize the potential of your property? Consider communicating with Real Property Management Freedom! Feel free to contact us at 813-867-2667 or send us a message online at any time, and we’ll gladly help you accomplish your goals.
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