When it comes to improving your investment properties, some changes give you a solid return for the money—while others do not. One of the biggest blunders that rental property owners make is devoting a lot of money to upgrades that don’t add much value to their property or simply don’t boost the overall appeal of the rental home to potential residents.
Determining which upgrades to avoid can help you invest wisely in the right property improvements. Three types of improvements that experts say you should avoid are landscaping that is too fancy, putting in hardwood flooring, and adding a lot of smart technology features.
Elaborate Landscaping
A rental home with clean, low-maintenance landscaping is more likely to be rented. An attractive yard and easy to take care of is what most renters want. Upgrading your rental property’s landscaping by adding lots of beautiful plants and trees or making gorgeous flower beds with a huge, lush lawn space may seem like a good idea. After all, curb appeal is an important part of the perceived value of a rental home.
Yet, going overboard and developing a high-maintenance yard wastes money because it doesn’t add much to the property value or the renter’s pleasure. Moreover, while your renter may be initially pulled by the lovely landscape, they may eventually find it too much of a bother and neglect your property or decide to leave. With regard to landscaping a rental property, keeping things simple is the best.
Hardwood Flooring
Wood flooring is popular among homeowners because it looks natural and feels warm. However, it requires a lot of upkeep and is at risk of damage from water leaks or unanticipated occurrences. Also, it is imperative to know whether renters will adequately care for a hardwood floor.
Given all of these considerations, it’s worth remembering that while wood flooring may be an excellent upgrade for residents, most renters are content with a low-maintenance look-alike alternative. You should know that natural hardwood is one of the more expensive upgrades, so you may not be able to recover the installation cost, even if you choose to increase the rent.
Overdoing Smart Technology
In today’s rental market, property managers and landlords may want to integrate advanced technology such as smart thermostats, keyless entry systems, and energy-efficient equipment to stay relevant and attract tenants.
Yet, property owners must assess the cost versus benefit of incorporating such upgrades. Although these technologies offer convenience and productivity, they are commonly associated with a significant price tag that might be higher than the return on investment.
For illustration, smart home systems involve initial setup expenses and regular maintenance, which can reduce potential profits in the long run. Similarly, advanced security features can offer calmness but not significantly influence rental rates or tenant contentment.
What is high-tech right now might become antiquated tomorrow, necessitating expensive upgrades or replacements. Besides that, the intricacy of these systems might cause technical problems that call for specialized expertise and resources to fix, raising the property’s overall operational costs. You should carefully evaluate all these variables before deciding to integrate new technology into your property.
You need to put emphasis on both profitability and tenant satisfaction. While lavish visual changes and complex technology installations may seem like a good idea, they may not always be the best investment. As an alternative, think about creating cost-effective upgrades that are both useful and won’t break the bank, such as essential maintenance and improvements that improve the property’s functionality and lifespan. By diligently evaluating the cost versus benefit of every improvement and selecting those that generate the highest return on investment, you can ensure long-term success in the rental market.
Want to make more money from your rental properties in King George County and nearby areas? Real Property Management Regions is the only place you need to go! We’re always here to assist you in attaining your goals – give us a call at 804-491-3348 or send us a message online.
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