In regard to improving your investment properties, certain improvements present a solid return for the money—and some don’t. One of the greatest mistakes that rental property owners can make is to spend a lot of money on upgrades that don’t add much value to their property or simply don’t boost the overall appeal of the rental home to future residents.
Figuring out which upgrades to avoid can help you invest wisely in the right property improvements. The majority of professionals in the field believe that with regard to enhancements, you need to avoid three things: excessive landscaping, installing hardwood flooring, and extensive smart technology features.
Elaborate Landscaping
An appealing characteristic of a rental home is clean and low-maintenance landscaping. A stunning, easy-to-take care-of yard is what most renters desire. Upgrading your rental property’s landscaping by planting numerous charming plants and trees or creating lovely flower beds next to a large, lush lawn area may seem to be a good idea. After all, curb appeal is an important part of the perceived value of a rental home.
However, going excessively and creating a high-maintenance yard wastes money since it doesn’t add much to the property value or the renter’s desire. Also, although your renter might be induced by the beautiful landscaping at first, they may sooner or later realize it is too much of a hassle and neglect your property or opt to vacate. It’s advisable to keep things simple when landscaping a rental property.
Hardwood Flooring
Wood flooring is popular among homeowners due to its genuine appearance and cozy feel. However, it requires a lot of upkeep and is prone to damage from water leaks or unexpected events. Additionally, it’s imperative to consider whether renters will adequately care for a hardwood floor.
Considering all these factors, it’s essential to mention that while wood flooring may be an ideal upgrade for residents, the majority of renters are content with a low-maintenance look-alike option. It’s best to keep in mind that natural hardwood is one of the more expensive upgrades, which indicates you may not recover the installation cost, even if you choose to increase the rent.
Overdoing Smart Technology
To remain competitive in today’s rental market and attract tenants, property managers and landlords may be tempted to integrate advanced technology like smart thermostats, keyless entry systems, and energy-saving appliances.
Nevertheless, property owners must assess the cost versus benefit of including such upgrades. Although these technologies offer convenience and proficiency, they often contain a significant price tag that may not justify the return on investment.
For instance, smart home systems require initial setup expenses and regular maintenance, which can reduce potential profits over time. Additionally, innovative security features may grant peace of mind but not greatly influence rental rates or tenant satisfaction.
What is technological today could quickly become obsolete tomorrow, which leads to expensive upgrades or replacements. What is more, the difficulty of these structures can cause technical problems that calls for specialized expertise and resources to resolve, raising the property’s overall operational costs. All these factors should be taken into account before you decide to integrate new technology into your property.
It’s a good idea to prioritize both profitability and tenant satisfaction. While fancy cosmetic improvements and complex technology installations may seem alluring, they may not always be the best investment. Rather, think about making cost-effective upgrades that supply actual benefits, such as essential maintenance and developments that improve the property’s functionality and life expectancy. By carefully evaluating the cost versus revenue of each upgrade and prioritizing those that deliver the best return on investment, you can ensure long-term success in the rental market.
Looking to take advantage of your investment property returns in Ooltewah and the nearby areas? There is only one place you need to go: Real Property Management Your Home! Feel free to contact us at 423-704-9944 or send us a message online at any time to get help meeting your goals.
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