When it comes to improving your investment properties, certain upgrades can yield a decent return on investment, while others fall short. One of the most common mistakes rental property owners can make is investing heavily in upgrades that do not add much value or fail to elevate the appeal of the rental home to prospective tenants.
Recognizing the upgrades to avoid is key to making smarter investment decisions regarding property improvements. Professionals widely agree that three upgrades to steer clear of include: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Neat, low-maintenance landscaping is an attractive feature for a rental home. Most tenants prefer a simple yard that’s easy to maintain. Upgrading your rental property’s landscaping with an abundance of decorative plants and trees or constructing ornate garden beds with a large, lush lawn might appear to be a valuable addition. Curb appeal certainly contributes to the perceived value of a rental home.
However, opting for a high-maintenance yard often results in wasted funds since it doesn’t add much to the property value or renter’s satisfaction. While a tenant may initially admire the beautiful landscaping, they may later see it as burdensome, neglect your property, or move out altogether. With landscaping a rental property, simple is better.
No need for expensive hardwood flooring
Wood flooring is a top choice for many homeowners due to its natural style and warmth. Nonetheless, it requires a lot of upkeep and is prone to damage from water leaks or spills. It’s also important to question whether renters will adequately care for a hardwood floor.
While wood flooring may be a desirable upgrade, most renters are content with a low-maintenance look-alike option. Given that natural hardwood is one of the more expensive upgrades, it’s unlikely you’ll recover the installation cost—even if you increase the rent.
Keep smart tech installations to a minimum
Nowadays, property managers and landlords may be eager to incorporate advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
Still, property owners should carefully assess the cost versus benefit. Though such technologies offer convenience and efficiency, they often carry a significant price tag that doesn’t always translate into a good return on investment.
Smart home systems come with initial setup and ongoing maintenance costs that can cut into your profits. While advanced security features might appeal to some, they don’t significantly affect rental rates or tenant satisfaction. What’s cutting-edge today can quickly become outdated, demanding costly upgrades. Technical issues may also require specialized expertise, increasing operational costs. Think twice before you integrate new technology into your property.
Evaluate cost vs benefit before renovations
Prioritizing profitability and tenant satisfaction is essential. Although fancy cosmetic changes and complex technology installations may seem enticing, they’re not always the best investment. Instead, consider cost-effective upgrades that truly benefit the property, such as essential maintenance and improvements that enhance functionality and longevity.
Looking to capitalize on your investment property returns in Eagle Rock and the surrounding areas? Look no further than Real Property Management Vision! Feel free to contact us at 818-233-8789 or send us a message online at any time to get help reaching your targets.
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