In regard to improving your investment properties, certain changes present a solid return for the money—and some don’t. One of the worst actions that rental property owners can take is to invest a lot of money on upgrades that don’t add much value to their property or simply don’t enhance the complete appeal of the rental home to possible residents.
Determining which upgrades to avoid can help you invest wisely in the right property improvements. Most professionals in the field believe that when it comes to upgrades, you should avoid three things: extravagant landscaping, installing hardwood flooring, and extensive smart technology features.
Elaborate Landscaping
An attractive feature of a rental home is clean and low-maintenance landscaping. A nice, easy-to-take care-of yard is what most renters request. Upgrading your rental property’s landscaping by placing several good-looking plants and trees or forming lovely flower beds next to a large, lush lawn area may appear to be a good idea. Lastly, curb appeal is an important element of the perceived value of a rental home.
However, going excessively and making a high-maintenance yard wastes money since it doesn’t contribute much to the property value or the renter’s pleasure. In addition, although your renter might be enticed by the lovely landscaping at first, they may eventually realize it is too much of a hassle and neglect your property or choose to move out. It’s better to keep things simple when it comes to landscaping a rental property.
Hardwood Flooring
Wood flooring is popular among homeowners owing to its genuine look and cozy feel. Nevertheless, it requires a lot of upkeep and is exposed to damage from water leaks or other disasters. Moreover, it’s vital to consider whether renters will adequately care for a hardwood floor.
With all of these things in mind, it’s essential to point out that while wood flooring may be an excellent upgrade for residents, the majority of renters are content with a low-maintenance look-alike option. It’s vital to bear in mind that natural hardwood is one of the more expensive upgrades, which means you may not recover the installation cost, even if you elect to increase the rent.
Overdoing Smart Technology
To stay competitive in today’s rental market and attract tenants, property managers and landlords may want to integrate advanced technology like smart thermostats, keyless entry systems, and energy-saving appliances.
However, property owners must assess the cost versus benefit of incorporating such upgrades. Although these technologies offer convenience and efficiency, they often come with a significant price tag that may not justify the return on investment.
As an illustration, smart home systems necessitate initial setup costs and regular maintenance, which can reduce potential profits in the future. Additionally, state-of-the-art security features may grant peace of mind but not significantly influence rental rates or tenant satisfaction.
What is high-tech today could very soon become old tomorrow, demanding expensive upgrades or replacements. Additionally, the difficulty of these systems can lead to technical problems that necessitate specialized expertise and resources to resolve, elevating the property’s overall operational costs. All of these things should be considered before you decide to integrate new technology into your property.
It’s advisable to concentrate on both profitability and tenant satisfaction. While expensive improving changes and complex technology installations may seem attractive, they may not always be the best investment. Rather, think about making cost-effective upgrades that offer substantial advantages, such as essential maintenance and developments that improve the property’s functionality and endurance. By carefully evaluating the cost versus advantage of each renovation and emphasizing those that provide the utmost return on investment, you can ensure long-term success in the rental market.
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.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
