When it comes to improving your investment properties, some improvements deliver a solid return for the money, while others don’t. One of the primary errors that rental property owners can make is to devote a lot of money to upgrades that don’t increase the overall appeal of the rental home to potential residents or don’t add much value to their property.
Recognizing which upgrades to avoid can help you invest wisely in the right property improvements. With regard to improvements, industry experts usually concur that three things should be avoided: putting in hardwood floors, designing intricate landscaping, and adding a lot of smart technology features.
Elaborate Landscaping
Clean, low-maintenance landscaping is an appealing feature for a rental home. Most renters want a nice yard that is pretty easy to take care of. Upgrading your rental property’s landscaping by planting many beautiful plants and trees or creating exquisite flower beds alongside a large, lush lawn area may seem like a valuable addition. After all, curb appeal is a big part of the perceived value of a rental home.
On the other hand, excessive landscaping and creating a high-maintenance yard waste money because it doesn’t increase the property value or the enjoyment of renters. Furthermore, even though your tenant might be lured to the lovely landscaping at first, they might eventually feel that it’s too much work and opt to move out or neglect your property. When it comes to landscaping a rental property, simplicity is the best.
Hardwood Flooring
Wood flooring is popular among homeowners due to its natural design and warmth. Yet, it requires a lot of upkeep and is susceptible to damage from water leaks or other mishaps. It is also important to take into account whether renters will adequately care for a hardwood floor.
In light of all these considerations, it’s essential to keep in mind that while wood flooring may be an excellent upgrade for residents, most renters are content with a low-maintenance look-alike choice. You need to bear in mind that natural hardwood is one of the more expensive upgrades, which indicates that you may not recover the installation cost, even if you want to increase the rent.
Overdoing Smart Technology
To stay competitive and attract tenants, property managers and landlords in today’s rental market may be tempted to integrate advanced technology such as smart thermostats, keyless entry systems, and energy-efficient appliances.
However, property owners must assess the cost versus benefit of making such improvements. These technologies offer convenience and proficiency, but they usually come with a significant price tag, making the return on investment questionable.
For instance, smart home systems need regular maintenance and setup fees, which over time may reduce potential profits. Likewise, high-tech security features might give comfort, but they won’t have big influence on rental rates or tenant happiness.
Today’s cutting-edge technology can soon become obsolete the next day, demanding expensive upgrades or replacements. In addition, because these systems are complicated, technical problems may arise that require specialized expertise and resources to fix, raising the property’s overall operational costs. If you’re considering integrating new technology on your property, you should take all of these things into account.
It’s imperative to provide equal weight to profitability and tenant satisfaction. Despite their allure, expensive cosmetic procedures and complex technology installations might not always be the best investment. Rather, contemplate implementing cost-effective upgrades that yield concrete benefits, such as essential maintenance and enhancements that improve the property’s functionality and endurance. By thoroughly evaluating the cost versus benefit of each improvement and concentrating on those that deliver the greatest return on investment, you can ensure long-term success in the rental market.
Looking to take full advantage of your investment property returns in Lancaster and its vicinity? Real Property Management Traditions is the only place to look! We’re always here to help you achieve your objectives – give us a call at 661-266-1400 or send us a message online.
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