As you’re focused on improving your investment properties, it’s vital to consider whether each enhancement brings a positive return on investment. One of the top mistakes rental property owners can make is overspending on upgrades that do not add much value or fail to enhance the appeal of the rental home for future residents.
By identifying the upgrades to avoid, you can make smarter investment decisions regarding property improvements. Professionals in the field recommend avoiding three costly upgrades: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Tidy, low-maintenance landscaping is a practical feature for a rental home. Most tenants favor simple yards that don’t require too much attention. Upgrading your rental property’s landscaping with decorative plants and trees, floral borders, and a large, lush lawn might seem like a valuable addition. Curb appeal contributes to the perceived value of a rental home.
That said, a high-maintenance yard doesn’t add much to the property value or enhance renter’s satisfaction. A tenant may be drawn to beautiful landscaping at first but may later find it too much to manage and either neglect your property or decide to move out. When landscaping a rental property, remember, simple is better.
No need for expensive hardwood flooring
Wood flooring is a staple among homeowners because of its natural style and warmth. But it requires a lot of upkeep and is prone to damage from water leaks and spills. Also, not all renters will adequately care for a hardwood floor.
Even though wood flooring may be a desirable upgrade, most renters are content with a low-maintenance look-alike option. Since natural hardwood is one of the more expensive upgrades, it’s unlikely you’ll recover the installation cost—even if you raise the rent.
Keep smart tech installations to a minimum
Today’s property managers and landlords often consider adding advanced technology—like smart thermostats, keyless entry systems, and energy-efficient appliances—to attract tenants and remain competitive.
Still, property owners need to assess the cost versus benefit of such upgrades. While these technologies offer convenience and efficiency, they come with a significant price tag and may not yield a worthwhile return on investment.
Home systems have setup costs and ongoing maintenance expenses that impact your bottom line. Advanced security features may seem useful, but they rarely affect rental rates or tenant satisfaction significantly. Since technologies can quickly become outdated, costly upgrades may follow. Technical issues might also require specialized assistance, which increases operational costs. Take caution before you integrate new technology into your property.
Evaluate cost vs benefit before renovations
Your renovation strategy should center on profitability and tenant satisfaction. Though fancy cosmetic updates and high-end tech might seem appealing, they’re not always the best investment. Instead, look toward cost-effective upgrades and essential maintenance—improvements that improve the property’s functionality and longevity.
Looking to maximize your investment property returns in Hurricane and nearby? Look no further than Real Property Management Southern Utah! We’re always here to help you reach your goals – give us a call at 435-673-4242 or send us a message online.
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