When it comes to improving your investment properties, some modifications give a solid return for the money—and some don’t. One of the most common mistakes that rental property owners can make involves allocating a lot of money on upgrades that don’t add much value to their property or just do not increase the general appeal of the rental home to residents who are considering moving in.
Recognizing which upgrades to avoid can help you invest wisely in the right property improvements. When it comes to improvements, the majority of industry professionals are in agreement that there are three things that should be avoided: lavish landscaping, installing hardwood flooring, and extensive smart technology features.
Elaborate Landscaping
An appealing feature of a rental home is clean, low-maintenance landscaping. Most renters desire a yard that is not only attractive but also pretty easy to take care of. Upgrading your rental property’s landscaping by planting numerous stunning plants and trees or creating exquisite flower beds alongside a large, lush lawn space may seem like a valuable investment. At the end of the day, the perceived value of a rental home is heavily influenced by the home’s curb appeal.
However, going over the top and creating a high-maintenance yard wastes money because it has little effect on the property value or the renter’s fulfillment. Moreover, although your renter might initially be attracted to the stunning landscaping, they may ultimately discover it to be too much of a burden and either neglect your property or opt to move out. If you are landscaping a rental property, it is best to keep things as basic as possible.
Hardwood Flooring
Wood flooring is popular among homeowners due to its natural appearance and the warmth it provides. On the flip side, it requires a lot of upkeep and is subject to damage from water leaks or other disasters. What is more, it’s critical to bear in mind whether renters will adequately care for a hardwood floor.
Considering all these factors, it’s vital to recognize that while wood flooring may be an appealing upgrade for residents, most renters are content with a low-maintenance option that looks like wood. Don’t forget that natural hardwood is one of the more expensive upgrades, which means you may not recover the installation cost, even if you opt to increase the rent.
Overdoing Smart Technology
Property managers and landlords in today’s rental market may have the desire to integrate advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and maintain their competitive edge in the market.
However, property owners must assess the cost versus benefit of including these upgrades. Despite the fact that these technologies offer convenience and effectiveness, they frequently come with a significant price tag that may not be sufficient to back up the return on investment.
For instance, smart home systems necessitate additional expenses for initial setup and regular maintenance, which can reduce potential profits as time goes on. Similarly, cutting-edge security features might give tenants a sense of security, but they do not greatly influence rental rates or tenant satisfaction.
What may be regarded modern today could rapidly become outdated tomorrow, demanding expensive upgrades or replacements. Furthermore, the complication of these systems can give rise to technical problems which call for specialized expertise and resources to address, contributing to the property’s overall operational costs. When deciding to integrate new technology into your property, it is imperative that you take all of these aspects into consideration.
Maintaining a focus on both profitability and tenant satisfaction is absolutely necessary. In spite of the fact that lavish visual alterations and complex technology installations could appear to be irresistible, they may not always be the best investment. Instead, think about making cost-effective upgrades that bring actual benefits, such as essential maintenance and enhancements that improve the property’s functionality and sustainability. You can ensure long-term success in the rental market by thoroughly evaluating the cost of each update in comparison to the benefits it offers and giving priority to those upgrades that offer the highest return on investment.
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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