When aiming to enhance your investment properties, certain property improvements can yield a strong return on investment, while others fall short. One of the frequent mistakes rental property owners can make is channeling substantial funds into upgrades that do not add much value or fail to boost the appeal of the rental home for prospective tenants.
Recognizing which upgrades to steer clear of can foster smarter investment decisions for your rental property. Industry specialists consistently highlight three upgrades to avoid: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Orderly, low-maintenance landscaping is a coveted feature for a rental home. Most renters prefer a pristine, easy-to-maintain yard. Upgrading your rental property’s landscaping with a profusion of plants and trees or crafting ornate garden beds alongside a large, lush lawn may seem like a valuable addition. After all, curb appeal plays a major role in the perceived value of a rental home.
However, a high-maintenance yard drains resources as it doesn’t add much to the property value or enhance renter’s satisfaction. While tenants may initially be enchanted by beautiful landscaping, they might soon find it too cumbersome and neglect your property or opt to move out. When landscaping a rental property, simple is better.
No need for expensive hardwood flooring
Wood flooring is revered by homeowners for its natural style and warmth. Yet, it requires a lot of upkeep and is prone to damage from water leaks or other mishaps. Property owners must also evaluate whether tenants will adequately care for a hardwood floor.
Considering these factors, it’s worth noting that while wood flooring may be a desirable upgrade for some, most renters are content with a low-maintenance look-alike option. Natural Hardwood is one of the more expensive upgrades, so you may not recover the installation cost, even if you increase the rent to offset expenses.
Keep smart tech installations to a minimum
In the current rental market, property managers and landlords may feel compelled to incorporate advanced technology such as smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
Nevertheless, property owners must carefully assess the cost versus benefit of these upgrades. Although these technologies offer convenience and efficiency, their significant price tag often undermines the return on investment. Smart home systems involve initial setup and ongoing maintenance costs that can erode profitability and tenant satisfaction. Advanced security features may provide comfort but typically don’t significantly affect rental rates or tenant satisfaction. Technologies considered cutting-edge today can quickly become outdated, necessitating costly upgrades. Additionally, technical issues that need specialized expertise may arise, further increasing operational costs when you integrate new technology into your property.
Evaluate cost vs benefit before renovations
Focusing on profitability and tenant satisfaction is crucial. While fancy cosmetic changes and complex technology installations may seem enticing, they’re not always the best investment. Instead, prioritize cost-effective upgrades that deliver tangible benefits, such as essential maintenance and improvements that improve the property’s functionality and longevity.
Are you looking to enhance your investment property earnings in Danvers and surrounding areas? Look no further than Real Property Management Reliance! We are constantly available to help you achieve your targets – give us a call at 978-998-8114 or send us a message online.
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.
