Some improvements provide a solid return for the money when it comes to improving your investment properties, while others don’t. Investing a lot of money on upgrades that don’t increase the value of their property or enhance the general appeal of the rental home to prospective residents is one of the biggest blunders that rental property owners can make.
If you want to invest wisely in the right property improvements, you need to know which upgrades to avoid. When it comes to improvements, industry professionals generally concur that you should stay away from three things: significant smart technology features, lavish landscaping, and installing hardwood flooring.
Elaborate Landscaping
A rental home with clean, low-maintenance landscaping will be more desirable. Most renters want a nice yard that is relatively easy to take care of. Upgrading your rental property’s landscaping by including numerous attractive plants and trees or making lovely flower beds next to a big, verdant grass could appear like a worthwhile investment. Finally, curb appeal is a big part of the perceived value of a rental home.
However, going over the top and creating a high-maintenance yard wastes money because it doesn’t add much to the property value or the renter’s satisfaction. Additionally, although your renter might initially be drawn to the beautiful landscaping, they may soon find it too much of a hassle and neglect your property or decide to move out. When it comes to landscaping a rental property, simple is better.
Hardwood Flooring
Due to its beauty and inviting feel, wood flooring is a popular choice among homeowners. However, it’s easy to damage from water leaks or other mishaps, and it requires a lot of upkeep. You must also think about whether renters will adequately care for a hardwood floor.
Considering all these factors, it’s important to mention that although wood flooring could be a great upgrade for residents, the majority of renters are content with a low-maintenance look-alike alternative. Bear in mind that natural hardwood is one of the more expensive upgrades; hence, you might not be able to recover the installation cost, even if you decide to increase the rent.
Overdoing Smart Technology
Smart thermostats, keyless entry systems, and energy-efficient appliances are examples of the kind of advanced technology that property managers and landlords may be tempted to integrate in order to attract tenants and stay competitive in today’s rental market.
However, property owners must assess the cost versus benefit of including such advancements. Even though these technologies offer convenience and effectiveness, they often accompany a significant price tag that may not validate the return on investment.
One example is the initial setup fees and regular maintenance for smart home systems. These factors reduce potential profits in the long run. The installation of high-tech security features may calm tenants’ fears, but they will have little to no influence on rental rates or happiness with the unit.
What is considered cutting-edge now can become old news tomorrow, forcing us to shell out big bucks for expensive upgrades or replacements. Additionally, the property’s overall operational costs can be increased due to technical problems that arise as a result of these systems’ complexity and demand specialized expertise and resources to fix. When opting to integrate new technology on your property, you must take all of these things into account.
Maximizing profitability and tenant satisfaction are two of the most important goals. Investing in complex technology installations or flashy cosmetic makeovers isn’t always the best investment. On the other hand, contemplate making cost-effective upgrades that give actual benefits, such as essential maintenance and renovations that improve the property’s functionality and endurance. By carefully evaluating the cost against the profit of each update and highlighting those that yield the highest return on investment, you can ensure long-term success in the rental market.
Want to know how to get the most out of your investment properties in Cranston and the neighborhood area? Come to Real Property Management Providence instead! We’re always here to assist you in reaching what you want to achieve – give us a call at 401-272-3300 or send us a message online.
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