As you work on improving your investment properties, knowing which changes offer a strong return on investment is critical. A frequent error and one of the top mistakes rental property owners can make is investing in upgrades that do not add much value or fail to improve the appeal of the rental home for future tenants.
Learning which upgrades to avoid helps you make more smarter investment decisions when considering property improvements. Professionals agree there are three major upgrades to steer clear of: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Tenants prefer low-maintenance landscaping, making it a strong feature for a rental home. Upgrading your rental property’s landscaping with exotic plants and trees, specialty beds, or a large, lush lawn can seem like a valuable addition, and there’s no denying that curb appeal contributes to the value of a rental home.
But adding a high-maintenance yard often doesn’t add much to the property value and may reduce renter’s satisfaction. Tenants drawn in by beautiful landscaping may soon find the upkeep overwhelming and either neglect your property or move out. In most cases, when landscaping a rental property, simple is better.
No need for expensive hardwood flooring
Though wood flooring is a favorite among homeowners for its natural style and warmth, it requires a lot of upkeep and is prone to damage, particularly from water leaks. And there’s no guarantee tenants will adequately care for a hardwood floor.
Despite the fact that wood flooring may be a desirable upgrade, most renters are perfectly fine with low-maintenance look-alike options. Given that natural hardwood is one of the more expensive upgrades, it’s unlikely you’ll recover the installation cost, even if you bump up the rent.
Keep smart tech installations to a minimum
With competition in the rental market, property managers and landlords are turning to advanced technology—like smart thermostats, keyless entry systems, and energy-efficient appliances—to attract tenants and remain competitive.
But property owners must assess the cost versus benefit. Although these technologies offer convenience and efficiency, their significant price tag may not yield the expected return on investment.
Because home systems involve initial setup and ongoing maintenance costs, the long-term expense can be significant. Advanced security features sound promising but rarely significantly affect rental rates or improve tenant satisfaction. As new technologies emerge, older ones become outdated, requiring costly upgrades. Plus, technical issues that need specialized expertise may arise, further increasing operational costs. It’s important to weigh these risks before you integrate new technology into your property.
Evaluate cost vs benefit before renovations
When managing rental upgrades, focus on profitability and tenant satisfaction. While fancy cosmetic changes and complex technology installations might seem like worthwhile updates, they’re not always the best investment. Focus on cost-effective upgrades that offer lasting benefits—like essential maintenance and improvements that improve the property’s functionality and longevity.
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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