Improving your investment properties often involves deciding which enhancements truly boost your return on investment. However, some of the biggest mistakes rental property owners can make include investing heavily in upgrades that do not add much value or increase the appeal of the rental home.
Understanding the upgrades to avoid can lead to smarter investment decisions when it comes to property improvements. Experts commonly agree there are three upgrades to steer clear of: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Attractive, low-maintenance landscaping is a top feature for a rental home. Most renters are looking for an outdoor space that is easy to care for. Upgrading your rental property’s landscaping with flourishing plants and trees, ornate flowerbeds, or a sprawling, large lush lawn might seem like a valuable addition because of its impact on curb appeal and the value of a rental home.
Still, a high-maintenance yard doesn’t add much to the property value or improve renter’s satisfaction. While beautiful landscaping might initially impress tenants, they may later find it overwhelming, leading them to neglect your property or move out. With landscaping a rental property, keeping things simple is usually the better route.
No need for expensive hardwood flooring
Homeowners love wood flooring for its natural style and warmth, but it also requires a lot of upkeep and is prone to damage from water leaks and spills. It’s uncertain whether renters will adequately care for a hardwood floor.
Despite the appeal, while wood flooring may be a desirable upgrade for some, most tenants are satisfied with a low-maintenance look-alike option. Because natural hardwood is one of the more expensive upgrades, you may not recover the installation cost even if you increase the rent.
Keep smart tech installations to a minimum
Many property managers and landlords opt for advanced technology—like smart thermostats, keyless entry systems, and energy-efficient appliances—to attract tenants and remain competitive.
However, property owners need to assess the cost versus benefit. Though these technologies offer convenience and efficiency, their significant price tag often fails to justify the return on investment.
Smart home systems also require initial setup and ongoing maintenance costs. Advanced security features may bring peace of mind but don’t usually significantly affect rental rates or tenant satisfaction. Plus, technologies that are cutting-edge today may become outdated tomorrow, bringing costly upgrades and technical issues requiring specialized expertise. These factors increase operational costs, making it critical to evaluate your decision to integrate new technology into your property.
Evaluate cost vs benefit before renovations
To ensure both profitability and tenant satisfaction, avoid fancy cosmetic changes and complex technology installations unless they truly benefit the property. Opt for cost-effective upgrades that improve functionality and longevity—these are often the best investment.
Want to get the most of your rental property in Royal Oak and its neighboring area? Don’t look any further than Real Property Management Silverstone! We’re always here to help you reach your goals – give us a call at 586-992-6419 or send us a message online.
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