In relation to improving your investment properties, some renovations deliver a solid return for the money—and some don’t. One of the major errors that rental property owners can make is shelling out a lot of money on upgrades that don’t add much value to their property or simply don’t enhance the overall appeal of the rental home to prospective residents.
Being knowledgeable about which upgrades to avoid can help you invest wisely in the right property improvements. Most experts in the field say that when it comes to upgrades, you should stay away from three things: installing hardwood floors, doing a lot of landscaping, and adding a lot of smart technology features.
Elaborate Landscaping
A rental home with clean, low-maintenance landscaping is more likely to be rented. A nice yard that is easy to take care of is what most renters want. Upgrading your rental property’s landscaping by adding lots of pretty plants and trees or making gorgeous flower beds alongside a large, lush lawn area may seem like a valuable addition. Ultimately, curb appeal is an important component of the perceived value of a rental home.
However, going too far and creating a high-maintenance yard wastes money because it fails to increase the property value or the renter’s satisfaction. Also, the nice landscaping might attract your renter at first, but they may quickly find it too much work and neglect your property or decide to leave. With regard to landscaping a rental property, less in more.
Hardwood Flooring
Wood flooring is popular among homeowners because it looks natural and feels warm. Yet, it requires a lot of upkeep and is likely to be damaged by water leaks or other calamities. Furthermore, you need to factor in whether renters will adequately care for a hardwood floor.
Taking all of these into consideration, it’s critical to note that while wood flooring may be an appealing upgrade for residents, most renters are content with a low-maintenance look-alike choice. You need to keep in mind that natural hardwood is one of the more expensive upgrades, which implies that you may not recover the installation cost, even if you choose to increase the rent.
Overdoing Smart Technology
In today’s rental market, property managers and landlords may be inclined to integrate advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
However, property owners should assess the cost versus benefit of making these kinds of improvements. These technologies offer convenience and efficiency, but they typically come with a significant price tag that may not justify the return on investment.
In particular, smart home systems require initial setup fees and a regular maintenance, which can reduce potential profits as times goes on. Additionally, innovative security features may grant peace of mind but not drastically influence rental rates or tenant fulfillment.
What may be believed to be hi-tech today could soon turn outdated tomorrow, calling for expensive upgrades or replacements. The complicated nature of these systems can also cause technical problems that need specialized expertise and resources to address, which raises the property’s overall operational costs. When opting to integrate new technology into your property, you need to think about all these things.
It’s important to emphasize both profitability and tenant satisfaction. While elaborate cosmetic improvements and complex technology installations may seem alluring, they may not always be the best investment. Alternatively, think about making cost-effective upgrades that offer genuine advantages, such as essential maintenance and changes that improve the property’s functionality and long life. By meticulously evaluating the cost against the perks of each upgrade and giving importance to those that give you the best return on investment, you can ensure long-term success in the rental market.
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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