When improving your investment properties, some updates can boost your return on investment, while others may be financially unwise. One of the top mistakes rental property owners can make is putting funds into upgrades that do not add much value
or have minimal effect on the appeal of the rental home.
Avoiding unnecessary upgrades helps you make smarter investment decisions when planning your next round of property improvements. The top three upgrades to steer clear of include elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
A property with low-maintenance landscaping is a highly marketable feature for a rental home. Upgrading your rental property’s landscaping with lots of decorative plants and trees, flower patches, or a large, lush lawn can seem like a valuable addition. The curb appeal might elevate the perceived value of a rental home.
Still, a high-maintenance yard often doesn’t add much to the property value and may not improve renter’s satisfaction. The novelty of beautiful landscaping may fade, leading tenants to neglect your property or move out. For best results in landscaping a rental property, remember: simple is better.
No need for expensive hardwood flooring
Although wood flooring is favored by homeowners for its natural style and warmth, it requires a lot of upkeep and is prone to damage, especially from water leaks. Tenants may not always adequately care for a hardwood floor.
Even though wood flooring may be a desirable upgrade, renters are usually content with low-maintenance look-alike options. Because natural hardwood is one of the more expensive upgrades, the chance to recover the installation cost is slim—even with raised rent.
Keep smart tech installations to a minimum
Some property managers and landlords opt for advanced technology—from smart thermostats to keyless entry systems and energy-efficient appliances—to attract tenants and remain competitive.
That said, property owners need to assess the cost versus benefit. Although technologies offer convenience and efficiency, they can carry a significant price tag that undermines return on investment.
These home systems involve initial setup and ongoing maintenance costs. Though advanced security features offer peace of mind, they rarely significantly affect rental rates or improve tenant satisfaction. Newer technologies also age quickly, becoming outdated and requiring costly upgrades. And when malfunctions arise, they may lead to technical issues that need specialized expertise, further increasing operational costs. These realities should be considered before you integrate new technology into your property.
Evaluate cost vs benefit before renovations
For the best outcome, prioritize profitability and tenant satisfaction. While fancy cosmetic changes and complex technology installations may appear attractive, they aren’t always the best investment. Focus on cost-effective upgrades such as essential maintenance and improvements that improve the property’s functionality and longevity.
Are you an investor in Bella Vista or the surrounding area who wants to get the most out of your property? Stop searching and start working with Real Property Management First Choice! Reach out to us at 479-242-0791 or send us a message online at any time, and we would be happy to assist you in achieving your objectives.
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