When it comes to improving your investment properties, some upgrades offer a solid return for the money—and some don’t. One of the worst things that rental property owners can do is invest a lot of money on upgrades that don’t increase much value to their property or simply don’t boost the overall appeal of the rental home to possible residents.
Being aware of which upgrades to avoid can help you invest wisely in the right property improvements. Extensive smart technological features, hardwood flooring, and sophisticated landscaping are three things that experts in the field say should not be improved.
Elaborate Landscaping
One selling point of rental homes is clean, low-maintenance landscaping. The majority of renters are looking for an attractive yard that is pretty easy to take care of. It could seem like a good idea to upgrade your rental property’s landscaping by planting lots of lovely plants and trees or making stunning flower beds next to a big, green lawn. After all, curb appeal is a huge portion of the perceived value of a rental home.
Yet, overstretching and creating a high-maintenance yard wastes money since they do little to improve the property value or the renter’s pleasure. The attractive landscape may entice your renter at first, but they may eventually come to dislike it and either neglect your property or opt to leave. Landscaping a rental property should be kept basic.
Hardwood Flooring
Wood flooring is popular among homeowners due to its natural appearance and cozy feel. However, it requires a lot of upkeep and is prone to damage from water leaks or other accidents. Additionally, it’s crucial to consider whether renters will adequately care for a hardwood floor.
Considering all these factors, it’s worth noting that while wood flooring may be a desirable upgrade for residents, most renters are content with a low-maintenance look-alike substitute. You have to keep in mind that natural hardwood is one of the more expensive upgrades, which implies you may not recover the installation cost, even if you choose to increase the rent.
Overdoing Smart Technology
Property managers and landlords in today’s rental market may be tempted to integrate advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and stay ahead of the competition.
However, property owners must assess the cost versus benefit of integrating such advancements. These technologies offer convenience and efficiency, but their significant price tag makes it hard to justify them.
For instance, smart home systems demand upfront costs and regular maintenance, which can reduce potential profits over the years. Additionally, modern security features may make people safer, but they won’t influence rental rates or make tenants happier.
What may be believed high-tech now could easily become old-fashioned tomorrow, needing expensive upgrades or replacements. What is more, due to the intricate nature of these systems, technical problems may arise, necessitating specialized expertise and resources to resolve them, ultimately increasing the property’s overall operational costs. When choosing to integrate new technology into your property, it is crucial to think about all these factors.
Profitability and tenant satisfaction must be prioritized. Fancy makeovers and complex technology installations could seem enticing, but they may not always be the best investment. As an alternative, think about making cost-effective upgrades that provide actual benefits, such as essential maintenance and enhancements that improve the property’s functionality and lifespan. To ensure long-term success in the rental market, you need to evaluate the cost versus profit of each improvement and put the ones that yield the greatest return on investment first.
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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