When focusing on improving your investment properties, some property improvements can deliver a high return on investment, while others fall flat. One of the frequent mistakes rental property owners can make is channeling significant resources into upgrades that do not add much value or fail to heighten the appeal of the rental home to prospective renters.
Recognizing which upgrades to steer clear of can foster smarter investment decisions for your rental property. Experts in the industry routinely identify three upgrades to avoid: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Well-kept, low-maintenance landscaping is a desirable feature for a rental home. Most tenants prefer a tidy, hassle-free yard that’s simple to care for. Upgrading your rental property’s landscaping with a profusion of plants and trees or crafting ornate garden beds alongside a large, lush lawn may seem like a valuable addition. After all, curb appeal plays a pivotal role in the perceived value of a rental home.
However, a high-maintenance yard drains money as it doesn’t add much to the property value or boost renter’s satisfaction. While tenants may initially be enchanted by beautiful landscaping, they might soon find it too burdensome and neglect your property or opt to move out. When landscaping a rental property, simple is better.
No need for expensive hardwood flooring
Wood flooring is revered by homeowners for its natural style and warmth. Yet, it requires a lot of upkeep and is prone to damage from water leaks or other mishaps. Property owners must also evaluate whether tenants will adequately care for a hardwood floor.
Considering these factors, it’s worth noting that while wood flooring may be a desirable upgrade for some, most renters are content with a low-maintenance look-alike option. Natural hardwood is one of the more expensive upgrades, so you may not recover the installation cost, even if you increase the rent to offset expenses.
Keep smart tech installations to a minimum
In the current rental landscape, property managers and landlords may feel compelled to incorporate advanced technology such as smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
Nevertheless, property owners must carefully assess the cost versus benefit of these upgrades. Although these technologies offer convenience and efficiency, their significant price tag often undermines the return on investment. Smart home systems involve initial setup and ongoing maintenance costs that can erode profitability and tenant satisfaction. Advanced security features may provide comfort but typically don’t significantly affect rental rates or tenant satisfaction. Technologies considered cutting-edge today can quickly become outdated, necessitating costly upgrades. Additionally, technical issues that need specialized expertise may arise, further increasing operational costs when you integrate new technology into your property.
Evaluate cost vs benefit before renovations
Focusing on profitability and tenant satisfaction is crucial. While fancy cosmetic changes and complex technology installations may seem enticing, they’re not always the best investment. Instead, prioritize cost-effective upgrades that deliver tangible benefits, such as essential maintenance and improvements that improve the property’s functionality and longevity.
Aiming to enhance the return on your investment properties in Buda and the surrounding areas? Think about reaching out to Real Property Management Instant Equity! Contact us at 512-500-0422 or send us a message online at any time and we will be happy to help you accomplish your goals.[/vc_column_text][/vc_column][/vc_row]
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