When working on improving your investment properties, certain property improvements can offer a robust return on investment, while others fall short. One of the key mistakes rental property owners can make is dedicating large budgets to upgrades that do not add much value or fail to elevate the appeal of the rental home for future renters.
Understanding which upgrades to steer clear of can pave the way for smarter investment decisions for your rental property. Experts in the field frequently cite three upgrades to avoid: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Neat, low-maintenance landscaping is a valued feature for a rental home. Most tenants desire a clean, low-effort yard that’s simple to maintain. Upgrading your rental property’s landscaping with countless plants and trees or designing detailed garden beds next to a large, lush lawn might seem like a valuable addition. After all, curb appeal greatly influences the perceived value of a rental home.
Yet, a high-maintenance yard squanders money since it doesn’t add much to the property value or enhance renter’s satisfaction. Though tenants might initially be charmed by beautiful landscaping, they could soon find it too taxing and neglect your property or choose to move out. When landscaping a rental property, simple is better.
No need for expensive hardwood flooring
Wood flooring is treasured by homeowners for its natural style and warmth. However, it demands extensive upkeep and is susceptible to damage from water leaks or other accidents. Property owners must also determine whether tenants will adequately care for a hardwood floor.
With these concerns in mind, 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 raise the rent to balance expenses.
Keep smart tech installations to a minimum
In the modern rental environment, property managers and landlords may feel urged to adopt advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
Still, property owners must assess the cost versus benefit of these enhancements. While these technologies offer convenience and efficiency, their significant price tag often diminishes the return on investment. Smart home systems involve initial setup and ongoing maintenance costs that can reduce profitability and tenant satisfaction. Advanced security features may offer comfort but typically don’t significantly affect rental rates or tenant satisfaction. Technologies seen as cutting-edge today can quickly become outdated, requiring costly upgrades. Moreover, technical issues that need specialized expertise may occur, further increasing operational costs when you integrate new technology into your property.
Evaluate cost vs benefit before renovations
Emphasizing profitability and tenant satisfaction is essential. While fancy cosmetic changes and complex technology installations may appear enticing, they’re not always the best investment. Instead, choose cost-effective upgrades that provide real value, such as essential maintenance and improvements that improve the property’s functionality and longevity.
Are you interested in maximizing the return on your investment property returns in Clifton Park and the surrounding area? Real Property Management Capital Region is the only destination to consider! If you need assistance in reaching your goals, feel free to contact us at 518-290-1448 or send us a message online.
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