Certain modifications can yield a solid return for the money when it comes to improving your investment properties, while others don’t. One of the leading mistakes that rental property owners can make is devoting a lot of money to upgrades that don’t add much value to their property or simply don’t boost the overall appeal of the rental home to prospective residents.
Determining which upgrades to avoid can help you invest wisely in the right property improvements. Industry experts generally agree that three things should be avoided when it comes to upgrades: elaborate landscaping, installing hardwood flooring, and extensive smart technology features.
Elaborate Landscaping
A rental property that is clean, low-maintenance landscaping is desirable. The desire of most tenants is to have a lovely and easy to take care of yard. Upgrading your rental property’s landscaping by adding a ton of lovely plants and trees or making gorgeous flower beds alongside a large, lush lawn area may seem like a worthwhile upgrade. Finally, curb appeal is an important aspect of the perceived value of a rental home.
However, going overboard and building a high-maintenance yard wastes money because it fails to boost the property value or the contentment of renters. Furthermore, although the lovely landscape may initially lure a renter, they can eventually find it too much work and opt to move out or neglect your property. When it comes to landscaping a rental property, it is preferable to keep things simple.
Hardwood Flooring
Warmth and natural design make wood flooring popular among homeowners. However, it requires a lot of upkeep and is sensitive to damage from water leaks or other misfortunes. Additionally, it’s important to take into account whether renters will adequately care for a hardwood floor.
Considering all these factors, it’s critical to keep in mind that while wood flooring may be an excellent upgrade for residents, numerous renters are content with a low-maintenance look-alike alternative. It’s crucial to understand that natural hardwood is one of the more expensive upgrades, which means you may not recover the installation cost, even if you elect to increase the rent.
Overdoing Smart Technology
In today’s rental market, property managers and landlords feel motivated to integrate advanced technology such as smart thermostats, keyless entry systems, and energy-efficient devices to attract tenants and remain competitive.
Nevertheless, property owners must assess the cost versus benefit of making such changes. Although these technologies offer convenience and effectiveness, they often provide a significant price tag and may not be worth the investment.
The initial setup expenses and regular maintenance associated with smart home systems, for instance, can eventually reduce potential profits. Similarly, state-of-the-art security features may give comfort but not significantly influence rental rates or tenant happiness.
Anything considered cutting edge now might soon become antiquated tomorrow, involving expensive upgrades or replacements. The intricacy of these systems may also lead to technical problems that necessitate specialized expertise and funds to fix, adding to the property’s overall operational costs. It is essential to consider all these factors when deciding to integrate new technology into your property.
Profitability and tenant satisfaction must be given equal attention. Fancy alterations to appearance and complex technology installations could be alluring, but they may not always be the best investment. As an alternative, consider making cost-effective upgrades with tangible advantages, such as essential maintenance and additions that improve the property’s functionality and durability. You can ensure long-term success in the rental market by carefully evaluating the cost versus benefit of each update and emphasizing those that offer the best return on investment.
Are you interested to get the most out of your Minnetonka and surrounding investment property? Take Real Property Management Viking as your first choice! We’re always available to help you reach your goals – give us a call on 612-230-3953 or send us a message online.
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