Enhancing your investment properties requires careful consideration, as some property improvements deliver a robust return on investment, while others fall short. One of the frequent mistakes rental property owners can make is allocating substantial funds to upgrades that do not add much value or fail to elevate the appeal of the rental home for prospective tenants.
Recognizing which upgrades to steer clear of can lead to smarter investment decisions for your rental property. Professionals in the industry consistently point out 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 sought-after feature for a rental home. Most tenants desire a clean, manageable yard that’s simple to care for. Upgrading your rental property’s landscaping with abundant plants and trees or crafting ornate garden beds beside a large, lush lawn may seem like a valuable addition. After all, curb appeal plays a major role in the perceived value of a rental home.
However, a high-maintenance yard drains resources since it doesn’t add much to the property value or boost renter’s satisfaction. Although tenants might initially be captivated by beautiful landscaping, they could soon find it 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 cherished by homeowners for its natural style and warmth. Yet, it demands significant upkeep and is susceptible to damage from water leaks or other incidents. Additionally, property owners must 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 cover expenses.
Keep smart tech installations to a minimum
In today’s rental landscape, property managers and landlords may feel pressured 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 such additions. While these technologies offer convenience and efficiency, their significant price tag often overshadows the return on investment. Smart home systems involve initial setup and ongoing maintenance costs that can diminish profitability and tenant satisfaction. Advanced security features may offer comfort but typically don’t significantly affect rental rates or tenant satisfaction. Technologies considered cutting-edge today can quickly become outdated, requiring costly upgrades. Moreover, 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 vital. While fancy cosmetic changes and complex technology installations may appear enticing, they’re not always the best investment. Instead, prioritize cost-effective upgrades that provide genuine benefits, such as essential maintenance and improvements that improve the property’s functionality and longevity.
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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