When it comes to improving your investment properties, some renovations yield a strong return on investment, while others fall flat. One of the common mistakes rental property owners can make is overspending on upgrades that do not add much value or fail to improve the appeal of the rental home to future occupants.
Being able to pinpoint upgrades to avoid helps in making smarter investment decisions when planning property improvements. Experts consistently caution against three main upgrades to steer clear of: 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 desirable feature for a rental home. Tenants often prefer outdoor spaces that are easy to keep up. Upgrading your rental property’s landscaping with decorative plants and trees, colorful flower arrangements, or a large, lush lawn may seem like a valuable addition. After all, curb appeal significantly impacts how people perceive the value of a rental home.
But a high-maintenance yard can become a liability, as it generally doesn’t add much to the property value or to renter’s satisfaction. While a resident might initially enjoy beautiful landscaping, they may eventually find it too demanding and either neglect your property or move out. When it comes to landscaping a rental property, remember that simple is better.
No need for expensive hardwood flooring
Though wood flooring appeals to homeowners for its natural style and warmth, it requires a lot of upkeep and is prone to damage, especially in cases of water leaks or other household mishaps. It’s also uncertain whether tenants will adequately care for a hardwood floor.
Although wood flooring may be a desirable upgrade, most renters are satisfied with low-maintenance look-alike options. It’s important to understand that natural hardwood is one of the more expensive upgrades, and you may not be able to recover the installation cost, even with rent adjustments.
Keep smart tech installations to a minimum
Today’s rental market encourages property managers and landlords to consider advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
That said, property owners must carefully assess the cost versus benefit of adding these features. While such technologies offer convenience and efficiency, the significant price tag often doesn’t translate into a solid return on investment.
Implementing home systems involves initial setup and ongoing maintenance costs that can reduce long-term profits. Even though advanced security features offer reassurance, they rarely significantly affect rental rates or improve tenant satisfaction. Many technologies that seem innovative today may soon be outdated, leading to costly upgrades. Furthermore, some tech features create technical issues that need specialized expertise, thereby increasing operational costs. These aspects should be considered before choosing to integrate new technology into your property.
Evaluate cost vs benefit before renovations
You’ll want to strike a balance between profitability and tenant satisfaction. While it’s tempting to pursue fancy cosmetic changes and complex technology installations, they’re not always the best investment. Instead, aim for cost-effective upgrades that deliver real value, such as essential maintenance and improvements that improve the property’s functionality and longevity.
Are you looking to increase your investment property profits in Richmond and its vicinity? Look no further than Real Property Management Richmond Metro! We’re always here to assist you in reaching your objectives – give us a call at 804-823-8882 or send us a message online.
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