When focusing on improving your investment properties, some property improvements can yield a strong return on investment, while others disappoint. One of the common mistakes rental property owners can make is allocating substantial resources to upgrades that do not add much value or fail to enhance the appeal of the rental home to prospective tenants.
Recognizing which upgrades to steer clear of can lead to smarter investment decisions for your rental property. Industry professionals consistently highlight three upgrades to avoid: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Well-maintained, low-maintenance landscaping is a desirable feature for a rental home. Most tenants seek a tidy, hassle-free yard that’s easy to care for. Upgrading your rental property’s landscaping with numerous plants and trees or crafting ornate garden beds alongside a large, lush lawn may appear as a valuable addition. After all, curb appeal plays a pivotal role in the perceived value of a rental home.
However, a high-maintenance yard wastes funds as it doesn’t add much to the property value or boost renter’s satisfaction. While tenants may initially be drawn to 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 cherished by homeowners for its natural style and warmth. However, it requires a lot of upkeep and is prone to damage from water leaks or other incidents. Property owners must also consider whether tenants will adequately care for a hardwood floor.
Given these challenges, it’s notable 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, meaning you may not recover the installation cost, even if you increase the rent to offset expenses.
Keep smart tech installations to a minimum
In today’s rental market, property managers and landlords may be tempted to integrate advanced technology such as smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
Yet, 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 reassurance 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
Prioritizing profitability and tenant satisfaction is crucial. While fancy cosmetic changes and complex technology installations may seem appealing, they’re not always the best investment. Instead, opt for cost-effective upgrades that deliver tangible benefits, such as essential maintenance and improvements that improve the property’s functionality and longevity.
Want to get the most out of your investment properties in North Naples and its vicinity? Simply direct your attention to Real Property Management SW Coast! Give us a call at 239-790-2840 or send us a message online to discuss how we may assist you in attaining your goals. We’re always available.
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