Some improvements yield a solid return for the money when it comes to improving your investment properties, while others don’t. Spending a lot of money on upgrades that don’t upsurge the value of their property or simply don’t increase the overall appeal of the rental home to potential residents is one of the biggest mistakes that rental property owners can make.
Figuring out which upgrades to avoid can help you invest wisely in the right property improvements. Industry professionals generally agree that three things should be avoided when making improvements: elaborate landscaping, installing hardwood flooring, and extensive smart technology features.
Elaborate Landscaping
An appealing attribute for a rental home is a clean, low-maintenance landscaping. Most renters prefer a lovely yard that is somewhat easy to take care of. Upgrading your rental property’s landscaping with the addition of beautiful plants and trees or making lovely flower beds next to a spacious, verdant lawn area may appear to be a valuable improvement. After all, curb appeal plays a crucial part in the perceived value of a rental home.
Yet, overly spending and developing a high-maintenance yard wastes money as it doesn’t improve the property value or the renter’s contentment. In addition, despite the initial allure of the exquisite landscaping, your renter may soon deem it too burdensome and either neglect your property or opt to move out. With regard to landscaping a rental property, it is recommended to keep everything simple.
Hardwood Flooring
Wood flooring is popular among homeowners because of its warmth and inherent beauty. However, it requires a lot of upkeep and can get damaged from water leaks or unexpected events. It is also essential to take into account whether renters will adequately care for a hardwood floor.
Considering all these aspects, it’s important to mention that while wood flooring may be a better upgrade for residents, most renters are content with a low-maintenance look-alike substitute. It’s worth remembering that natural hardwood is one of the more expensive upgrades, which indicates you may not recover the installation cost, even if you choose to increase the rent.
Overdoing Smart Technology
In today’s rental market, property managers and landlords may be eager to integrate advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and stay competitive.
However, property owners must assess the cost versus benefit of introducing such changes. Even though these technologies offer convenience and productivity, they usually contain a significant price tag that may not justify the return on investment.
For instance, smart home systems require upfront installation fees and regular maintenance, which can reduce potential profits in the future. Also, futuristic security features may provide a sense of reassurance but may not influence rental rates or tenant satisfaction.
What may be considered state-of-the-art today could quickly become out-of-date tomorrow, bringing about expensive upgrades or replacements. Additionally, the intricacy of these systems can cause technical problems that demand specialized expertise and tools to address, increasing the property’s overall operational costs. When deciding to integrate new technology into your property, it is critical to take all of these things into account.
It’s imperative to give priority to both profitability and tenant satisfaction. Fancy cosmetic modifications and complex technology installations may be inviting, but they may not always be the best investment. As an alternative, think about making cost-effective upgrades that yield real benefits, such as essential maintenance and improvements that improve the property’s functionality and durability. To ensure long-term success in the rental market, thoroughly evaluate the cost versus benefit of each upgrade and concentrate on those that deliver the highest return on investment.
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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