When it comes to improving your investment properties, certain upgrades can provide a solid return for the money—and some don’t. A common mistake made by rental property owners is spending excessive amounts of money on upgrades that don’t significantly raise the value of their property or fail to boost the overall appeal of the rental home to potential residents.
Learning which upgrades to avoid can help you invest wisely in the right property improvements. Experts in the field recommend avoiding three things with regard to upgrades: intricate landscaping, the installation of hardwood floors, and the inclusion of comprehensive smart technology features.
Elaborate Landscaping
An appealing feature of a rental home is clean, low-maintenance landscaping. Numerous renters prefer a yard that is in good condition and easy to take care of. Upgrading your rental property’s landscaping by planting numerous attractive plants and trees and creating gorgeous flower beds alongside spacious and well-maintained grass can be a valuable investment. In the end, curb appeal plays a big role in the perceived value of a rental home.
Yet, excessively investing in and establishing a high-maintenance yard wastes money as it adds little to the property value or the renter’s satisfaction. Also, while your renter may initially be drawn to the beautiful landscaping, they may eventually see it as a burden and neglect your property or choose to vacate. When landscaping a rental property, it is best to stick to a simple approach.
Hardwood Flooring
Wood flooring is popular among homeowners for its aesthetic look and warm atmosphere. In spite of this, it requires a lot of upkeep and is susceptible to damage from water leaks or other incidents. In addition, it is critical to evaluate whether renters will adequately care for a hardwood floor.
Considering all these factors, it’s essential to acknowledge that while wood flooring may be a pleasing upgrade for residents, most renters are content with a low-maintenance alternative that mimics wood. You need to be aware that natural hardwood is one of the more expensive upgrades, which means you may not recover the installation cost, even if you decide to increase the rent.
Overdoing Smart Technology
Property managers and landlords in today’s rental market may be inspired to integrate advanced technology such as smart thermostats, keyless entry systems, and energy-efficient equipment to attract tenants and stay ahead of others.
However, property owners must assess the cost versus benefit when introducing these improvements. While these technologies offer convenience and utility, they are often connected with a significant price tag that may not be worth the return on investment.
To provide an example, smart home systems require upfront installation fees and regular maintenance, which can reduce potential profits in the long run. Also, state-of-the-art security features may offer comfort but have no major influence on rental rates or tenant enjoyment.
Cutting-edge technology that is considered top-of-the-line today can quickly become obsolete tomorrow, requiring expensive upgrades or alternatives. Apart from that, the complexity of these systems can give rise to technical problems that involve specialized expertise and resources to resolve, contributing to the property’s overall operational costs. It is important to consider all of these factors when choosing to integrate new technology into your property.
Ensuring both profitability and tenant satisfaction should be the number one concern. While the temptation to indulge in flashy visual improvements and complex technology installations may be strong, they may not always be the best investment. As a substitute, consider implementing cost-effective upgrades that produce actual benefits, such as essential maintenance and developments that improve the property’s functionality and stability. By thoroughly evaluating the cost and benefit of each development and prioritizing those that provide the greatest return on investment, you can ensure long-term success in the rental market.
Would you like to maximize the returns on your investment property in Dunwoody and its vicinity? You wouldn’t find a better option than Real Property Management Greenway! If you need help in accomplishing your objectives, don’t hesitate to give us a call at 770-771-6102 or send us a message online.
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