Some upgrades can provide a solid return for the money when it comes to improving your investment properties, while others do not. A mistake commonly committed by rental property owners is devoting a lot of money to upgrades that fail to boost the value of their property or simply don’t enhance the overall appeal of the rental home to forthcoming residents.
Discovering which upgrades to avoid can help you invest wisely in the right property improvements. According to industry professionals, it is often advised to avoid three things while upgrading: intricate landscaping, the installation of hardwood flooring, and the inclusion of comprehensive smart technology features.
Elaborate Landscaping
A rental property that is clean and low-maintenance landscaping is highly sought after. Most tenants aspire to have a yard that is aesthetically pleasing and easy to take care of. Upgrading your rental property’s landscaping through the addition of lovely plants and trees or making exquisite flower beds alongside a large, lush lawn area may seem like a valuable addition. At the end of the day, curb appeal is greatly influencing the perceived value of a rental home.
However, heavily investing and building a high-maintenance yard wastes money as it does not enhance the property value or the satisfaction of renters. In addition, although your renter might initially be drawn to the stunning landscaping, they may soon find it too much of a hassle and neglect your property or decide to move out. When it comes to landscaping a rental property, it is better to keep things basic.
Hardwood Flooring
Warmth and natural look make wood flooring popular among homeowners. Yet, it requires a lot of upkeep and is prone to damage from water leaks or other disasters. Furthermore, it’s fundamental to know whether renters will adequately care for a hardwood floor.
Considering all these aspects, it’s best to keep in mind that while wood flooring can be a great upgrade for residents, most renters are content with a low-maintenance look-alike substitute. It’s vital to recognize that natural hardwood is one of the more expensive upgrades, which means 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 feel motivated to integrate advanced technology such as smart thermostats, keyless entry systems, and energy-efficient devices to attract tenants and remain competitive.
However, property owners must assess the cost versus benefit of including such enhancements. Although these technologies offer convenience and performance, they often come with a significant price tag and may not undermine the return on investment.
The upfront setup fees and regular maintenance connected with smart home systems, for example, can eventually reduce potential profits. Also, state-of-the-art security features may give peace of mind but not significantly influence rental rates or tenant fulfillment.
Anything deemed cutting edge today might become outmoded afterward, resulting in expensive upgrades or replacements. The intricacy of these systems may also bring about technical problems that require specialized expertise and funds to address, contributing to the property’s overall operational costs. It is essential to consider all these factors when deciding to integrate new technology into your property.
Both profitability and tenant satisfaction should be prioritized equally. Fancy cosmetics to appearance and complex technology installations may be tempting, but they may not always be the best investment. As opposed, consider making cost-effective upgrades that provide actual benefits, such as essential maintenance and upgrades that improve the property’s functionality and durability. You can ensure long-term success in the rental market by thoroughly evaluating the cost versus benefit of each upgrade and choosing those that deliver the best return on investment.
Do you want to maximize your Gulfport and surrounding investment property? Consider Real Property Management Sunshine City as your first option! We are consistently accessible to assist you in achieving your objectives – give us a call on 727-625-4351 or send us a message online.
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