When it comes to improving your investment properties, certain renovations can yield a solid return on investment, while others fall short. One of the most common mistakes rental property owners can make is overspending on upgrades that do not add much value
or enhance the overall appeal of the rental home.
Identifying the upgrades to avoid allows you to make smarter investment decisions for your property improvements. Real estate professionals often point to three 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 highly desirable feature for a rental home. Most tenants appreciate a yard that’s easy to maintain. Upgrading your rental property’s landscaping with an abundance of decorative plants and trees or manicured garden beds beside a large, lush lawn might seem like a valuable addition. After all, curb appeal plays a crucial role in the perceived value of a rental home.
Nevertheless, a high-maintenance yard doesn’t add much to the property value or renter’s satisfaction. Though beautiful landscaping may catch a tenant’s eye, they may later find the upkeep burdensome and either neglect your property or choose to move out. When landscaping a rental property, simple is better.
No need for expensive hardwood flooring
Wood flooring is frequently preferred by homeowners because of its natural style and warmth. However, it requires a lot of upkeep and is prone to damage, especially from water leaks. Plus, there’s no guarantee renters will adequately care for a hardwood floor.
Considering all aspects, while wood flooring may be a desirable upgrade, most renters are content with a low-maintenance look-alike option. Since natural hardwood is one of the more expensive upgrades, you may not recover the installation cost even if you increase the rent.
Keep smart tech installations to a minimum
In today’s rental industry, property managers and landlords might feel compelled to install advanced technology such as smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
Still, property owners should assess the cost versus benefit of these additions. Even though such technologies offer convenience and efficiency, they often carry a significant price tag that may not be justified by the return on investment.
Smart home systems come with initial setup and ongoing maintenance costs that can reduce overall profits. While advanced security features can provide peace of mind, they don’t always significantly affect rental rates or tenant satisfaction. Technologies that seem cutting-edge today can become outdated quickly, resulting in costly upgrades. Plus, technical issues may arise that require specialized help, increasing operational costs. So, think carefully before you integrate new technology into your property.
Evaluate cost vs benefit before renovations
You should always prioritize both profitability and tenant satisfaction. Although fancy cosmetic changes and complex technology installations might seem attractive, they aren’t always the best investment. Focus on cost-effective upgrades like essential maintenance and improvements that enhance the property’s functionality and longevity.
Are you interested in optimizing the returns on your investment property in Sandusky and its vicinity? There is no need to search any further than Real Property Management Clarity Team! If you need assistance in achieving your objectives – give us a call at 567-200-2320 or send us a message online.
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