When it comes to improving your investment properties, specific changes offer a solid return for the money, while others may not be as beneficial. One common error made by rental property owners is investing a significant amount of money on upgrades that don’t significantly increase the value of their property or enhance the overall appeal of the rental home to potential residents.
Understanding which upgrades to avoid can help you invest wisely in the right property improvements. As per industry experts, it is generally advised to steer clear of certain improvements including intricate landscaping, installing hardwood flooring, and the incorporation of extensive smart technology features.
Elaborate Landscaping
Having a rental home with well-maintained and low-maintenance landscaping is definitely a desirable quality. Many renters desire a well-kept that is pretty easy to take care of. Upgrading your rental property’s landscaping with an array of stunning plants and trees, as well as creating elegant flower beds surrounding a spacious, vibrant lawn, can be seen as a valuable enhancement. In the end, curb appeal plays a significant role in the perceived value of a rental home.
However, going over the top and creating a high-maintenance yard wastes money since it doesn’t add much to the property value or the renter’s enjoyment. In addition, while your renter may be initially attracted to the lovely landscaping, they may eventually find it challenging and neglect your property or choose to relocate. For landscaping a rental property, it is advisable to keep things simple.
Hardwood Flooring
Wood flooring is popular among homeowners because of its natural design and warm ambiance. Nevertheless, it requires a lot of upkeep and is open to damage from water leaks or unforeseen incidents. Moreover, it is vital to take into account whether renters will adequately care for a hardwood floor.
Given these variables, it’s important to highlight that while wood flooring may be a pleasing upgrade for residents, most renters are content with a low-maintenance alternative that resembles wood. Keep in mind that opting for natural hardwood is one of the more expensive upgrades, and there is a chance that you won’t be able to 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 inclined to integrate advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and stay ahead of the competition.
Yet, property owners should assess the cost versus benefit of including these enhancements. While these technologies offer convenience and efficiency, they often come with a significant price tag that may not justify the return on investment.
Take into consideration that smart home systems come with upfront setup expenses and regular maintenance, which can reduce potential profits over time. Similarly, complex security features may offer a sense of security but have minimal influence on rental rates or tenant satisfaction.
What is considered modern today could quickly become obsolete tomorrow, calling for expensive upgrades or new ones. On top of that, the complex structure of these systems can lead to technical problems that need specialized expertise and tools to resolve, adding to the property’s overall operational costs. Considering all these factors is crucial when deciding to integrate new technology into your property.
It’s crucial to focus on both profitability and tenant satisfaction. While fancy cosmetic changes and complex technology installations may seem tempting, they may not always be the best investment. Instead, consider making cost-effective upgrades that offer real benefits, such as essential maintenance and improvements that improve the property’s functionality and longevity. By carefully evaluating the cost versus benefit of each upgrade and prioritizing those that provide the greatest return on investment, you can ensure long-term success in the rental market.
Interested in optimizing the return on your investment property in Davis County and the adjacent area? Discover the perfect solution at Real Property Management Northern Utah! Feel free to reach out to us any time to discuss how we can assist you in achieving your objectives. Give us a call at 801-546-1770 or send us a message online.
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