On the subject of improving your investment properties, specific improvements offer a solid return for the money—and some don’t. One common error performed by rental property owners is spending a lot of money on upgrades that do not greatly increase the value of their property or simply don’t improve the overall appeal of the rental home to potential residents.
Figuring out which upgrades to avoid can help you invest wisely in the right property improvements. With regard to improvements, professionals in the field typically agree on three things to avoid: elaborate landscaping, installing hardwood flooring, and extensive smart technology features.
Elaborate Landscaping
Neat, low-maintenance landscaping is a sought-after feature of a rental home. The majority of renters want a tidy yard that is easy to take care of. Upgrading your rental property’s landscaping by including several stunning plants and trees or creating beautiful flower beds alongside a large, lush lawn area may seem like an excellent investment. Lastly, curb appeal contributes greatly to the perceived value of a rental home.
Yet, going beyond and creating a high-maintenance yard wastes money since it doesn’t add much to the property value or the renter’s contentment. Additionally, although your renter might initially be fascinated by the beautiful landscape, they will shortly find it too much work and neglect your property or opt to move out. In terms of landscaping a rental property, keeping things simple is preferable.
Hardwood Flooring
Wood flooring is popular among homeowners because of its inherent look and warmth. Yet, it requires a lot of upkeep and is at risk from damaged by water leaks or other accidents. In addition, you need to evaluate whether renters will adequately care for a hardwood floor.
Considering all these factors, it’s essential to keep in mind that while wood flooring may be an appropriate upgrade for residents, most renters are content with a low-maintenance look-alike alternative. It’s indispensable to bear in mind that natural hardwood is one of the more expensive upgrades, which means that you may not recover the installation cost, even if you opt to increase the rent.
Overdoing Smart Technology
To attract tenants and remain competitive in today’s rental market, property managers and landlords are willing to integrate advanced technology such as smart thermostats, keyless entry systems, and energy-saving devices.
Yet, property owners must assess the cost versus benefit of adding such enhancements. Even though these technologies offer convenience and efficacy, they are typically associated with a significant price tag that might not justify the return on investment.
For instance, smart home systems have upfront setup fees and regular maintenance, which can eventually reduce potential profits. Similarly, cutting-edge security features may deliver peace of mind but not significantly influence rental rates or tenant fulfillment.
What is regarded as revolutionary today may soon become old-fashioned the following day, resulting in expensive upgrades or substitutes. Additionally, the complex nature of these systems could lead to technical problems that require specialized expertise and resources to fix, raising the property’s overall operational costs. When opting to integrate new technology, it is important to evaluate all of these factors.
It’s essential to give equal importance to both profitability and tenant satisfaction. While fancy visual upgrades and complex technology installations may seem attractive, they are not necessarily the best investment. Rather, think about making cost-effective upgrades that generate actual benefits, such as essential maintenance and renovations that improve the property’s functionality and life span. By cautiously evaluating the cost compared to the benefit of each enhancement and picking those that generate the highest return on investment, you can ensure long-term success in the rental market.
Are you interested in maximizing your returns on investment properties in and around Vancouver? Real Property Management Vancouver is an ideal choice for you! We’re always here to assist you in reaching your goals – give us a call at 360-975-4683 or send us a message online.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
