When improving your investment properties, it’s important to prioritize upgrades that generate a return on investment. Unfortunately, one of the most frequent mistakes rental property owners can make is investing in upgrades that do not add much value or improve the appeal of the rental home for prospective residents.
Understanding which upgrades to avoid will help you make smarter investment decisions as you consider property improvements. Experts in property management recommend steering clear of three upgrades in particular: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Clean, low-maintenance landscaping is a practical and attractive feature for a rental home. Renters generally prefer a manageable outdoor space. Upgrading your rental property’s landscaping with exotic plants and trees, colorful flowerbeds, and a large, lush lawn may feel like a valuable addition. Curb appeal is certainly tied to the value of a rental home.
But when the result is a high-maintenance yard, the benefit becomes questionable. These features don’t add much to the property value or renter’s satisfaction. Tenants may initially enjoy beautiful landscaping but may eventually neglect your property or decide to move out. When it comes to landscaping a rental property, simple is better.
No need for expensive hardwood flooring
Wood flooring is a favorite among homeowners thanks to its natural style and warmth. Still, it requires a lot of upkeep and is prone to damage from water leaks or wear and tear. Not all renters will adequately care for a hardwood floor either.
Although wood flooring may be a desirable upgrade in some cases, most renters are content with a low-maintenance look-alike option. natural hardwood is one of the more expensive upgrades, and you may not recover the installation cost—even if you increase the rent.
Keep smart tech installations to a minimum
In the effort to attract tenants and remain competitive, property managers and landlords often look to implement advanced technology such as smart thermostats, keyless entry systems, and energy-efficient appliances.
However, property owners should carefully assess the cost versus benefit. While these technologies bring convenience and efficiency, they carry a significant price tag that may not result in a strong return on investment.
Smart home systems demand initial setup and ongoing maintenance costs that impact your profits. Advanced security features might be seen as beneficial but rarely influence rental rates or tenant satisfaction. With technologies becoming outdated quickly, you could face costly upgrades. Technical issues may also require specialized expertise, increasing operational costs. Take care when deciding to integrate new technology into your property.
Evaluate cost vs benefit before renovations
Profitability and tenant satisfaction should guide your renovation choices. Fancy cosmetic changes and complex technology installations can be tempting, but they’re not always the best investment. Look toward cost-effective upgrades and essential maintenance—improvements that enhance the property’s functionality and longevity.
Interested in making the most of your investment property returns in Chesapeake and the surrounding area? Consider Real Property Management Hampton Roads as your top choice! Our team is available to assist you in achieving your targets. Feel free to contact us at 757-395-4274 or send us a message online.
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