When focusing on improving your investment properties, some property improvements can deliver a substantial return on investment, while others prove lackluster. One of the common mistakes rental property owners can make is allocating large sums into upgrades that do not add much value or fail to enhance the appeal of the rental home to future tenants.
Discerning which upgrades to steer clear of can guide you toward smarter investment decisions for your rental property. Industry experts consistently highlight three upgrades to avoid: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Orderly, low-maintenance landscaping is a coveted feature for a rental home. Most renters prefer a pristine, easy-to-maintain yard. Upgrading your rental property’s landscaping with numerous plants and trees or designing intricate flower beds alongside a large, lush lawn may seem like a valuable addition. After all, curb appeal plays a major role in the perceived value of a rental home.
However, a high-maintenance yard wastes resources as it doesn’t add much to the property value or improve renter’s satisfaction. While tenants may initially be enchanted by beautiful landscaping, they might soon find it too cumbersome and neglect your property or opt to move out. When landscaping a rental property, simple is better.
No need for expensive hardwood flooring
Wood flooring is cherished by homeowners for its natural style and warmth. However, it requires a lot of upkeep and is vulnerable to damage from water leaks or other accidents. Property owners must also consider whether tenants will adequately care for a hardwood floor.
Given these challenges, it’s important to note that while wood flooring may be a desirable upgrade for some, most renters are content with a low-maintenance look-alike option. Natural hardwood is one of the more expensive upgrades, meaning you may not recover the installation cost, even if you increase the rent to offset costs.
Keep smart tech installations to a minimum
In today’s rental market, property managers and landlords may feel urged to incorporate advanced technology such as smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
However, property owners must thoroughly assess the cost versus benefit of these additions. While these technologies offer convenience and efficiency, their significant price tag often overshadows the return on investment. Smart home systems involve initial setup and ongoing maintenance costs that can reduce profitability and tenant satisfaction. Advanced security features may offer reassurance but typically don’t significantly affect rental rates or tenant satisfaction. Technologies viewed as cutting-edge today can quickly become outdated, necessitating costly upgrades. Moreover, technical issues that need specialized expertise may emerge further increasing operational costs when you integrate new technology into your property.
Evaluate cost vs benefit before renovations
Emphasizing profitability and tenant satisfaction is vital. While fancy cosmetic changes and complex technology installations may appear tempting, they’re not always the best investment. Instead, opt for cost-effective upgrades that provide genuine value, such as essential maintenance and improvements that improve the property’s functionality and longevity.
Looking to enhance your investment property returns in Tampa and nearby? Real Property Management Instant Equity (Tampa) is here to assist! Contact us at 813-445-4619 or connect with us online to maximize your property’s potential today!
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