When focusing on improving your investment properties, certain property improvements can yield a strong return on investment, while others fall short. One of the critical mistakes rental property owners can make is investing heavily in upgrades that do not add much value or fail to boost the appeal of the rental home for prospective tenants.
Understanding which upgrades to steer clear of can guide you toward smarter investment decisions for your rental property. Experts in the field 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
Well-kept, low-maintenance landscaping is a desirable feature for a rental home. Most tenants prefer a tidy, simple yard that’s easy to maintain. Upgrading your rental property’s landscaping with numerous plants and trees or designing intricate flower gardens next to a large, lush lawn might appear as a valuable addition. After all, curb appeal significantly influences the perceived value of a rental home.
Yet, a high-maintenance yard squanders resources because it doesn’t add much to the property value or enhance renter’s satisfaction. While tenants may initially be attracted to beautiful landscaping, they might soon find it overwhelming and 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 favored by homeowners for its natural style and warmth. However, it requires a lot of upkeep and is prone to damage from water leaks or other mishaps. Moreover, property owners must consider whether tenants will adequately care for a hardwood floor.
Given these challenges, it’s notable 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 expenses.
Keep smart tech installations to a minimum
In the current rental market, property managers and landlords might feel compelled 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 carefully assess the cost versus benefit of these additions. While such technologies offer convenience and efficiency, their significant price tag often undermines the return on investment. Smart home systems involve initial setup and ongoing maintenance costs that can erode profitability and tenant satisfaction. Advanced security features may provide reassurance but typically don’t significantly affect rental rates or tenant satisfaction. Technologies deemed cutting-edge today may soon become outdated, necessitating costly upgrades. Additionally, technical issues that need specialized expertise can arise, further increasing operational costs when you integrate new technology into your property.
Evaluate cost vs benefit before renovations
Prioritizing both profitability and tenant satisfaction is crucial. While fancy cosmetic changes and complex technology installations may seem appealing, they’re not always the best investment. Instead, focus on cost-effective upgrades that deliver tangible benefits, such as essential maintenance and improvements that improve the property’s functionality and longevity.
Looking to take full advantage of your investment property returns in Arlington and adjacent area? Real Property Management Meridian is the only place to look! We’re always here to support you in achieving your objectives – give us a call at 817-678-8787 or send us a message online.
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