Comparable Properties
One of the most significant factors to think about when deciding on a kind of siding for your rental home is what other homes in the neighborhood look like. Probably the biggest reason vinyl siding is such a common choice for home exteriors is its cost. Compared with other types of materials, vinyl siding is one of the most cost-efficient. It is also less difficult to install, which can significantly reduce those costs as well. On the subject of budget-friendly options, vinyl is the clear frontrunner for rental home exteriors.
On the other hand, if the other homes in your local rental market all have stucco, brick, or other exterior materials, using siding could hurt you financially. This occurs because if your rental property seems to be more inexpensive than the houses around it, renters might be concerned that the Haslet property manager is cutting corners and may need to perform better work of keeping up with property maintenance and repairs. Plus, putting siding when comparable properties do not may end up causing your property’s value to decrease. Therefore, before making any vinyl siding judgments, examine similar properties in your rental market first.
Cost Benefits
If vinyl siding is widely used in your rental market, there are several big benefits to incorporating the same on your property. In addition to being affordable, vinyl siding is versatile and has long-lasting durability. Vinyl siding is available in numerous different styles and colors, all of which are waterproof and fade-resistant. That guarantees that once the siding is installed, it will survive for years before it starts to show much wear. Vinyl siding is easy to clean with a pressure washer and does not retain or absorb moisture. So for rental properties in humid climates, vinyl siding might be the less expensive strategy that you need to keep your rental home’s curb appeal going strong.
Drawbacks to Siding
Unfortunately, there are a few drawbacks to vinyl siding. Perhaps one of the primary reasons you might be hesitant not to install vinyl siding on a rental house, even if other houses in your market have vinyl siding, is because while it is durable, it can be easily dented and scratched. If you have trees or shrubs next to your rental property’s exterior walls, those branches could inflict permanent damage to the vinyl siding. Tenants are not typically the most effective at keeping plants well-trimmed, so before installing vinyl siding, it is important to think about the overgrown trees.
Another key consideration is whether and how vinyl siding fits into your tax planning. According to the IRS, vinyl siding is an improvement, not a repair. This indicates that you will need to depreciate the cost of the siding over several years rather than be able to deduct the entire expense in the year of purchase. Even though vinyl siding is a low-cost option, it is not exactly cheap and will entail a large investment of cash to complete. Calculating how much of the cost you can carry as a multi-year tax deduction can assist you in making an informed decision about whether vinyl siding is suitable for your rental properties.
Lastly, it is up to you to decide whether vinyl siding is the right approach for your rental homes. Once you do, however, then the real procedure of selecting a competent vendor begins. All this analysis and research can eat up a considerable amount of time you could spend on more profitable investing activities instead.
So, consider the advantages of hiring Real Property Management Meridian. We can advise which exterior siding options work best for your rental properties. We recommend reliable vendors with proven track records and professionals who will do the job right and at a fair price. Contact us online or call today to get more information about our services!
Originally published on October 18, 2019.