When it comes to improving your investment properties, certain enhancements provide a good return on investment, while others fall short. Among the most frequent mistakes rental property owners can make is investing heavily in upgrades that do not add much value or fail to enhance the appeal of the rental home to prospective renters.
Understanding which upgrades to avoid helps you make smarter investment decisions about future property improvements. Generally, experts agree that the top upgrades to steer clear of include elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Neat, low-maintenance landscaping is often a preferred feature for a rental home. Most residents look for a yard that’s easy to handle. Upgrading your rental property’s landscaping by installing ornamental plants and trees, blooming flower beds, or a large, lush lawn may seem like a valuable addition. Certainly, curb appeal contributes to the perceived value of a rental home.
But turning the yard into a high-maintenance project generally doesn’t add much to the property value or improve renter’s satisfaction. Even if tenants initially love the beautiful landscaping, it might become too labor-intensive, causing them to neglect your property or even move out. When landscaping a rental property, the rule of thumb is: simple is better.
No need for expensive hardwood flooring
While wood flooring appeals to many homeowners because of its natural style and warmth, it requires a lot of upkeep and is prone to damage, particularly from water leaks and wear. There’s also uncertainty about whether tenants will adequately care for a hardwood floor.
Even though wood flooring may be a desirable upgrade, most renters are satisfied with a low-maintenance look-alike option. Keep in mind that natural hardwood is one of the more expensive upgrades, and it’s unlikely you’ll recover the installation cost, even with higher rent.
Keep smart tech installations to a minimum
In the current rental landscape, property managers and landlords may want to add advanced technology such as smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
However, property owners need to assess the cost versus benefit of implementing these features. While such technologies offer convenience and efficiency, they also come with a significant price tag, which can reduce your return on investment.
Most home systems involve initial setup, as well as ongoing maintenance costs. Even advanced security features might not significantly affect rental rates or improve tenant satisfaction. Since technologies can become outdated quickly, they often require costly upgrades. Complex systems can also create technical issues that need specialized expertise, increasing operational costs. These risks should be evaluated before you integrate new technology into your property.
Evaluate cost vs benefit before renovations
Balancing profitability and tenant satisfaction is key. While trendy, fancy cosmetic changes and complex technology installations may catch your eye, they may not be the best investment. Focus on cost-effective upgrades that provide real value, such as essential maintenance and improvements that improve the property’s functionality and longevity.
Want to get the most out of your investment properties in Yardley and the surrounding areas? You only need to look at Real Property Management Prosperity! Give us a call at 267-433-4200 or send us a message online to discuss how we can help you achieve your goals. We’re always available.
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