When working on improving your investment properties, certain property improvements can provide a solid return on investment, while others underperform. One of the major mistakes rental property owners can make is dedicating large budgets upgrades that do not add much value or fail to enhance the appeal of the rental home for future tenants.
Knowing which upgrades to steer clear of can help you make smarter investment decisions for your rental property. Experts frequently cite three upgrades to avoid: elaborate landscaping, the installation of hardwood flooring, and extensive smart technology features.
Don’t waste money on elaborate landscaping
Well-maintained, low-maintenance landscaping is a valued feature for a rental home. Most tenants want a neat, hassle-free yard that’s easy to manage. Upgrading your rental property’s landscaping with countless plants and trees or creating detailed garden beds next to a large, lush lawn may appear as a valuable addition. After all, curb appeal greatly shapes the perceived value of a rental home.
However, a high-maintenance yard squanders money since it doesn’t add much to the property value or elevate renter’s satisfaction. Though tenants might initially be charmed by beautiful landscaping, they could soon find it too taxing 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 treasured by homeowners for its natural style and warmth. Yet, it demands extensive upkeep and is prone to damage from water leaks or other mishaps. Property owners must also determine whether tenants will adequately care for a hardwood floor.
With these factors in mind, it’s worth noting 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, so you may no recover the installation cost, even if you increase the rent to balance expenses.
Keep smart tech installations to a minimum
In today’s rental environment, property managers and landlords may feel compelled to integrate advanced technology like smart thermostats, keyless entry systems, and energy-efficient appliances to attract tenants and remain competitive.
Still, property owners must assess the cost versus benefit of these enhancements. While these technologies offer convenience and efficiency, their significant price tag often diminishes 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 offer reassurance but typically don’t significantly affect rental rates or tenant satisfaction. Technologies seen as cutting-edge today can quickly become outdated, requiring costly upgrades. Moreover, technical issues that need specialized expertise may occur, further increasing operational costs when you integrate new technology into your property.
Evaluate cost vs benefit before renovations
Focusing on profitability and tenant satisfaction is essential. While fancy cosmetic changes and complex technology installations may seem tempting, they’re not always the best investment. Instead, choose cost-effective upgrades that deliver real value, such as essential maintenance and improvements that improve the property’s functionality and longevity.
Seeking to capitalize on your investment property returns in Emeryville and nearby? You can find everything you need at Real Property Management Pacific! We’re looking forward to assisting you in achieving your targets. Don’t hesitate to call us at 510-900-4544 or send us a message online.
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