Renovations that Don’t Add a Great Deal to Rental Property
Upgrading your rental property is always worthwhile and will attract more tenants, increasing rental income. Unfortunately, not all improvements provide a good return on investment; some upgrades may cost too much money and take too long without adding much or any value at all to the property. Below are a few upgrades landlords need to be wary of when upgrading.
1. High-End Appliances
Although high-end appliances may look appealing, their costs are prohibitive for renters who might not use or appreciate them to their full capacity, rendering your investment ineffective and unnecessary. For best value and financial health when renting apartments and houses with less space. Look for durable mid range appliances that deliver maximum performance but won’t break your budget.
2. Expensive Light Fixtures
The addition of fancy light fixtures can add style and warmth, yet they rarely increase the value of a home. Instead, invest in functional yet beautiful fixtures at a much lower cost than expensive models.
3. Over-the-Top Landscaping
Curb appeal is of vital importance in rental properties; however, more complex landscaping features like water features or extensive gardens may not be beneficial investments for rental homes. Instead, focus on low-maintenance strategies for simple landscape features to improve their appearance without needing extensive upkeep and care.
4. Customized Features
While custom features such as unique wall finishes or built-in shelves may appeal to some tenants, others may find them less so and could increase costs associated with altering or removing these features, which in turn limits who they rent their apartment to.
5. Swimming Pools
While pools might seem appealing as amenities for landlords, they also present significant liability and maintenance expenses that must be managed. Tenants could see it more as an annoyance than an amenity, especially if responsible tenants must provide for its upkeep themselves.
6. Expensive Flooring
Flooring is an integral element of rental properties; however, investing in expensive materials like hardwood or marble might not yield as high a return as cost-effective options are easier to replace or maintain. When selecting new floor coverings for rental properties it should always be durable yet easy-care options like rubber tiles that offer good return.
7. Smart Home Technology
Smart home technologies may appeal to tenants with technical know-how, but their return may not justify the costs involved. Instead, invest in upgrades that add real value for tenants rather than extravagant smart home systems.
8. Latest Design Trends
Be wary of investing in design trends that will quickly become outdated; opt instead for timeless elements with wide appeal that are less likely to go out of date quickly.
When planning improvements for your rental property, investments must offer both high returns on investment as well as appeal to a broad spectrum of tenants. Avoid expensive, trendy, or too-personal upgrades as these may not add any real value over time.