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Top 3 Rental Property Upgrades That May Not Be Worth the Money

Rental property with an elaborately landscaped backyard oasis.
When striving to improve your investment properties, some property improvements can offer a robust return on investment, while others disappoint. One of the critical mistakes rental property owners can make is pouring significant resources into upgrades that do not add much value or fail to elevate the appeal of the rental home for future renters.

Discerning which upgrades to steer clear of can pave the way for smarter investment decisions for your rental property. Experts in the field 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

Clean, low-maintenance landscaping is a valued feature for a rental home. Most tenants desire a neat, low-effort yard that’s simple to maintain. Upgrading your rental property’s landscaping with abundant plants and trees or designing intricate flower beds next to a large, lush lawn may appear as a valuable addition. After all, curb appeal significantly shapes the perceived value of a rental home.

Yet, a high-maintenance yard squanders funds since it doesn’t add much to the property value or improve renter’s satisfaction. Although tenants might initially be captivated by beautiful landscaping, they could soon find it too demanding 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 cherished by homeowners for its natural style and warmth. However, it demands extensive upkeep and is susceptible to damage from water leaks or other accidents. Property owners must also assess 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, so you may not recover the installation cost, even if you raise the rent to cover expenses.

Keep smart tech installations to a minimum

In today’s rental market, property managers and landlords may feel urged 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 thoroughly assess the cost versus benefit of these additions. While these technologies offer convenience and efficiency, their significant price tag often overshadows the return on investment. Smart home systems involve initial setup and ongoing maintenance costs that can reduce profitability and tenant satisfaction. Advanced security features may offer reassurance but typically don’t significantly affect rental rates or tenant satisfaction. Technologies viewed as cutting-edge today can quickly become outdated, necessitating costly upgrades. Moreover, technical issues that need specialized expertise may emerge, further increasing operational costs when you integrate new technology into your property.

Evaluate cost vs benefit before renovations

Emphasizing profitability and tenant satisfaction is vital. While fancy cosmetic changes and complex technology installations may appear tempting, they’re not always the best investment. Instead, opt for cost-effective upgrades that provide genuine value, such as essential maintenance and improvements that improve the property’s functionality and longevity.

Keen on maximizing your investment property returns in Clarksville and the neighboring area? Think about engaging with Real Property Management Renowned! Our team is available to help you reach your targets. Feel free to contact us at 410-442-6589 or send us a message online.

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