Home Upgrades: Are They Worth It?
A common question many property owners have is what upgrades or improvements should be made the property that are the least costly but provide the most return. A property is an investment, and just like any investment, the return on income trumps all else. The right upgrades will help maximize rent and guarantee finding high quality tenants that will be quick to rent them out to. Meanwhile, the wrong upgrades can cost the owner without returning any value.
|What Are “Smart Upgrades”?“Smart Upgrades” are simple things that make the living experience for the tenant easier, which, conveniently, doesn’t carry an expensive price tag along with it.The following are some simple but very “Smart Upgrades”:
An automatic garage door opener is a big difference-maker for tenants. If your property doesn’t already have one installed, look into the pros and cons of installing one. It doesn’t create too much of a dent in your wallet and is worth every penny because it is an eye-catching selling point when showing your property to future buyers or renters.
Inside the house, stick to neutral colors for the interior. For the walls, colors like a light brown, taupe or soft orange, compared to the typical white, not only naturally open up the room, but also make the room more inviting and comfortable for the tenant. Your child might want a room to be blue, pink, the ceiling to be jet black or one wall to be covered in paintings of underwater creatures, but you don’t know who your potential tenants are or who will preoccupy the room. The ultimate key is to have the property appeal to everyone.
|For the floors, if you plan on changing them, upgrading to tile is the way to go. In the long run, you won’t have to replace the tile as often as you’d need to replace carpet. With the short term benefits being that tile is cleaner, healthier while carrying less allergens, it keeps the house cooler, and are easier to take care of compared to carpet.A simple but wonderful upgrade is changing the outside landscape to something low maintenance. Especially in this Arizona climate, changing grass to something more desert natural is a great idea, not only economically but ecologically. With materials such as patio pavers, pressed stones, mulch and other cheap, and easy-to-use materials, this will extend the wonderful desert ambiance. This upgrade will not only look amazing, but it won’t intimidate the tenant out of fear of not being able to keep up and manage it.Terrible UpgradesThese upgrades will not only cost you decent money, but will also not show you the results that you want.Wallpaper is a no-no. The key is appeal. Tastes don’t always match so your best option is neutral (light brown, avoid white) walls. As like carpet, It’s also harder to maintain. The wallpaper will peel and the long term effect of replacing them every few years just isn’t worth it.An overly landscaped yard. Simply not a good idea for a rental property. As stated, it will intimidate the tenants and they won’t be able to maintain it the way you expect them to. With the money invested in that, you could just keep it simple; easy to manage yet beautiful and nice.
Keep your thoughts in the items you are investing in and the neighborhood. Don’t invest in items such as custom drapes, blinds, and other extensive window coverings because not only is the upgrade on the expensive side, but they have a chance of being damaged. This applies to overly complex upgrades such as stainless steel appliances for rental properties. They are a great look, but the tenants simply won’t be willing to pay extra for those updates which will render that investment useless.