There are plenty of smart reasons to regularly update your single-family rental home in Greenwood. From increased rental rates to higher tenant enjoyment, remodeling can aid property owners in reaching their real estate investment goals. Nonetheless, research has corroborated that not all property renovations will have the sought-after outcome. As a matter of fact, some property upgrading projects can actually make property values decline, as well as dissuade potential tenants. Understanding which upgrades to keep away from can aid property owners by keeping their costs low and increase returns year after year.
While industry experts have conflicting viewpoints on which upgrades are not helpful, most are of the same opinion that only going for high-end remodels just isn’t worth the money. For instance, a luxury bathroom might seem like a big draw for long-term renters, but that bathroom typically isn’t enough to justify a significant increase in rent. A property owner could pay out thousands of dollars on a whirlpool tub or other modernizations that a renter may never take advantage of. You will likely never recoup the expense of the remodel and the upsurge in the worth of the property and tenant satisfaction are negligible.
One more difficult upgrade to deal with is a swimming pool. In warmer areas of the world, property owners may choose to construct a pool in order to make their rental home more competitive with other rental homes in the area. But unless the property is at the present time on the high-end, erecting a pool does not provide a good ROI. In reality, above-ground pools can actually cause property values to decrease, plus it can be considered as a big negative for several renters. Many tenants simply don’t want the hassle and expense of a pool, which means that for the most part, a swimming pool won’t help you attract or retain tenants, either.
Tenants also prefer to refrain from renting homes with high-end or expansive landscaping. While lovely exteriors can grow property values to some extent and build up curb appeal, many renters will see high-end landscaping as a negative, requiring far more time and effort than they are willing to give or increased costs for professional upkeep. This can remarkably decrease the pool of prospective applications, perhaps even making your rental home harder to rent out. An expensive landscaping job could quickly deteriorate if it is not properly maintained, resulting in a total loss of your investment.
Before designing any upgrades, remember to study your rental market meticulously to make certain you are not modernizing your rental home greater than what the neighborhood can carry. Such as, connecting an extra bedroom to get your rental home in line with the other homes in the neighborhood may be a wise decision as this will allow for bigger rental rates and property values. But the overpriced makeover of a home in an ordinary neighborhood is more likely to end in a depletion of your investment.
To get a straightforward idea of which property restorations are worth the expense, consider the value of a Real Property Management Indianapolis Edge market assessment. We can evaluate your Greenwood rental home, offer market comparisons, and make specific recommendations for improvements. This way we can assist property owners to maximize their earning potential with higher rent, a steady growth of property values, and long-term tenants. If you want to speak with a team member or have any questions, contact us online or by phone at 317-420-8500 and we would be happy to aid you today.
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