There are numerous shrewd reasons to routinely update your Fruita single-family rental home. From higher tenant fulfillment to bigger rental rates, remodeling can help property owners realize their real estate investment goals. For all that, research has proven that not all property remodeling will have the preferred end result. Truth be told, some renovation projects can bring about a downturn in property values, furthermore deterring any interested tenants. Property owners can manage to keep their costs low and increase returns year after year by distinguishing which upgrades they need to steer clear of.
While industry experts can’t seem to agree which upgrades are ineffective, most of them see eye to eye that opting for high-end remodels pretty much aren’t worth the price. Such as, 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 just might dish out thousands on a whirlpool tub or other home renovations that a renter may never find a use for. Not only is the addition to tenant enjoyment and the worth of property insignificant, but you also will likely never recoup the cost of the remodel.
A swimming pool is often a troublesome home improvement. Property owners in warmer areas may want to install a pool to make their rental home more competitive. Unless the property is currently on the high-end, installing a pool does not result in a good ROI. In reality, above-ground pools can force property values to decline, in addition to being deemed as a big negative for certain 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 have a tendency to keep away from renting homes with high-end or high-maintenance landscaping. While gorgeous exteriors can make property values shoot up to some extent and add to 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 markedly restrict the range of possible applications and it just might make your rental home harder to lease. An expensive landscaping job could quickly deteriorate if it is not properly maintained, resulting in a total loss of your investment.
Before preparing for any upgrades, ensure that you assess your rental market thoroughly to make sure you are not updating your rental home above and beyond what the neighborhood can accommodate. An example of this is attaching an extra bedroom to usher your rental home in line with the other homes in the neighborhood is a shrewd upgrade, allowing for bigger property values and rental rates. But the high-priced makeover of a home in a humble location is more imaginable to give rise to the forfeiture of your investment.
To get a clear-cut idea of which property upgrades are worth their weight in gold, think about the value of a Real Property Management Now market assessment. We can evaluate your Fruita rental home, offer market comparisons, and make specific recommendations for improvements. We can be of service to property owners in order for them to maximize their earning potential with higher rent, steady growth of property values, and long-term tenants. If you have any questions or just want to talk with a team member, contact us online or by phone at 970-314-7123 and we would be happy to be of use to you today.
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