There are so many good reasons to continually update your single-family rental home in Winston-Salem. From higher tenant gratification to hiked up rental rates, remodeling can assist property owners in achieving their real estate investment goals. Be that as it may, research has demonstrated that not all property modernizations will have the desired effect. In reality, some refurbishment projects can be the reason for property values to dip and on top of everything else, discourage possible tenants. Identifying which upgrades to steer clear of can assist property owners in keeping their costs low and increase returns year after year.
While industry experts have varying ideas regarding which upgrades are the least beneficial, most of them concur that picking high-end remodels really isn’t worth the high cost. An example of this could be that 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 can splurge on a whirlpool tub or other interior updates that a renter may never make use of. Not only will you most likely never recoup the cost of the remodel, but the rise in property market price and tenant happiness are also minuscule.
An additional troublesome modernization is a swimming pool. In warmer parts of the world, property owners may decide to build a pool so that their rental home is more competitive. But unless the property is on the high-end, building a pool does not give a good ROI. As a matter of fact, above-ground pools can push property values to plummet, not to mention be regarded as a big negative for some 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 are inclined to steer clear of renting homes with high-end or large-scale landscaping. While decorative exteriors can enlarge property values to some extent and heighten 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 make your rental home harder to rent because it considerably reduces the scope of potential applications. An expensive landscaping job could quickly deteriorate if it is not properly maintained, resulting in a total loss of your investment.
Before mapping out any upgrades, don’t forget to painstakingly examine your rental market to confirm you are not renovating your rental home more than what the neighborhood can support. For instance, constructing an extra bedroom to move your rental home in line with the other homes in the neighborhood might be a good idea, allowing for higher property values and rental rates. But the exorbitant makeover of a home in a simple region is more likely to culminate in a reduction of your investment.
To get a crystal clear idea of which property modernizations are worth the cost, assess the value of a Real Property Management of the Triad market assessment. We can evaluate your Winston-Salem rental home, offer market comparisons, and make specific recommendations for improvements. This is how we can aid property owners to maximize their earning potential with higher rent, steady growth of property values, and long-term tenants. If you want to talk with a team member or just have any questions, contact us online or by phone at 336-355-6677 or 336-777-7444 and we would be happy to assist you today.
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