Some property owners assume that any upgrade is a good investment. However, this is not always the case. It’s a smart move to do some research any time you are thinking of making a change to your rental property so you aren’t spending a ton of money for very little actual return. (Also, check with your rental property management company to make sure the change is approved.)
The following are a few upgrades that may seem like a good idea, but won’t actually bring you much return on your investment.
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Don’t use your own personal tastes as the reason for a design change or upgrade, because your idea of a great, custom design may not always fit that of your renter’s. The only time this would be worth it is if you are possibly planning to live on the property for many years. Otherwise, avoid any design upgrades that are too custom or personalized.
Pools are a lot of work. Although sometimes they can be a good investment, it’s hard to be sure. For one, a lot of potential renters won’t want to keep up with the maintenance required of a pool. And let’s not forget the extra expenses involved. In addition, it’s also a potential hazard for those with children or pets.
If you’re really considering a pool, think about the decision long and hard first and do some research into your local market to gauge the level of desire for one.
High Luxury Upgrades
Make sure your rental remains affordable in the context of your neighborhood. Too high-grade of a change could end up alienating your property or hinting at discrimination against certain types of renters, which makes it harder to rent out. Simply put, most of those interested in the community might not be able to afford it. And those who can afford the cost will likely be looking for a more high-scale neighborhood.
Before making any costly upgrades, always consider your target market, the neighborhood of your rental property, and the longevity of the change. Nice is one thing, but you don’t want to go too much over-the-top.