Because rental properties will eventually start to age and start looking ragged due to continuous use, they need to be updated. Worn interiors and outdated furnishings can cause your investment properties to depreciate in value and will probably give you no choice but to lower your rent just to attract new residents.
The most proven strategy to keep the value of your property (and your rent) high, is to update your Washington Corridor rental homes every now and then. Do replace your carpets every once in a while, maybe every few years, repaint walls, replace appliances for new models, and other features updated. While basic updates are understood to be a necessary upgrade, the question is more on those upgrades beyond the basics. Granite countertops, two-tone paint, or higher quality flooring definitely seem like the best way to lure good residents while adding value to your property, but how much is too much? And is the update worth the cost?
In relation to upgrading your rental property, there are the usual pros and cons that need to be considered prior to doing so. Evaluating the advantages and potential drawbacks can help make your decision of whether or not or not to upgrade a much less complicated one.
The Pros
Renters tend to gravitate towards those rental homes with features and amenities that fit into what their lifestyle and personal preferences. They are not at all inclined to rent a home with old or worn-out interiors. These potential renters can be attracted into your rental home when you raise the quality to your Washington Corridor property with upgraded kitchens, fixtures and other different features necessary.
Primarily based on your market of choice, you should also be able to raise the rent on an upgraded rental home. Potential residents have fully understood that in order for them to get quality homes, then they will have to pay more which most of them are often willing to do so. These residents that are attracted to upgraded homes are more likely to take better care of them, which in turn would enhance the long-term profitability of your rental properties.
In addition, upgrades using quality materials can increase the value and extend the life of your rental properties. Higher quality materials tend to last longer, offering long-lasting value for your investment.
The Cons
Upgrades are all about value. You do not want to spend too much on an upgrade you are unsure of otherwise you won’t be able to recover the cost. Upgrades will require cash to be spent up front, so you’ll need to have enough cash flow to cover the cost while waiting for the return on your investment. The return won’t be instant so you have to have the financial capability to withstand the waiting process.
Another potential downside to upgrading your rental property is pricing yourself out of your market. If you want to upgrade in order to raise your rent, you have to take notice of how your competitors are pricing their properties too. You do not want to be priced too high that would turn off potential renters or make yourself to be the most expensive one as chances are potential residents will survey the rest of those offering rental homes too.
Lastly, do not forget to remember that not all upgrades will increase the value or the demand for your Washington Corridor property. Taking the time to figure out what to upgrade and what to leave as-is can help you avoid this costly mistake.
In Conclusion
Unless you are confident that a retro-style rental house is what potential residents are looking for, having a plan to upgrade your rental homes may be part of a smart strategy to keep your rentals competitive.
For more information about the services offered by Real Property Management Heritage, please contact us online or give us a call directly at 248-254-3152.
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