Buying a property is a fantastic investment that can generate excellent returns to support your financial future. However, as with your private residence, rental properties need upgrades from time to time. The right updates help rentals stay competitive and attractive to quality renters!
How can real estate investors know which upgrades are necessary (and which are not)? The wrong updates can be costly and create maintenance headaches—without generating the returns you need to justify those costs. If you're considering renovations for your rental, think through the following things from a Salt Lake City property management perspective before scheduling a contractor!
Is It Cost-Effective?
Overspending on high-end updates doesn't often pay off for rental property owners. Investors must research costs for materials and labor, then stick to a budget when thinking through potential upgrades.
Most Salt Lake City renters don't want to pay more for a rental home with expensive countertops or flooring when they can save money on a quality rental home with fewer luxury features. If you choose granite or quartz countertops—but you can't get renters to pay the rent amount you need to justify that expense—your rental property stays empty, and you lose money!
However, choosing cost-effective upgrades doesn't mean looking for the lowest-cost option to generate more profit. Cheap materials and low-cost contractors can leave you with poor-quality "upgrades" that don't last and won't attract good residents.
Work with a property manager in Salt Lake City to find resources and workers that are "just right" for your budget with high potential to be exactly what renters want in a rental home!
Choose Durability and Longevity Before Style
The aesthetics of a property are crucial for attracting tenants and reducing vacancy rates. However, putting too much emphasis on stylish updates can leave you with aspects of a rental property that don't stand the test of time.
Thoughtful renovations shouldn't be too trendy. The latest paint colors or "hottest" interior designs might look great right now on HGTV or other home improvement shows, but many trends often become outdated within a few years.
Choose paint colors and styles that maintain a classic look for your property and will remain popular—no matter the latest home improvement trends. Quality, practicality, and functionality will help you retain more Salt Lake City residents than something flashy that becomes unpopular sooner rather than later.
Keep Maintenance In Mind
Rental property owners must also think of tenants when making upgrades to a property. Renters don't want to deal with hard-to-maintain aspects of a home, like complicated landscaping, specialty flooring or countertops, or too much smart home technology.
While some smart home features can attract more residents, be careful not to install so many technological features that it becomes difficult for renters to lock the house, use laundry machines or other appliances, or turn the lights off or on.
The easier your home is for residents to maintain while upholding their responsibilities in the lease, the more likely they are to stay for more than one lease term. Property management experts recommend that rental property upgrades enhance life for your residents and not become overwhelming for routine upkeep.
Updating the bathroom with deep grout can make it hard to clean. "Fragile flooring" materials like bamboo or cork require specialized cleaning and treatment products or methods to keep them in good shape. While deep group and cork floors might look nice, they can discourage renters from wanting to stay in your rental home.
Necessary Upgrades Enhance Salt Lake City Rental Properties
If it doesn't make your property better or more attractive to tenants, chances are, it's not a necessary upgrade! Choose flooring that looks nice, can hold up to pets and kids, and is easy to maintain. Most rental homes don't need granite countertops to attract quality residents. If you're thinking even bigger, like adding a room or a deck, work with a property management company to make sure any addition adds value to the property and is something potential renters will enjoy (and be willing to pay for).
Salt Lake Property Management Guides Rental Owners to Smart Upgrades!
When it's time to consider new floors, countertops, or bathroom fixtures, work with a property management company in Salt Lake City to guide toward smart updates that improve property values and make residents happy. As property investors and rental managers with plenty of local and industry experience, Reeder Asset Management has firsthand knowledge of the best upgrades to help investors generate more income! With our property management services, investors don't have to worry about overspending on upgrades that never pay off.
If you're thinking of a property update, reach out to us! We're happy to talk through what you have in mind, what tenants want most in a rental home, and how specific upgrades can impact your bottom line.
Learn more about protecting your investment properties and income! Get our free eBook, "Protecting Your Investment Property: A Guide."