If there could be one universal truth to all rental properties everywhere, it is that they will eventually show the signs of wear and tear. Considering the number of years that are always being used, they will need to be updated here and there naturally. Worn out looking interiors and out of date appliances does not sound appealing to anybody, this will cause your properties to lose value, decrease in general appeal, and may even leave you no choice but to lower the rent to draw in new residents.
As you do your part to keep your property value at a stable rate and earn a reasonable income via rent every month, it is important to choose when to update your Nashville rental homes. As the general practice, every couple of years is best when making the basic updates like replacing carpets, repainting walls, updating appliances, etc. The more extensive upgrades though will take more than just a simple yes or no question. While adding granite countertops, two-tone paint, or hardwood flooring might seem like the best way to attract better residents and add worth and appeal to your property, and you also need to ask yourself if they’re worth the cost.
Just like any other business decisions, upgrading your rental property has both pros and cons to doing so. Carefully studying the benefits and probable problems can help make your choice of whether or not to upgrade a much simpler one.
Renters are typically looking for rental homes with features and amenities that align with their style and preferred lifestyle. To attract these potential residents, adding modern kitchen appliances, bathroom fixtures, and other features to your Nashville rental home with upgraded may be necessary.
Based on your market, after these renovations are complete, you should also be able to raise the rent on an upgraded rental home. Potential residents understand that they will pay more for quality and are often willing to do so. Residents attracted to upgraded homes are more likely to take better care of them, enhancing the long-term profitability of your rental properties.
As a bonus, upgrades using quality materials can increase the overall value and extend the life of your rental properties. Higher quality materials tend to last longer, offering long-lasting value and return on your investment.
Upgrades are all about value. It does not hurt to be extra cautious when deciding to invest considerable amounts of money to any renovations. There is still a possibility that you may not be able to recover the cost that you spent and because upgrades will require cash up front, you’ll need to study your budget and be confident you have sufficient cash flow to cover the cost of home changes while anticipating for the inevitable return.
One more potential downside to upgrading your rental property is pricing yourself out of your market. If you want to upgrade to hike your rent, make sure that you have done your analysis. Look at similar properties in your area to conclude whether your price point after upgrading is too high.
Finally, it’s important to understand that not all upgrades will result in an upsurge of the value or request for your Nashville property. Taking the time to figure out what to upgrade and what to leave as-is can help you avoid this costly oversight.
Unless you are assured that an old-fashioned-style rental house is what budding residents are looking for, having a plan to upgrade your rental homes may be part of a smart strategy to keep your rentals viable.