As an investor looking to grow your long-term wealth through real estate, you've probably watched at least one house-flipping show at some point on HGTV.
We've all seen them: the cameras swoop in on a "diamond in the rough" just waiting for the right overhaul. $60,000 later, and the property has increased in value by a whopping $120,000! Unfortunately, shows like this don't give investors the whole picture.
What do we mean by that? Well, you might be wondering if some rehab on your Frisco rentals is worth the expense. A few glitzy updates here and some costly upgrades there, and you might think you'll be pulling in renters left and right! Not so fast: as the experts in Frisco property management, we're here to save you from a costly mistake! While it's true that renting out a luxury property in Frisco might draw renters, the kind of upgrades you select during your property's facelift is actually more important than what you spend.
When you spend big on the wrong upgrades, there's no guarantee that you'll actually draw in prospective tenants to your beautiful rental properties. When you're trying to expand your portfolio of holdings, this can be an expensive mistake that can set you back on achieving your financial goals. You might even be surprised to know that some of the best upgrades you can make to your Frisco properties aren't even the most expensive!
In today's blog post, we'll dive into the question of too much rehab—and how this can affect your portfolio.
When Luxury Doesn't Equal Love
We mentioned before how the wrong upgrades when putting your properties through renovations can actually be detrimental to your financial future—but why is that? The answer lies in what your renters want from a rental home.
When it comes to our homes, we can sometimes get blinded by personal preferences. If your tastes happen to lie somewhere between New York City and San Jose, you can quickly see why that might start to get problematic when attracting renters in Frisco! You need to approach your rental property rehab from the perspective of your potential residents.
As an expert in Frisco property management, we know our community: most renters are looking for a mix of affordability and quality when it comes to their rental home. Before you spring for any of these luxury upgrades, you should consider if it's really what your future residents are looking for.
Diving into a little market research and investigating your return on investment will give you better insight into which upgrades are worth moving forward on.
Your Return on Investment Is Calling!
So you know that when it comes to renovations, you should be approaching from the perspective of what your tenants are seeking—but what exactly are they seeking? A deep dive into what's hot in your neighborhood among the competition is a good way to get an idea of whether or not your amenities will be valuable add-ons or expensive extras that outprice your units out of great tenants.
If the Frisco market is spelling out trouble in paradise for your planned upgrades, take it from Frisco property management: you could be walking into a lemon that will tank your ROI! The updates you choose should be directly influenced by the numbers. With the right math behind your purchases, you'll make back your investment through sustainable rent increases and satisfied renters!
That said, sometimes the best upgrades are the most affordable.
Affordable Edits That Keep Your Property Competitive
If this part seems too good to be true, it's not! As a Frisco property management company, we're keenly aware of what renters are looking for in their rental home. Here are some profit-boosting picks that won't break the bank—but will keep your residents wanting to renew each year.
- Timely, professional maintenance: If you don't think this is an upgrade, then you're missing out on a huge opportunity for satisfied tenants! Instead of fixing your property, sometimes a fix in your process can make all the difference. Poor maintenance response times and shoddy repairs are a top tenant complaint, so staying on top of your maintenance can be a huge boost to your bottom line.
- Smart home features: USB-friendly wall outlets are popping up everywhere! If you've ever watched your family fight over an outlet or an extension cord, then you can quickly see how having outlets that fit all devices is an affordable upgrade with big appeal in the smart home era. Placing these updates in high-traffic areas will ensure you don't need many to make a big impact.
- Paint, paint, and paint again: It's easy to make a property look like new with a fresh coat of paint. The appeal of clean walls in neutral tones cannot be overstated. Plus, if you're crafty, you can refresh other elements of your Frisco rental properties with paint as well!
Keep in mind; this is just a fraction of the potential upgrades that are currently hot in the Frisco market. If you want more insight before going big, it's time to get in touch with Frisco property management!
Property Management Works Hard—so You Don't Have To!
Are you second-guessing that copper sink? You can always turn to a property manager to help you run the numbers on your potential upgrades! When you work with a property management partner to keep your Frisco rental competitive, you free up your time to get back to doing what got you into investing: growing your portfolio!
At RentHub Property Management, our experience in property management speaks for itself! Let us crunch the numbers on which upgrades might be right for your rental properties, so you can get back into picking the next property that's perfect for you. It's easy to start when you download our FREE guide to real estate investing! It's full of useful tips for investors looking to grow their holdings in Frisco.
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