With Locust Grove property owners wanting to get ahead in a competitive rental market, some of them think that building a dream kitchen would attract higher-paying tenants. While it is true that good tenants want a nice kitchen in a rental home, high-end or luxury upgrades rarely result in a higher rental rate. The only way this may work is if your rental home is in a market that will support higher rent. However, if this is the case, then you’d need to upgrade the entire home to be luxurious. Otherwise, it would be better to create a kitchen that features less expensive and more durable elements.
Homeowners often dream of upgrading their kitchens with high-end cabinets, appliances, countertops, and flooring. However, the truth is that expensive materials such as granite and hardwood are usually difficult to maintain. They are easily damaged and require so much work to clean properly. While some homeowners may find living in a beautiful kitchen is worth all that work, tenants may not feel the same way. Tenants may not appreciate having to bear the responsibility of painting that level of luxury. In addition to that, these materials increase your maintenance costs since they are expensive to repair or replace and you may need to do it often— especially with how easy it is to damage.
There are many other reasons why creating your dream kitchen isn’t the best project for your rental home. Tenants often prefer rental homes designed to reduce the amount of upkeep. They do want quality appliances and updated features in their homes. But quality does not necessarily mean luxury, and tenants know the difference. That’s why most tenants view high-end kitchens as more of a hassle than a bonus. Therefore, having a high-end kitchen does not necessarily mean you can charge more rent, and your tenants may not be willing to pay a higher rate for that feature alone.
There are other difficulties that may arise if the kitchen you are planning to remodel does not match the quality of the rest of the rental property. Inconsistent upgrades actually have a negative effect on the rental property. If your home has a beautiful kitchen but the bathrooms are dingy and dated, and the carpeting is worn, the prospective tenant may view that as a red flag. They may regard the rental home as an unfinished project instead of a complete home ready to be lived in. Even upgrading one room in the house also does little to increase your property values, particularly if the home is not located in an upscale area.
Instead of spending being on a high-end kitchen, it would be better to opt for a few simple updates. An inexpensive and durable countertop and floor, a matching set of new appliances, and some new fixtures can make an older kitchen feel fresh and modern. You can give worn cabinets a whole new look by having it painted or resurfaced. This will instantly bring a dated kitchen into the present for a fraction of the cost. Remember that small things make a difference. A new light fixture and drawer pulls can really add a lot of charm to a room and make it feel updated. The additional benefit to this is peace-of-mind since you no longer have to worry about your tenant damaging your expensive tile, stainless steel appliances, or granite countertops.
Here’s the bottom line. If you aren’t willing to spend for high-end upgrades for all the areas of your investment property, then the smarter choice would be to use your budget for quality mid-range improvements. Still, it’s not easy to know which upgrades will add value and whether or not it would correspond to rent increases. Why not allow the professional Locust Grove property managers at Real Property Management Anchor to help? You can benefit from our industry expertise and our quality remodeling contractors. They can help you find out the best ways to upgrade your rental property to optimize your rental rates and increase your property values. Contact us or call us at 770-506-1237 for more information.
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