With Radford 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. Tenants like these are in the market for a rental home with a quality kitchen— which is different from a luxury kitchen. Truth be told, high-end or luxury upgrades rarely result in a higher rental rate. The only way this would happen is if your rental home is in a market that supports higher rent and if your entire home has been upgraded as well. If it isn’t, then your best bet is 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, for the most part, expensive materials such as granite and hardwood aren’t easy to maintain. Taking care of it is a lot of work and it still gets easily damaged. Homeowners may think it’s a good deal— that the extra effort is worth living in a beautiful kitchen— but a tenant may not see it that way. Tenants may not want the additional responsibility of maintaining that level of luxury. Also, these materials tend to be expensive to repair or replace, which would increase your maintenance costs— especially since you’d need to do it more often seeing how fragile they are.
There are many other reasons why creating your dream kitchen isn’t the best project for your rental home. Tenants typically favor rental homes that were 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. So, having a high-end kitchen alone does not mean you can charge more in rent. In fact, many 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 would actually hurt 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 not view your rental home as complete. They may think it’s an unfinished project that isn’t 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 a worn cabinet a fresh new look by simply having it painted or resurfaced. By doing this, you quickly bring a dated kitchen into the present for only a fraction of the cost. The littlest things can make a difference. Simply placing in a new light fixture and drawer pulls can bring a lot of charm to a room and make it feel updated. What’s more, there is the added benefit of no longer having to worry about your expensive tile, stainless steel appliances, or granite countertops. You can rest easy and not have to wonder if your tenant is taking care of them properly.
Here’s the conclusion. If you don’t have the budget to complete high-end upgrades on all the rooms of your investment property, the smarter choice would be to stick to 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. This is what the professional Radford property managers at Real Property Management Insight can help you with. Our industry expertise and quality remodeling contractors can help you decide how to best improve your rental property to optimize your rental rates and increase your property values. Contact us or call us at 540-998-6917 for more information.
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