With Amsterdam property owners wanting to have the advantage in a competitive rental market, they sometimes think that building a dream kitchen would do the trick; that it would attract higher-paying tenants. These tenants do want a kitchen that is well built but there is a difference between quality and luxury. They want good quality. High-end or luxury upgrades, however, rarely result in a higher rental rate. The exception to this is if your entire rental home has been upgraded in a similar fashion and is in a market that supports higher rent. But if it isn’t, then the better option 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. But, as is usually the case, expensive materials such as granite and hardwood are really difficult to maintain. The upkeep takes so much work and they still get damaged easily. A homeowner may look at that as a good trade-off for living in a beautiful kitchen but most tenants would not. 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 additional reasons why creating your dream kitchen is not the best project for your rental property. Tenants tend to go for rental homes that have been designed to reduce the amount of upkeep needed. They do still want quality appliances and updated features. But quality and luxury aren’t synonyms, and tenants are more likely to look at a high-end kitchen as more of a hassle than a bonus. Therefore, having a high-end kitchen alone does not justify charging more in rent. Your tenants may not be willing to pay a higher rate for that feature alone.
There are other matters to consider when you are planning to remodel your kitchen. One of these is if the new kitchen doesn’t match the quality of the rest of the property. Inconsistent upgrades actually have a negative effect on the rental property. When a home has a beautiful kitchen but has dingy, dated bathrooms or worn carpeting, it may raise some red flags for the prospective tenant. They may think that you don’t have a complete rental home, but that you just have an unfinished project that isn’t ready to be lived in. Upgrading one room in the house, especially when it’s not in an upscale area, does little to increase your property values.
As an alternative to spending big on a high-end kitchen, think about doing a few simple updates instead. 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. Worn cabinets can be given a whole new look just by having it painted or resurfaced. For a fraction of the cost, you can immediately bring a dated kitchen into the present. Don’t think that the little things have no effect. Even a new light fixture and drawer pulls can do a lot to add charm and give the room an updated feel. The added benefit to this is that you won’t have to worry about whether or not your tenant will be causing expensive damage to your expensive tile, stainless steel appliances, or granite countertops.
To summarize, if you don’t have a budget big enough to complete high-end upgrades with consistent style and quality throughout the whole investment property, you’d do better by going for quality mid-range improvements. Still, determining which upgrades to go for isn’t simple. You’ll need to find out which ones add value to your rental property and correspond to rent increases. This is where the professional Amsterdam property managers at Real Property Management Bozeman can lend a hand. 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 406-586-2226 for more information.
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