With the nature of the rental market being competitive, some Plano property owners want to gain the advantage. Some of them think that if they build a dream kitchen, they would attract higher-paying tenants. Good tenants do inspect the kitchen and want it to be high-quality, but there is a difference between high-quality and luxury. The truth is, 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. But the general truth is that expensive materials such as granite and hardwood are notoriously difficult to look after. They get damaged easily and often require a lot of work to maintain properly. While a homeowner may really want to live in a beautiful kitchen and they feel that the extra effort is worth it, a tenant may not feel the same way. Tenants may not be in favor of having to shoulder the responsibility of maintaining that level of luxury. In addition, these materials also cost much to repair or replace, increasing your maintenance costs. This really isn’t a good option for a rental home.
There are other reasons why creating your dream kitchen is not the best project for your rental property. Tenants often prefer rental homes designed to reduce the amount of upkeep. They still like quality appliances and updated features better. But quality and luxury aren’t the same things, and tenants are aware of this. This is why they look at a high-end kitchen as more of a hassle than a bonus. So, even though it may seem that having a high-end kitchen will let you charge more rent, your tenants may not be willing to pay a higher rate for that feature alone.
There would be more problems if the kitchen you’re planning to remodel doesn’t match the quality of the rest of the rental property. Inconsistent upgrades would actually put the rental property at a disadvantage. A home with a luxurious kitchen but with dingy, dated bathrooms and worn carpeting may be a cause for concern to a prospective tenant. They may look at these inconsistencies as red flags. They may regard the rental home as an unfinished project instead of a complete home ready to be lived in. Upgrading one room in the house, particularly if it isn’t located in an upscale area, does little to increase your property values.
You don’t need to spend big on a high-end kitchen. Instead, think about doing 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. An added bonus is the peace of mind you get because you no longer have to worry about whether your tenant will damage your expensive tile, stainless steel appliances, or granite countertops.
In the end, if you aren’t willing to spend for a complete high-end upgrade of all the areas of your investment property, then you would be better off using your budget to make quality mid-range improvements. Still, it’s not easy to figure out which upgrades add value to your rental property— which corresponds to rent increases. Why not allow the professional Plano property managers at Real Property Management Legend to help? Our quality remodeling contractors can assist you. With their industry expertise, they can help you determine what the best course of action will be in improving your rental property to optimize your rental rates and increase your property values. Contact us or call us at 214-227-2404 for more information.
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