With Yorktown 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. 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 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. 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 are usually more attracted to rental homes that have been built to reduce the amount of upkeep required. They still want to have quality appliances and updated features. But you can have quality without being luxurious, and tenants know this. That’s why many tenants 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.
It’s going to be problematic if you’re planning to remodel your kitchen where its quality would no longer match the rest of the rental property. Inconsistent upgrades would actually hurt 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 of it as an unfinished project instead of a complete rental home 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. 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. 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.
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 know which upgrades will add value and whether or not it would correspond to rent increases. This is where the professional Yorktown property managers at Real Property Management Dominion can help. Our industry expertise and quality remodeling contractors can work with you to find out the best ways to develop your rental property to optimize your rental rates and increase your property values. Contact us or call us at 757-395-4274 for more information.
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