With the rental market being so competitive, Hyrum property owners sometimes believe that when they build a dream kitchen, it would attract higher-paying tenants. While these tenants do look at the kitchen and know that it is important, high-end or luxury upgrades rarely result in a higher rental rate. The exception to this rule is if the market you’re in can support higher rent. If this is where you are, you’ll need to upgrade your entire rental home as well. However, if you aren’t competing in this up-scale market, your best 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. However, in most cases, expensive materials such as granite and hardwood aren’t easy to look after. They get damaged easily and the upkeep requires a lot of work. While a homeowner may think the additional work is worth living in a beautiful kitchen, the tenant may not share the same sentiment. Tenants wouldn’t want to be responsible for maintaining that level of luxury. On top of that, these types of materials would increase your maintenance costs since they are more expensive to repair or replace and it may need to be done frequently.
There are more reasons why creating your dream kitchen is not the best project for your rental property. Tenants usually like it better when their rental home was designed to reduce the amount of upkeep required. They do still prefer quality appliances and updated features. But quality and luxury are two different things, and tenants tend to view a high-end kitchen as more of a hassle than a bonus. So, having a high-end kitchen alone does not warrant charging more in rent, and your tenants may not be willing to pay a higher rate for that feature alone.
There are other issues that would come about when you are planning to remodel your kitchen but don’t match its quality to the rest of the rental property. Inconsistent upgrades to your rental home could actually backfire. For example, a house has a really beautiful kitchen but it also has dingy, dated bathrooms or worn carpeting. A prospective tenant may see the house and think that the inconsistency is a red flag. They may think of it as an unfinished project instead of a complete rental home ready to be lived in. Unless located in an upscale area, upgrading one room in the house also does very little to increase your property values as well.
You don’t have to spend big on a high-end kitchen, instead, consider 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 paint or resurface a worn cabinet to give it a fresh new look. When you do this, you are instantly bringing a dated kitchen into the present for only a fraction of the cost. Do not underestimate the little things. Even a new light fixture and drawer pulls can add charm and make the room 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.
To sum it all up, if you don’t have the budget to do a high-end upgrade for all parts of your investment property, the better option is to do quality mid-range improvements. Still, it’s a bit difficult to know which upgrades will add value to your rental property and whether or not it will correspond to rent increases. This is where the professional Hyrum property managers at Real Property Management Cache Valley 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 435-753-5200 for more information.
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