With Goose Creek 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 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, 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. 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 other 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 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. 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.
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 actually have a negative effect on the rental property. Let’s say a house has a really luxurious kitchen but it also has dingy, dated bathrooms or worn carpeting. It would be safe to assume that any prospective tenant would take that as a red flag. They may look at the house and think that it is an unfinished project and not a complete rental home ready to be lived in. Even, particularly if the home is not located in an upscale area.
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 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. 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.
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, 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 Goose Creek property managers at Real Property Management Charleston can be of service. 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 843-900-4061 for more information.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.