With the rental market being so competitive, Miami 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 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 , appliances, countertops, and flooring. However, the truth is that expensive materials such as granite and hardwood are usually difficult to maintain. They are easily damaged and require so much work to clean properly. 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 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 many 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 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. Therefore, having a high-end kitchen does not necessarily mean you can charge more rent, and 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 actually have a negative effect on the rental property. 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. as well unless the home is in an upscale area.
There is no need to do some big spending on a high-end kitchen. Instead, go for 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 a worn cabinet a fresh new look by simply having it painted or resurfaced. By doing this, you quickly bring a dated kitchen into the present for only a fraction of the cost. Small things can make a big difference. So, by adding a new light fixture and drawer pulls, you are already adding to the charm and making the room 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.
Here’s the bottom line. If you aren’t willing to spend for high-end upgrades for all the areas of your investment property, then the smarter choice would be to use your budget for quality mid-range improvements. Still, it’s not really easy to know which upgrades will add value and correspond to rent increases and which upgrades don’t. This is where the professional Miami property managers at Real Property Management Asset Solutions can lend a hand. 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 954-889-5627 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.