In a competitive rental market, some Bangor property owners would try to gain an advantage. A number of them think that building a dream kitchen will help attract higher-paying tenants. Tenants like these are in the market for a rental home with a quality kitchen— which is different from a luxury kitchen. Truth be told, high-end or luxury upgrades rarely result in a higher rental rate. The exception to this is if your rental home is positioned in a market that will support higher rent. In this case, your entire home should be similarly upgraded. However, if this isn’t the case, your best option would be 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. A homeowner may look at that as a good trade-off for living in a beautiful kitchen but most tenants would not. Tenants may not appreciate having to bear the responsibility of painting that level of luxury. In addition to that, these materials increase your maintenance costs since they are expensive to repair or replace and you may need to do it often— especially with how easy it is to damage.
There are many other reasons why creating your dream kitchen isn’t the best project for your rental home. Tenants tend to go for rental homes that have been designed to reduce the amount of upkeep needed. They do still want quality appliances and updated features. But quality and luxury aren’t synonyms, and tenants are more likely to look at a high-end kitchen as more of a hassle than a bonus. So, having a high-end kitchen alone does not mean you can charge more in rent. In fact, many tenants may not be willing to pay a higher rate for that feature alone.
There are other matters to consider when you are planning to remodel your kitchen. One of these is if the new kitchen doesn’t match the quality of the rest of the property. Inconsistent upgrades to your rental property would actually have negative implications. 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 not view your rental home as complete. They may think it’s an unfinished project that isn’t ready to be lived in. Even upgrading one room in the house also does little to increase your property values, 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. Worn cabinets can be given a whole new look just by having it painted or resurfaced. For a fraction of the cost, you can immediately bring a dated kitchen into the present. 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. What’s more, you no longer have to worry about whether your tenant will damage your expensive tile, stainless steel appliances, or granite countertops.
To summarize, if you don’t have a budget big enough to complete high-end upgrades with consistent style and quality throughout the whole investment property, you’d do better by going for 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 what the professional Bangor property managers at Real Property Management Acadia can help you with. You can benefit from our industry expertise and our quality remodeling contractors. They can help you find out the best ways to upgrade your rental property to optimize your rental rates and increase your property values. Contact us or call us at 207-561-7482 for more information.
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