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A few years ago, I bought one of these cool metal address plaques for a rental property I own.
It cost me $50 and this definitely wasn't a “need”… but even so – this thing was a HUGE improvement on the worn-out, disgusting address numbers that were plastered on the duplex when I bought it.
Was it a smart use of my money – to spend cash on something that simply enhances the aesthetic curb appeal, but doesn't directly put more money in my pocket each month?
I thought it was a good topic for discussion, because after all… when there is no discernable increase in revenue because of small improvements like this, does this kind of thing still make good financial sense?
Note: You can get the exact address plaque from this video right here.
Well, I think some of the dollars you spend on your real estate investments won't give you a dollar-for-dollar return like this. In the same way that communities spend money on parks and public services, they may never see a direct return on these kinds of dollars spent, but you'd better believe it adds a certain element of value to everyone who lives in the area (whether they realize it for not).
When your goal is to make your property a nice, desirable place to be (whether that means spending money on new doors, new windows, new siding, new flooring, new appliances, etc), you are going to see that value return to you somewhere down the line – in the form of:
- Tenants who treat your property with more respect.
- Tenants who are willing to renew their lease for longer periods of time.
- Tenants who will pay more over time.
- Tenants who complain less and cause fewer problems, etc.
But it starts with you.
As a landlord, you can add some very real value (even if it's merely the perceived value) to your property when you make these minor investments in upgrading the finishing touches. These little details do get noticed along the way, and the cumulative effect can make a lasting difference to your bottom line.
Now, for a traditional rental property like mine – this singular upgrade, by itself is NOT a game-changing improvement, but it's one of many easy, relatively inexpensive improvements that can add up to something big.
Not to mention, when I think about a short-term rental (the kind of property that gets listed on Airbnb – where landlords live and die by the ratings they earn from their patrons), these kinds of improvements can go much further. When your tenants expect a pleasant, memorable experience from your property, this kind of investment (if your property needs it) should be a pretty easy decision.