6 “Desirable” Features That Are Liabilities in Rentals
You want your rental home to be profitable. One of the best ways to charge a little extra rent is to have luxury features that renters love. While it’s easy to find lists of desirable features, what the trend lists don’t tell you is the risks that come with each upgrade. Certain features may be in high demand, but renters don’t realize the liabilities involved.
Whether you’re considering properties for your portfolio or profitable renovations, it’s important to know the risks associated with otherwise attractive features in a rental home.
Swimming Pools
If you’ve ever lived in a home with swimming pool, you know how much work they require. Cleaning, covering, and chlorinating in a constant cycle or the water because not just green, but a fetid water-filled pit and mosquito breeding ground.
If you have a rental property with a swimming pool, either you need renters comitted to maintaining the pool or to provide a pool service to keep the pool in good condition. Even well-maintained, pools increase the risk of on-proprty injuries and accidents.
Wall to Wall Carpet
There was a time when carpets were considered the height of home luxury. Now we know how quickly they accumulate wear-and-tear. Carpets require regular cleaning and replacement every few years. They get stained, compacted, burned, and the carpet pad is a magnet for mold after spills and leaks. In contrast, laminate wood floors are extremely popular right now and provide a flooring that is both more elegant and longer lasting.
While you might not turn down a home with carpets, wall to wall carpets will likely need to be replaced in the near future.
Solar Panels
Eco-friendly renters love the idea of renting a home with solar panels. But they won’t expect the responsibility of maintaining those panels. In addition, the tie-in to the home’s power system and the electrical grid add to the liability potential if something goes wrong. Like a swimming pool, solar panels are a feature landlords must plan to maintain themselves no matter how attractive renters find them.
All-White Kitchen/Bathroom
Then there’s the oh-so-trendy all-white kitchen (or bathroom). An all-white design may look amazing when clean. However, nothing shows dirt, spills, or damage like an all-white kitchen. Scuffs on the cabinets, scratches in the cooktop, and other little wear-and-tear occurences will make an all-white kitchen fade all too quickly.
Rental homes benefit from durable and wear-tolerant designs. Neutral colors and textured surfaces will not only help your tenants enjoy their kitchen between pristine cleanings, but it will also minimise the need for touch-ups during turnover for your kitchens (and bathrooms) to maintain their appeal.
Whole-Home Generators
A whole-home generator sounds like a great idea. Who doesn’t want backup power during storms and outages? The only problem is that a whole-home generator isn’t one of those convenient “set it and forget it” features you can let your tenants take care of. A large generator connected to the home’s power grid needs constant maintenance and inspections. And if something goes wrong, the generator itself can become a source of danger. It might produce carbon monoxide, become a fire hazard, or cause a power surge in the home’s electrical system if poorly maintained or used improperly.
Basement Bedrooms
Finished basements can be a big hit with renters who like the extra space and the potential for a sound-proofed den or home office. Some homes have a basement kitchen or a convenient extra bathroom. What you want to avoid is a basement bedroom or suite unless you are 100% sure that the bedroom conforms to the building code. In most states and cities, bedrooms absolutely must have a window (for fire escape reasons) and not all basements are suitable. While a house might have a finished basement, you can’t list that space as a bedroom (and should encourage renters not to use it that way) unless it meets bedroom safety design requirements.
Building a Secure Rental Portfolio
When building your rental home portfolio, avoiding unecessary liability should factor into your plans. Why take the risk of unecessary property damage, tenant injuries, excessive maintenance requirements, unpredictable equipment failure, or future safety-related lawsuits when you don’t have to? Simply avoid these high-liability features no matter how attractive they might be to renters in your area.
For more useful insights on how to keep your rental portfolio safe and profitable, call Leaf Management.