Definitely agree the numbers usually win out... lenders are just wired that way, you know? But I'm curious, did your client run rental comps before diving into all those upgrades? I've seen folks get burned because they assumed nicer curb appeal automatically meant higher rents. It's tempting to think fresh paint and landscaping will bump up the rent significantly, but lenders usually rely on hard comps rather than potential or projected rents.
Maybe the takeaway here is to do cosmetic improvements strategically? Like, have you checked out similar properties nearby to see if those updates genuinely translate to higher rents—or are they just nice-to-haves that won't really move the needle on income? I've learned the hard way (ouch) that lenders aren't easily impressed by aesthetics alone. They're looking for consistent income streams, and if the math doesn't pencil out... well, all the pretty landscaping in the world won't help.
Totally get what you're saying about lenders focusing on hard comps, but honestly, sometimes those cosmetic upgrades do pay off even if the comps aren't crystal clear. I've had properties where minor aesthetic improvements (like fresh paint or nicer fixtures) attracted tenants quicker and reduced vacancy periods significantly. Sure, lenders might not directly factor that in, but shorter vacancies do improve your overall numbers, indirectly helping with DSCR. So yeah, comps matter, but don't underestimate the hidden benefits of strategic curb appeal tweaks...they've saved me more than once.
"Sure, lenders might not directly factor that in, but shorter vacancies do improve your overall numbers, indirectly helping with DSCR."
Good point there. I've found the same thing—small cosmetic upgrades can definitely help fill vacancies faster. But I'd caution against going overboard. It's easy to get carried away with aesthetics and overspend, especially if comps aren't backing you up. My rule of thumb: prioritize upgrades tenants actually notice (fresh paint, fixtures, landscaping) and skip the fancy stuff that only you appreciate... learned that one the hard way, haha.
Totally agree about not going overboard. I once splurged on these sleek, modern cabinet handles thinking they'd wow tenants... turns out nobody even noticed except my wallet. Lesson learned—stick to practical upgrades that actually move the needle.
Been there myself—thought I'd impress renters by installing fancy smart thermostats in every unit. Seemed like a no-brainer at the time, right? Turns out half the tenants didn't even bother downloading the app, and the rest just set it once and forgot about it. Makes me wonder, are these trendy upgrades ever worth it, or is it better to stick with basics that directly impact comfort and utility costs...? Lesson learned the hard way for sure.
