Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Improvements that do not add value to rental property include?

1. Necessary plumbing repairs

2. New flooring installations

3. Certain cosmetic enhancements

4. Newly built fences

The correct answer is: Certain cosmetic enhancements

Improvements that do not add value to rental properties often relate to cosmetic enhancements that may not resonate with all potential tenants or may not significantly increase the property's rental appeal. Certain cosmetic changes, such as superficial paint jobs, trendy decor, or minor fixtures, can sometimes result in minimal long-term value. While they may improve aesthetics, they do not always translate into higher rent or increased tenant demand, thus failing to justify their cost in terms of value added. In contrast, necessary plumbing repairs are essential for maintaining property functionality, new flooring installations can enhance the durability and appeal of a rental unit, and newly built fences can provide security and privacy, which are often priorities for renters. Each of these improvements is more likely to enhance a property's value and appeal directly, making them valuable investments for landlords.