Home Improvements to Make and Skip as a Landlord

When you’re putting a rental property on the market, you might be tempted to perform certain home renovations first in order to fill the unit faster or justify higher rent. While some upgrades do improve tenant demand and can fetch a little more rent, others are a waste of money that offer little to no return.

Instead of basing renovation decisions on presumed tenant design preferences, choose renovations based on how much value they’ll add over time.

Below are some examples of remodeling jobs that will work in your favor and some that won’t.

1. Practical Kitchen Upgrades Over Luxury Remodels

Kitchen upgrades are considered one of the most valuable improvements for homeowners and rental property investors. Kitchens are heavily scrutinized during property showings, and having an outdated kitchen can reduce a renter’s desire to live in your unit. However, you don’t need to renovate your entire kitchen. You’ll benefit most from simple upgrades like energy-saving appliances, high-end finishes, and cabinet refacing. Fixtures should be replaced if they look worn, cheap, or are dated, but you don’t need to add luxury smart appliances or upgrade your countertops.

If you’re not sure what counts as a practical kitchen upgrade, consult your property manager for insight. If you don’t have a property manager yet, consider hiring one. They can give you valuable insight into what renters in your local market actually want and what they’re willing to pay more for.

Experienced property managers analyze trends daily and know which property features attract higher rents. For example, League City property management company Green Residential works directly with tenants across the Houston area and has a clear picture of what upgrades generate real returns. When your renovations are based on real data, you’ll avoid unnecessary renovations and have more money for improvements that matter.

2. Durable Flooring Over Premium Finishes

Renters want good flooring, whether it’s carpet, tile, vinyl, or hardwood. When you choose durable flooring material, you’ll avoid the cost of frequent replacements and your floors will last through multiple tenant turnovers. If your flooring is in bad shape or looks ugly, that’s a sign you’re due for an upgrade.

Luxury vinyl plank flooring is now one of the most popular options for rental properties because it’s durable, water-resistant, and affordable. It’s great for people with pets and is easier to clean and maintain compared to carpet.

Luxury vinyl plank looks like hardwood flooring but resists scratches and moisture. It’s ideal for high-traffic areas like living rooms, hallways, kitchens, and even bedrooms. It’s cheaper to install compared to hardwood and tile, and you can replace individual planks without removing the whole floor.

Although many tenants like carpet, it doesn’t last long. The average lifespan of a carpet is about 10 years, but by your second or third tenant, not even professional cleaning can make it look attractive. Dingy, dirty, and worn carpet might be perfectly livable but it can deter some renters. It’s far more expensive to replace carpet every few years than it is to install luxury vinyl plank.

3. Landscaping and Exterior Maintenance Over Luxury Outdoor Spaces

Simple upgrades to your landscaping can increase your property’s appeal to tenants. It’s just a matter of regularly trimming trees and bushes, planting low-maintenance shrubs, refreshing the mulch, and fixing any broken concrete or asphalt driveways and walking paths.

Many renters like the idea of outdoor kitchens, fire pits, elaborate patio designs, and pools, but they don’t typically produce measurable returns. And if you do offer these extras – especially a pool – it could become a liability and a hassle to maintain.

4. Functional Bathroom Upgrades Over Spa-Style Remodels

Just like kitchens, renters will spend a lot of time analyzing the bathroom. A poorly maintained bathroom can be a deal breaker. If your bathroom looks like it’s stuck in the 1970s, a full remodel might be worth the investment. However, most property owners can get away with simply replacing outdated fixtures, like faucets and mirrors, to dramatically improve a bathroom’s appeal.

Good lighting and water-efficient toilets will reduce utility bills and maintenance issues. Small improvements can make a bathroom more appealing to potential tenants on even the strictest budget. There’s no need to turn your bathrooms into a spa.

Invest in Upgrades Tenants Notice Most

You’ll get the best returns from upgrades that improve the durability and functionality of your property. Skip the luxury remodels and opt for simple upgrades like better flooring, new paint, new fixtures, and safe outdoor spaces. This is the easiest way to increase the appeal of your unit while maintaining its long-term value.