Owning rental property isn’t just about collecting rent—it’s about building long-term wealth. The right rental property renovations can turn a so-so property into a high-demand, high-income asset. But here’s the hard truth: not every upgrade is created equal. Some renovations pay for themselves many times over, while others drain your budget and add little value.

We’ve seen it firsthand. Investors walk into a property, eager to get started on investment property remodeling, but without a clear plan. They might rush to update the cabinets or install fancy lighting, thinking it’ll wow tenants and justify a rent hike. 

Sometimes it works—but often, the results fall short.

Why? Because successful rental property renovations aren’t about following trends or copying what you see on TV. They’re about understanding your market, your tenants, and your long-term goals. It’s a balancing act: you want to attract quality tenants, keep maintenance costs in check, and boost your property’s value—all without overspending.

Dulcey Stevens, co-owner of Home Experts Construction and design lead, puts it this way: “A rental renovation isn’t just a facelift. It’s a strategic investment. Good design is about more than color palettes—it’s about choosing features that last, appeal to tenants, and make your property stand out in a crowded market.”

That’s why we focus on high-ROI rental upgrades. We look at what tenants actually want, what the competition is offering, and what improvements have a proven track record of increasing income and appreciation. We don’t chase every trend, and we never recommend a renovation just for the sake of change.

If you’re investing in rental property, your goal is clear: maximize returns and minimize headaches. That means making choices that serve both you and your tenants. In this guide, we’ll walk through the numbers, the features that matter, and the upgrades to avoid—so you can make every dollar count.

The Numbers Game: How Well-Planned Updates Improve Cash Flow and Marketability

Let’s get real about the numbers. Every investor dreams of a property that practically pays for itself, but the path to that dream is paved with smart, calculated decisions—not wishful thinking.

When you renovate with ROI in mind, you’re not just spending money—you’re making an investment that should pay you back, month after month. The best upgrades do two things: they boost your rental income and increase your property’s market value. But how do you know which renovations will deliver?

Start by running the numbers. Look at your local rental market. Your first question is, “Should I renovate my rental?”  What are comparable properties offering? What features command higher rents? If you can add those tenant-friendly upgrades at a reasonable cost, you’re on the right track.

Take kitchens, for example. A modern, functional kitchen is one of the top amenities tenants look for. You don’t need granite counters or custom cabinets—just clean lines, durable surfaces, and efficient appliances. These upgrades can often justify a rent increase and attract long-term tenants.

Flooring is another area where smart choices pay off. Durable, low-maintenance options like luxury vinyl plank or tile are tenant-proof and cost-effective in the long run. They look good, stand up to wear and tear, and save you money on repairs.

But don’t just take my word for it. Daragan Brankovich, a general contractor with over 40 years of experience (and co-owner of Home Experts Construction) says: “The best renovations are the ones that hold up under real-world use. You want upgrades that can take a beating and still look good. That’s what keeps tenants happy and your maintenance calls down.”

It’s also important to avoid over-improving. If you put $30,000 into a renovation but only see a $10,000 bump in property value or rental income, that’s a losing proposition. Always weigh the cost of upgrades against the potential return. Focus on what tenants value most and what will set your property apart without breaking the bank.

Finally, consider the long-term. Some renovations may not pay off immediately but can reduce vacancy rates and maintenance costs over time. Think energy-efficient windows, updated plumbing, or smart thermostats. These features make your property more attractive and easier to manage.

The bottom line: every renovation should have a clear purpose and a measurable payoff. If you’re not sure where to start, talk to local property managers or real estate professionals—they know what works in your market.

What Tenants Want: Key Features That Increase Rental Demand

You are likely wondering what are the best renovations for rental properties. Understanding what tenants want isn’t guesswork—it’s market research. The most successful rental properties aren’t just well-built; they’re well-matched to the needs and desires of today’s renters.

So, what features top the list? Start with the kitchen. It’s the heart of any home, and tenants notice when it’s outdated or cramped. Simple upgrades—like new cabinets, modern hardware, and energy-efficient appliances—can make a world of difference. You don’t have to go high-end; focus on clean, functional, and easy to maintain.

Flooring is another big one. Tenants want something that looks good and is easy to clean. Carpets can be a turnoff, especially for families or pet owners. Durable vinyl, tile, or laminate flooring stands up to traffic and is a breeze to maintain.

Smart home features are quickly becoming must-haves. Programmable thermostats, keyless entry, and security systems offer convenience and peace of mind. These upgrades don’t just attract tech-savvy tenants—they can also justify a modest rent increase.

Don’t overlook storage. Ample closets, built-in shelving, and efficient layouts make life easier for tenants and set your property apart from the competition.

Dulcey Stevens says: “Designing for tenants means thinking about their daily lives. What makes their routines easier? What features will they use every day? If you can answer those questions, you’ll create a space that tenants want to stay in—and that’s good for your bottom line.”

Finally, pay attention to curb appeal. First impressions matter. A tidy yard, fresh paint, and well-lit entryways can make your property feel welcoming and safe.

Here’s a quick list of tenant-friendly upgrades:

• Modern, functional kitchens
• Durable, low-maintenance flooring
• Smart home technology
• Ample storage solutions
• Updated lighting and fixtures
• Fresh exterior paint and landscaping

Each of these upgrades is about more than just looks—they’re about creating a space that tenants can call home. When tenants feel comfortable and valued, they’re more likely to stay, reducing turnover and vacancy costs.

Upgrades to Avoid: What Doesn’t Add Value

It’s easy to get carried away with renovations, especially if you love design or want to impress potential tenants. But not every upgrade is a smart investment. Some improvements cost more than they’re worth—and can even make your property harder to rent or maintain.

First on the list: over-customization. Unique tile patterns, bold wall colors, or quirky fixtures might appeal to you, but they can turn off future tenants. Stick to neutral, timeless designs that appeal to the widest audience.

Luxury finishes are another trap. High-end appliances, marble countertops, or custom cabinetry might look stunning, but they rarely pay off in a rental setting. Most tenants are looking for clean, functional spaces—not luxury.

High-maintenance features are also best avoided. Think specialty flooring that scratches easily, delicate light fixtures, or built-in tech that’s expensive to repair. These upgrades can lead to more maintenance calls and higher costs over time.

Dragan Brankovich offers this advice: “When you’re renovating a rental, durability is king. Fancy finishes might look good for a while, but if they can’t stand up to daily use, you’ll spend more fixing them than you ever made in rent.”

Finally, avoid upgrades that don’t match the neighborhood. If your rental is in a mid-range market, adding luxury features won’t necessarily attract higher-paying tenants. In fact, it can price your property out of the local market and lead to longer vacancies.

Here’s a rundown of upgrades to skip:

• Overly personalized design choices
• Luxury finishes in mid-market properties
• High-maintenance or delicate features
• Unnecessary tech upgrades
• Major remodels that don’t fit the neighborhood

Each of these can eat into your ROI and make your property harder to manage. Stick to what works, and save the splurges for your own home.

Investing Wisely to Attract Quality Tenants and Improve Long-Term Profitability

Rental property renovations aren’t about keeping up with the latest trends or outdoing the competition. It’s about making smart, strategic choices that serve both your tenants and your bottom line.

Start with a clear plan. Focus on high-ROI rental upgrades that tenants value—modern kitchens, durable flooring, smart home features. Avoid over-customization and luxury finishes that don’t fit your market. Always weigh the cost of improvements against the potential return, and don’t be afraid to consult experts.

Every renovation is an opportunity to build value. With the right approach, you’ll attract quality tenants, reduce turnover, and watch your investment grow year after year.

If you are ready to take the next step, contact us today to get started.