What Interior Upgrades Add Value to Rental Properties and Which Don’t
Property owners are constantly on the lookout for ways to enhance their rental units to attract more tenants, increasing rents while simultaneously drawing in long-term tenants. Some interior improvements can provide increased rents, other investments yield no tangible return whatsoever. Understanding which features matter most for tenants helps landlords make informed renovation decisions.
Renters value updated appliances, functional designs, and ample counter space in their kitchens. They appreciate stainless steel appliances and durable counter surfaces like quartz or granite. Even small upgrades like backsplash tiles, cabinet hardware, or under-cabinet lighting can increase perceived value and provide tenants with greater enjoyment. Kitchens are focal points in daily life, so investing in them financially is important.
Renters are willing to pay extra for in-unit laundry facilities, as they increase rents and reduce tenant turnover rates. Compact or stackable models offer cost-efficient solutions, especially in small spaces. Rent income and tenant satisfaction are often more important than initial installation costs, especially in urban settings where alternatives to laundromats may not be as appealing.
As with modern kitchens, bathrooms also play an essential part in renting decisions. Simply updating with LED lighting or new vanities may make all the difference, especially in smaller apartments where walk-in showers, rain showerheads, or additional storage can add value compared to luxury upgrades like heated floors that may only appeal to high-end apartments.
Hardwood or luxury vinyl plank floors attract renters more than carpet, as they are more beautiful, easy to care for, and durable. Property managers should invest in durable mid-range materials instead of costly options to minimize maintenance costs and increase tenant satisfaction, as carpets may be seen as outdated and difficult to maintain.
Storage solutions such as built-in shelving, closet organizers, or additional cabinetry can add tremendous appeal to a property. Renters of smaller apartments tend to appreciate these features that show thoughtful design consideration for daily life, which help set apart an apartment from others on the market.
Upgrades that do not yield their promise often end up costing more than they’re worth and even deter potential tenants, including trendy design elements like bright accent walls or quirky fixtures that turn away tenants. Converting bedrooms into home offices or gyms could reduce appeal while restricting versatility. Upgrades too luxurious like wine fridges or smart mirrors rarely affect rental decisions and should only be utilized within luxury markets.
Wall-to-wall carpeting is often not included as part of rental packages in most markets, since renters tend to prefer hard surfaces for durability and easy upkeep. Some tenants might enjoy having carpeted bedrooms due to comfort reasons but modern renters typically do not. High-maintenance landscaping that’s visible from balconies or windows might turn tenants off, or drought-resistant designs might offer lower utility bills with reduced upkeep expenses.
Landlords and property managers can make sound investments when they understand what renters truly value. Successful upgrades strike a balance between cost-efficiency and functional value to meet today’s tenants without over-personalizing spaces. Property owners can maximize rental income by emphasizing universal design and comfort and forgoing costly renovation projects that don’t add real value.