The Renovations That Actually Increase Rent

If you’ve spent any time on social media, you’re probably familiar with the concept of the “landlord special.” Often featured in the before part of before-and-after videos, they include things like generations of cheap carpeting laid on top of each other, door knobs and light switches covered in layers of white paint, walls repaired with plaster that no one ever bothered to come back and sand, kitchens that would seem dated on the The Brady Bunch, and so on. Rentals with these kinds of features are mocked as the pinnacle of cheap, depressing housing and it’s generally assumed that landlords who own them couldn’t care less.

Needless to say, landlord specials aren’t usually fetching premium rents, and investors hoping to entice quality tenants will often aim for interiors that appear the opposite. However, many find that it is all too easy to over-renovate and spend a fortune on finishes that renters simply don’t care enough to pay extra for. 

So, how do you walk the line between economy and quality? It all comes down to knowing your market and what actually adds value. Read on to learn which renovations command top dollar, and which ones are a waste of money.‍

Renovate for the Renter, Not Your Instagram

Before we dive in, we should highlight the absolute most important thing to remember: the renter is moving into the property, not you. 

The biggest mistake investors make is upgrading a rental based on personal taste instead of what the local renter market expects. What most renters want is a place that is clean, durable, move-in ready, and priced right. When they walk in for a viewing, it should feel like a blank canvas awaiting the touches that will make it their home instead of feeling like it’s already someone else’s.

Home Improvements That Increase Your Market Rental Value

So, what renovations actually do create more demand for rental properties? Generally speaking, it’s the renovations that improve a tenant’s quality of life and are easy to live with. No matter who you’re renting to, these pretty much always top the list:

1) Clean, Neutral, Consistent Paint

It may sound boring, but paint is one of the very first things that renters notice. If a paint job looks clean and professional, it significantly raises the perceived value of a property right away. Here’s what you should aim for:

• Fresh neutral wall color
  
• Trim painted correctly (not blended into the walls)
  
• No paint over hardware
  
• Touch-ups that look intentional, not sloppy
  

2) Flooring That’s Durable 

When it comes to flooring, renters want it to be clean, solid, and easy to care for. 

In most situations, LVP is the way to go. It looks nice, it’s inexpensive, it’s easy to clean, and it’s not going to get ruined the moment someone drags a table across it. 

Cleaned, refinished hardwoods and carpet are the two next best options. They’re both a little harder to care for and are pretty much guaranteed to need more TLC between turns, but are economical enough to make sense in rental properties. 

3) Functional, Updated Lighting 

Good lighting can increase a rental’s perceived value, but it can go sideways fast. 

A good rule of thumb is to keep things simple and broadly appealing. Think bright, simple fixtures, clean ceiling fans where expected, and recessed lighting only if it makes sense and isn’t overkill.

Meanwhile, stay away from things like expensive statement chandeliers, trendy fixtures that will look dated in 18 months, and anything fragile that residents will break or you’ll constantly have to replace.

4) Solid and Simple Kitchen/Bath Refurbs

Kitchen and bathroom refurbs are where investors tend to overspend the most. Stay away from custom finishes and focus instead on the basics:

• Clean cabinet fronts (painted or replaced if needed)
  
• Durable counters
  
• Updated hardware
  
• Clean backsplash

Don’t install delicate materials that get destroyed easily. If you add something, make it easy to maintain and easy to replace.

5) A Fenced Yard 

Having a fenced yard is a huge advantage. It adds a layer of security and is an especially big selling point for renters with pets or small children.

If your property has a yard, fencing it can increase demand, reduce days on market, and help you attract longer-stay residents.

Home Improvements that Don’t Boost NOI

If the improvements that increase rent are the ones that noticeably improve tenants’ quality of life, the improvements that are a waste of money tend to be the exact opposite. They’re at best no nicer/easier to live with than cheaper utilitarian finishes or they’re actually off-putting and more of a hassle. 

For example:

1) Over-Improving Past the Neighborhood Standard

What most renters are ultimately looking for is a home at the right price and, most of the time, they’re simply not willing to pay outside of the general neighborhood range no matter how nice a property is. 

Remember, people generally think of rentals as the place they will live for maybe 2-5 years, so marketing to renters is not the same as marketing to people looking for forever homes. 

2) High-End, Fragile Finishes

Anything that’s expensive and easy to damage is a bad rental decision.

Examples:

• Custom fixtures
  
• Fancy countertops that stain easily
  
• Anything that’s costly to replace at turnover
  

Renters don’t treat homes like owners do, and they shouldn’t have to. As a landlord, your job is to build something that can withstand the wear and tear of everyday life.

3) Big Yards 

A fenced yard is great for attracting long-term renters with kids and pets, but there is such a thing as too much outdoor space. 

The fact of the matter is, tenants don’t want to spend all their free time cutting grass and maintaining landscaping. Plus, if they don’t cut the grass, you’re the one the city is going to come after. 

4) Pools 

Pools are expensive, labor-intensive, and a MASSIVE liability. Steer clear. 

Don’t Forget About CapEX

Lots of landlords purchase investment properties and renovate to get them rented. Meanwhile, they fail to budget for the big-ticket expenses that are bound to pop up in a matter of years. These include things like:

• Roof replacement
  
• HVAC replacement
  
• Big plumbing or electrical issues
  
• Major turnover repairs after a rough resident
  

Even if your rental cash flow is strong, one big CapEX hit can wipe out years of profit if you don’t plan for it.

When you’re planning your renovation budget, always keep this question in mind: What will this house require in the next 3–5 years, and how do I make sure I’m ready for it?

The Bottom Line

Rental renovations are not about maximizing visual impact — they’re about maximizing consistency, longevity, and demand. When renovations support those goals, they improve performance. When they don’t, they eat your returns.

The best performing rentals aren’t the ones that have the most unique or expensive finishes. Instead, they are usually clean, neutral, functional, made of durable materials, match neighborhood standards, and are priced realistically for current market conditions. 

So, the next time you’re thinking about how to avoid your property getting branded a “landlord special,” don’t over-think it. Just create a space that someone can comfortably live in, and you’ll be just fine. 

Looking for more guidance about what renters expect in your market? We’re here to help. Reach out to one of Evernest’s Investor-Friendly Agents to talk about renter profiles, budgeting strategies, and more.