Renovating a rental can feel like throwing money into a black hole—especially if you’re guessing what tenants actually want. But the right upgrades don’t just look good. They raise rents, reduce turnover, and attract better tenants who treat the place like their own.
In 2025, with higher interest rates and tighter margins, landlords need updates that earn their keep fast. These five renovations consistently pay for themselves in under 12 months—and keep putting money in your pocket long after.
1. Adding In-Unit Laundry
For tenants, in-unit laundry isn’t just a perk—it’s a lifestyle upgrade. In most markets, adding a washer and dryer can raise rents by $75 to $150 a month. That’s a fast return, especially if you’re working with a small multifamily or converting a closet or basement nook.
The install cost isn’t as bad as you’d think. Compact stackable units and all-in-one washer/dryers keep plumbing simple, and many newer models are energy-efficient. For older buildings, this one upgrade often makes the entire unit feel modern.
2. Swapping Carpet for LVP Flooring
Carpet turns off renters and wears out fast. Luxury vinyl plank (LVP) flooring looks like hardwood, holds up to pets and spills, and rents better—especially in mid-tier units. It also eliminates one of the biggest maintenance headaches for landlords.
Expect to pay around $2–$4 per square foot installed. But if you’re able to increase rent by $50–$100 and cut down on turnover cleaning costs, it often pays for itself within the first lease cycle.
3. Upgrading Kitchen Lighting and Fixtures
You don’t need a full kitchen remodel to make an impact. Swapping out fluorescent lighting for modern fixtures, installing a new faucet, and updating cabinet pulls can completely change the feel of the space.
This cosmetic facelift costs a few hundred bucks but makes listing photos pop. Better photos drive more applications, which leads to faster leases and higher rents. In competitive areas, it can mean the difference between a one-week vacancy and a one-month one.
4. Creating a Functional Outdoor Space
Even a small patio or shared yard gets more attention with minimal effort. Adding a privacy screen, gravel area, or basic seating can turn an overlooked corner into a “bonus feature” that renters remember—and pay more for.
Tenants with pets, kids, or remote jobs especially value outdoor space. If your property already has it, you’re leaving money on the table by not making it usable. ROI here comes from both rent bumps and reduced vacancy.
5. Installing a Smart Lock and Thermostat
Smart home features used to be luxury add-ons. Now, they’re expected—especially by younger renters. A smart lock improves security and simplifies turnover (no rekeying), while a smart thermostat cuts energy costs and adds tech appeal.
Both can be installed in under an hour and cost less than $300 combined. Tenants love the convenience, and landlords save time on lockouts and temperature-related maintenance calls. It’s one of the few upgrades that boosts value and saves hassle at the same time.
Alexander Clark is a financial writer with a knack for breaking down complex market trends and economic shifts. As a contributor to The Daily Overview, he offers readers clear, insightful analysis on everything from market movements to personal finance strategies. With a keen eye for detail and a passion for keeping up with the fast-paced world of finance, Alexander strives to make financial news accessible and engaging for everyone.
