5 Renovation Upgrades That Actually Increase Rent: A Guide for Smart Investors

Every property owner shares the same ultimate goal: maximizing Return on Investment (ROI). When you own a rental property, there is a constant balancing act between keeping costs low and keeping the property attractive enough to command a competitive market rate.

One of the most common questions we get at BCG Real Estate Group is, "Should I renovate?"

The answer is almost always yes, but with a major caveat: You must renovate for the tenant, not for yourself.

There is a massive difference between renovating a "forever home" and updating an investment asset. Putting high-end marble countertops in a mid-range rental might look beautiful, but it won’t necessarily yield a rent increase that pays for that marble in a reasonable timeframe. Smart investing is about high-impact, durable, and cosmetic changes that increase the perceived value of the home.

If you want to reduce vacancy time and justify a higher monthly rent, here are the five upgrades that actually move the needle.

1. The "Modern Neutral" Paint Job

Paint is, dollar-for-dollar, the highest ROI improvement you can make. However, the days of "Landlord White" are behind us. While stark white is cheap, it can make a unit feel sterile, clinical, and cheap.

On the flip side, you want to avoid bold, personalized colors. Just because you love navy blue accent walls doesn't mean a potential tenant will.

The Solution: Go with modern neutrals. "Greige" (a mix of gray and beige) or warm off-whites are the industry standard for a reason. They make spaces feel larger, brighter, and cleaner. A fresh coat of paint also signals to a tenant that the property is well-maintained, setting a precedent that they should treat it with respect.

Pro Tip: Use a satin or eggshell finish for walls rather than flat paint. It is much easier to wipe down and clean between tenancies, saving you money on repainting costs in the long run.

2. Upgrade the Flooring (Get Rid of the Carpet)

If you are still installing carpet in your rental units, you’re likely leaving money on the table. Tenants generally dislike carpet because it traps odors, stains easily, and aggravates allergies. From a management perspective, carpet has a short lifespan and often requires professional cleaning or replacement after every turnover.

The Solution: Luxury Vinyl Plank (LVP).

LVP has taken the rental market by storm. It mimics the look of high-end hardwood flooring but is waterproof, scratch-resistant, and incredibly durable.

• For the Tenant: It looks luxurious and is easy to clean.

• For the Owner: It lasts significantly longer than carpet and usually only requires a sweep and mop to turn over a unit.

Installing LVP throughout the main living areas (and even bedrooms) instantly elevates the class of the property, allowing you to list at a higher price point.

3. The "Mini" Kitchen Facelift

The kitchen is the heart of the home, even in a rental. However, a full kitchen demo and remodel costs thousands of dollars and takes weeks to complete. You rarely need to go that far to get a rent bump.

The Solution: Focus on the "jewelry" of the kitchen.

Instead of replacing cabinets, paint them. If the cabinets are in good structural shape, a coat of white or light gray paint can make a 1990s kitchen look brand new.

• Hardware: Swap out old, tarnished knobs for modern brushed nickel or matte black handles. This costs very little but drastically changes the visual appeal.

• The Faucet: Install a high-arc, pull-down faucet. It adds a "chef’s kitchen" vibe for under $200.

• Backsplash: A simple white subway tile backsplash is timeless, inexpensive, and protects your walls from grease and water damage.

These cosmetic touches photograph beautifully for listing sites, which is essentially the "first showing" for modern renters.

4. Modernizing the Bathroom Vanity and Lighting

Bathrooms are the second most scrutinized room in a rental. Old, rusted light fixtures and low yellow lighting make bathrooms feel dingy, regardless of how clean they actually are.

The Solution: Brighten and tighten.

Start with the lighting. Replace flush mount dome lights and vanity strips with modern LED fixtures. Ensure the light temperature helps your cause - too warm can make things look dirtier and older than they are; too cool and you wind up looking like a hospital operating room or warehouse storage. Bright bathrooms feel cleaner, and we recommend anything with a color temperature of between 3000K-4000K.

Next, look at the vanity. If the cabinet is old, swapping it for a pre-fabricated vanity from a big-box store is often cheaper than trying to salvage the old one. A new vanity comes with a new sink and countertop attached, instantly modernizing the space. Finally, add a curved shower rod. It adds elbow room in the shower and adds a subtle hotel-quality touch that tenants appreciate.

5. Smart Home Technology

We are living in a digital age, and the demographic of renters is shifting toward Millennials and Gen Z. These tenants value connectivity and convenience, and they are willing to pay for it.

The Solution: Install a few key smart devices.

• Smart Thermostats: Devices like Nest or Ecobee allow tenants to control climate remotely and save on utility bills. This is a massive selling point during showings.

• Keyless Entry/Smart Locks: This is a win-win. Tenants love not having to carry keys, and you (or your property manager) can grant temporary access to maintenance vendors without needing to drive a physical key over to the property.

• Video Doorbells: Depending on the configuration of your building and access type; a Ring or similar doorbell adds a layer of security that makes tenants feel safer,

These upgrades signal that the building is modern and managed by a forward-thinking landlord.

Renovation is about Strategy, Not Ego

The goal of these renovations is not to win a design award; it is to create a durable, attractive product that appeals to the widest pool of qualified renters. By focusing on LVP flooring, neutral paint, kitchen cosmetics, bathroom lighting, and smart tech, you can significantly increase your asking rent while attracting tenants who will stay longer and take better care of the home.

Not sure where to start? BCG helps owners analyze their properties to determine exactly which upgrades will yield the highest return in our specific local market. We also have a vetted network of vendors to get the work done right and at a fair price.

Contact us today for a free rental analysis and let’s unlock the full potential of your investment.