The Five Upgrades Tenants Actually Pay More For
Not all upgrades are created equal. Many rental owners spend money on improvements that look nice but do not increase rent, reduce vacancy, or improve tenant quality. The smartest upgrades are the ones tenants notice immediately and are willing to pay more for.
This post breaks down five upgrades that consistently deliver the best return for rental property owners, especially in competitive or cooling markets.
Why ROI Matters More Than Aesthetics
Tenants do not evaluate homes the same way owners do. They are not thinking about long-term durability or resale value. They are thinking about comfort, convenience, and how the home compares to others at the same price point.
An upgrade is worth doing if it:
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Increases rent
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Reduces vacancy time
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Attracts higher-quality applicants
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Lowers future maintenance
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Improves renewals
If it does none of these, it may be cosmetic rather than strategic.
Upgrade 1: Durable, Modern Flooring
Flooring is one of the first things tenants notice and one of the biggest differentiators in listings.
What tenants value:
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Hard surface flooring in main living areas
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Easy-to-clean materials
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Consistent flooring throughout the unit
Best options:
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Luxury vinyl plank
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High-quality laminate
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Tile in wet areas
Why it pays:
Hard surface flooring photographs well, reduces turnover costs, and holds up better to wear. Tenants routinely choose these units over carpeted ones and often accept higher rent for them.
Upgrade 2: Updated Lighting and Fixtures
Lighting dramatically changes how a space feels, yet it is one of the most affordable upgrades.
What tenants notice:
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Bright, warm lighting
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Consistent fixture styles
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Modern finishes
High ROI improvements:
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Replacing outdated fixtures
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Swapping old bulbs for LED
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Adding under-cabinet or vanity lighting
Why it pays:
Well-lit homes feel cleaner, safer, and more modern. Improved lighting increases perceived value without major construction.
Upgrade 3: In-Unit Laundry or Laundry Improvements
Laundry access is a major lifestyle factor for tenants.
Strong options include:
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Adding in-unit washer and dryer
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Providing hookups if feasible
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Upgrading shared laundry spaces
Why it pays:
Tenants consistently rank in-unit laundry among the most valuable amenities. Units with washers and dryers lease faster and often command higher rent.
Upgrade 4: Climate Comfort Improvements
Comfort is not optional. Tenants are willing to pay more for homes that are comfortable year-round.
High impact upgrades:
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Programmable thermostats
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Efficient heating and cooling systems
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Ceiling fans in bedrooms and living areas
Why it pays:
Comfort reduces complaints, emergency calls, and turnover. A home that maintains temperature well feels more valuable than one that struggles.
Upgrade 5: Curb Appeal and Entry Experience
First impressions matter more than many owners realize.
Simple improvements include:
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Fresh exterior paint or touch-ups
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Clean landscaping
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Updated house numbers
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Modern entry lighting
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Clean walkways and entry doors
Why it pays:
Tenants decide how they feel about a home before they step inside. Strong curb appeal increases showing-to-application conversion and sets the tone for pride of occupancy.
Upgrades That Often Do Not Pay Off
Some upgrades rarely justify their cost in rentals:
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High-end countertops beyond basic stone
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Custom cabinetry
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Designer tile
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Luxury appliances
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Over-personalized finishes
These features may help resale value but often do not increase rent enough to justify the expense.
How to Decide Which Upgrade to Do First
Ask three questions before spending:
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Will this upgrade help the unit lease faster?
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Will it allow for a rent increase or reduce vacancy?
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Will it lower future maintenance or turnover costs?
If the answer is yes to at least two, it is likely worth considering.
Timing Matters
The best time to upgrade is during turnover, not mid-tenancy. Coordinating improvements during vacancy reduces disruption, avoids partial work, and speeds re-leasing.
Plan upgrades in advance so they are completed before marketing begins.
Final Thoughts
The best rental upgrades are not the flashiest. They are the ones that improve daily living, photograph well, and make your property stand out at its price point.
By focusing on flooring, lighting, laundry, comfort, and curb appeal, owners can increase demand, justify higher rents, and reduce long-term costs without over-improving.