Which renovation moved the needle most on your rental value?

Question

Curious what others have experienced here. When you've put money into a unit, what actually translated into higher rent or faster leasing?

LVP flooring seems to be everyone's go-to these days. Bathroom updates? Kitchen refresh? Fresh paint and lighting? Or something less obvious that surprised you?

Would love to hear real numbers if you have them. What did you spend, what did rent go up by, and how fast did the unit fill?

Ashish Acharya · Answer

Ricardo, I’ve found that the renovations that move the needle most are usually the ones tenants notice immediately and use every day, not necessarily the most expensive ones.

For many rentals, fresh paint, durable flooring, better lighting, clean bathrooms, updated hardware, and a simple kitchen refresh can often improve leasing faster than a full high-end remodel. I’d compare the cost of each upgrade against the realistic rent increase and reduced vacancy it can produce. Spending $25K to raise rent $100/month is very different from spending $5K to raise it the same amount.

I’d also separate rent-driving improvements from maintenance items. A new HVAC or roof may not increase rent much, but it can protect cash flow by reducing future repairs and making the property easier to insure and operate.

From the tax side, keep every renovation component tracked separately. If you replace an existing roof, HVAC system, flooring, or another building component, there may be a partial disposition opportunity where the remaining basis of the old component can potentially be recognized rather than continuing to depreciate something that is no longer there. The IRS allows partial-disposition treatment in qualifying situations when a portion of a building or structural component is actually disposed of.

And once the rental is placed in service, I’d also evaluate cost segregation. Renovated rental properties can have shorter-life components that may qualify for accelerated depreciation, although the real benefit depends on whether the resulting losses are actually usable under the passive-loss rules.

I’d judge renovations by three numbers: what you spent, how much additional rent you actually achieved, and how quickly the unit leased afterward.

Happy to connect!

Jim Johnson · Answer

I look at this a little broader than just “how much did the rent go up?” When we're evaluating whether an upgrade was actually worth it, I'm usually looking at:

• How much we spent
• Rent before vs. after
• Days on market
• How well the improvement holds up between tenants
• Whether it reduces future turnover or maintenance costs

LVP tends to check several of those boxes because you're improving appearance while also getting durability. Kitchens and bathrooms can move rent too, but I've seen plenty of cases where a smaller refresh—paint, lighting, fixtures, hardware, countertops—gets most of the leasing benefit without the cost of a full renovation.

For me, the best renovation isn't necessarily the one that produces the biggest rent increase. It's the one where the numbers still make sense after you factor in vacancy, useful life, and what you'll spend maintaining it.

Drew Sygit · Answer

A brand new house will rent fastest and for the highest rent!

The challenge is you won't make any money, at least not for decades, if you don't watch your ROI on renovations.

In our 26 years of experience, you want to "Maintain to the Market" + 5-10% more.

What that "5-10%" more is depends on the property and competition.

So, there's no set answer(s).

Denise Supplee · Answer

Hi @Ricardo Gonzalez, you'd be surprised but just Fresh paint and updated lighting can lease units faster than almost anything else, first impressions during a showing matter more than people expect. LVP flooring earns back its cost and holds up far better than carpet between turnovers. Kitchen and bathroom updates raised rent more in dollar terms but took longer to pay back. With a limited budget I'd put it into paint, lighting, and flooring first, and save the bigger kitchen and bath work for when the numbers call for it.

Which renovation moved the needle most on your rental value?

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