What Are the Highest ROI Rental Improvement Projects?

By Shelby Campbell

With over two and a half decades of unwavering commitment to the mortgage industry, I am your seasoned Mortgage Loan Officer dedicated to helping individuals and families achieve their homeownership dreams.

If you’re looking to buy a rental or improve one you own, one question comes up over and over: which upgrades actually deliver the best return? The reality is that not all renovations pay off equally. Spending a lot doesn’t automatically translate into higher rent or faster leasing. But in today’s market, strategic, tenant-focused improvements often outperform major overhauls.

I worked with a client preparing their rental for new tenants earlier this year. They were planning to spend around $7,000 replacing the kitchen cabinets simply to make the space look more “updated.” After reviewing what similar rentals in the area were offering, I suggested a simpler approach: repaint the cabinets, swap the hardware, and install modern lighting. The total cost came in under $2,000, and within days, a new tenant signed a two-year lease at a 12% higher rent.

This experience is a great reminder that in today’s market, smart, thoughtful updates matter far more than expensive ones. With that in mind, here are a few improvements that consistently deliver strong returns for landlords.

1. Boost your curb appeal. First impressions count, even for rentals. Most landlords underestimate how much the exterior influences a tenant’s decision. But the reality is, simple updates like fresh paint, cleaning the exterior, updating house numbers, and tidying up landscaping can completely change how a property feels. These small touches make the home look cared for and inviting, which can be the difference between a tenant scrolling past your listing online or scheduling a showing. Curb appeal doesn’t need to be expensive; it just needs to look intentional and well-maintained.

2. Invest in durable, modern flooring. Carpet may seem like the easy option, but it wears out quickly, traps odors, and can make a rental feel dated. A practical alternative is vinyl plank flooring. It’s waterproof, durable, and gives the space a clean, modern look without a huge investment. Tenants notice the difference immediately, and it reduces maintenance and replacement costs over time. Flooring also photographs well, which is more important than ever in 2025 when most renters start their search online. Even small flooring updates can dramatically improve both the look and the perceived value of your rental.

3. Choose simple kitchen and bath updates. You don’t need a full remodel to make these spaces appealing. Small, targeted improvements like painting cabinets, updating faucets, adding modern light fixtures, and swapping out hardware can make kitchens and bathrooms feel fresh and modern, often for under $3,000. Most tenants aren’t really looking for luxury granite or high-end finishes; they want clean, functional, and low-maintenance spaces. Simple, modern updates that are easy to clean tend to attract quality tenants and keep units leased longer.

4. Consider smart and energy-efficient upgrades. Tenants today care about convenience and utility costs. Installing a smart thermostat, keyless entry, or LED lighting can make a property feel more modern while also reducing energy usage. These small additions also help justify slightly higher rent and appeal to renters who value efficiency. They also come with practical benefits for landlords, including fewer lockouts, less turnover, and smoother management overall. These upgrades aren’t flashy, but they make day-to-day life easier for tenants and more predictable for property owners.

5. Prioritize storage and functionality. Storage is something tenants notice right away, yet it’s often overlooked. Adding closet organizers, pantry shelves, or hooks and racks can make a big difference in how livable a unit feels. Even inexpensive additions, like a $150 shelving system, can set your rental apart when tenants compare similar units. Functional spaces create a sense of thoughtfulness and care, making tenants want to stay longer and treat the property well.

You don’t need a full remodel to increase your rental’s performance. Often, the smartest updates are small, thoughtful, and tenant-focused. Improvements like better lighting, practical storage, and modern touches can make the space feel fresh and well-maintained without breaking the bank.

If you’re thinking about buying, updating, or repositioning a rental, the key is to focus on the changes that actually impact tenants’ experience and perception of value. If you need personalized guidance, I’m offering a free, no-obligation consultation. Just reach out to me via phone or email to schedule a time. Let’s turn your next rental into one of your best-performing investments.