Best Upgrades for Rental Units That Maximize ROI

Let’s face it—owning rental units is a great way to build wealth, but if you’re not upgrading smart, you might be leaving money on the table. The goal? Boost rent prices, lower maintenance, and keep tenants happy so they actually renew their leases. That’s where strategic upgrades come in.

We’re not talking about gold-plated toilets or robot butlers (unless you’re into that kind of thing). These upgrades are affordable, impactful, and ROI-approved by your favorite contractor friend. So grab your clipboard, maybe a daily report, and let’s build some value.

1. Flooring That Wows (and Survives)

Carpet? That’s so early 2000s. Today’s renters want durable, stylish, and low-maintenance floors. Think luxury vinyl plank (LVP)—it looks like wood, feels great underfoot, and laughs in the face of spills.

Bonus: It holds up against floating floors and isn’t bothered by expansive soils if installed right. It’s a dream for general contractors and construction workers alike.

2. Kitchens – Where ROI Starts Cooking

You don’t need a custom home builder budget to make a rental kitchen shine. Swap out dated laminate countertops for butcher block or quartz, add sleek cabinet hardware, and go for energy-efficient appliances. Renters will swoon.

Pair that with an open floor plan and smart lighting, and you’ve just added serious value. Want extra credit? Add a GFCI (Ground Fault Circuit Interrupter) outlet or two in key areas—it’s a small touch that says “we care about safety.”

3. Bathrooms – Spa Vibes on a Budget

Bathroom updates bring in some of the highest returns. New vanities, framed mirrors, and a fresh form of tile go a long way. And let’s not forget felt (underlayment) and damp proofing—because a leak now is a change order later.

Consider fire-rated materials if you're doing major upgrades, especially in multi-unit buildings. Fire-resistive doesn’t have to mean boring—it can mean peace of mind.

4. Paint – The Miracle Worker

Nothing beats a fresh coat of neutral paint to make a place feel brand new. Pick a durable finish that can handle life’s little accidents. Bonus points for choosing low-VOC formulas to appeal to green building enthusiasts.

Paint the fascia and touch up any weathered frieze board (bird block) while you're at it—it’s curb appeal that makes a difference.

5. Curb Appeal – First Impressions Matter

Power wash the place, tidy the landscaping, and upgrade the exterior lighting. These small changes scream “well-maintained” before your potential tenant even steps inside.

Want to go big? Add some flatwork like a modern walkway, or rework the entry foundation using ready mix concrete for a polished look. Your construction company will thank you.

6. Smart Home Features = Smart ROI

Today’s renters love smart tech. Think video doorbells, smart locks, and programmable thermostats. They’re low-cost, easy to install, and renters are willing to pay more for the convenience.

You don’t need BIM (Building Information Modeling) to know this tech makes your unit more desirable—and helps your listing stand out in a sea of “meh.”

7. HVAC & Insulation – Comfort is King

An efficient forced air heating/cooling system and solid insulation not only save your tenants money, but they also reduce turnover (and complaints). If you’re planning long-term ownership, invest in sealing gaps, updating ductwork, and using quality green board (pressure-treated lumber) when applicable.

Bonus: You’ll impress energy-conscious tenants, especially those interested in passive house or green building features.

8. Lighting – Bright Ideas Pay Off

Swap those old yellowy lights for bright, LED fixtures. Good lighting makes small spaces look larger and cleaner. Consider motion-sensor lighting outside and modern fixtures inside for that upscale touch without the upscale cost.

In bigger renovations, check your blueprints or CAD (Computer-Aided Design) plans to see where strategic lighting placement could make an even bigger impact.

9. Laundry = Luxury

In-unit laundry is a game-changer. If space allows, stackable washer/dryers will boost your rent price and tenant satisfaction. Make sure the plumbing and electrical are up to code—no shortcuts here.

If you're digging in grade to install new lines, make sure you're using a licensed contractor and not your buddy with a backhoe and a dream.

10. Storage – The Secret Weapon

Extra closets, wall-mounted shelving, or built-in storage solutions can dramatically improve the functionality of a small unit. They're relatively inexpensive and super attractive to renters with “stuff.”

Built-ins can be easily framed during building construction or added as part of a light renovation—just don’t forget to update your bid and cost codes.

Final Thoughts

Rental property upgrades don’t have to be massive to make a massive impact. With a little strategy, a little elbow grease, and the help of a great construction site crew, you can turn your units into profit machines without going over budget.

So whether you’re a contractor, home builder, or a property owner teaming up with L&T Construction or another local pro—focus on smart, high-ROI upgrades that tenants actually care about. And always, always keep your change orders to a minimum.

The best part? Every time a renter signs on the dotted line, you’ll know your upgrades worked like a charm—and your return on investment is just getting started. 🏘️💰