The Best (and Worst) Renovations for Rental Properties in 2025

Maximize Your ROI and Avoid Costly Mistakes

When it comes to rental properties, every renovation decision should have one goal: increase rental income and property value without killing your cash flow. The truth? Not all upgrades are worth the cost—some are actually money pits.

In this guide, we’ll break down which renovations deliver the highest ROI in 2025 and which ones could leave you with a lighter wallet and zero rental return.

The Best Renovations for Rental Properties

1. Kitchen Refresh (Not a Full Remodel)

A full-blown, magazine-worthy kitchen remodel can cost $30K+, but tenants rarely pay enough extra rent to make that money back. Instead:

Replace outdated cabinet fronts or just repaint them.
Upgrade hardware for a modern look.
Swap old appliances for durable, energy-efficient models.

2. Durable Flooring

Carpet is cheap—but it’s a cleaning and replacement nightmare. Instead, go for:

Vinyl plank flooring (waterproof, scratch-resistant, and looks like hardwood).
Tile in kitchens and bathrooms for longevity.

This small change can reduce turnover costs and attract long-term tenants.

3. Bathroom Upgrades

Bathrooms don’t need to be luxurious, but they should feel clean and modern. High-ROI upgrades:

New vanity with storage.
Fresh grout or re-caulked tub/shower.
Water-saving fixtures to appeal to eco-conscious renters.

4. Curb Appeal Improvements

First impressions matter—especially in competitive rental markets.

Fresh paint or siding touch-ups.
Low-maintenance landscaping (mulch, perennials, gravel).
Modern exterior lighting for safety and style.

5. Energy Efficiency Upgrades

Tenants love lower utility bills, and efficiency upgrades can also justify higher rents:

Programmable thermostat.
LED lighting throughout.
Insulation improvements.

The Worst Renovations for Rental Properties

1. Luxury Finishes

Marble countertops, designer chandeliers, and high-end appliances rarely increase rental value enough to offset the cost. Save these for personal homes, not rentals.

2. Swimming Pools

A pool might sound appealing, but they’re expensive to install, maintain, and insure—and they can scare off families with young children.

3. Over-Personalized Designs

Bright accent walls, themed wallpaper, or quirky built-ins may match your style, but they limit your tenant pool. Keep interiors neutral and flexible.

4. Expensive Smart Home Systems

While basic smart locks or thermostats are a plus, elaborate integrated systems are pricey and can cause headaches if tenants aren’t tech-savvy.

5. Overbuilding the Space

Adding luxury features or excessive square footage rarely makes sense for rentals. Focus on functionality over size.

Conclusion

In rental property renovations, the rule is simple: spend where it counts, skip where it doesn’t. Choose upgrades that:

Increase durability.
Appeal to a wide range of tenants.
Keep maintenance costs low.

The best renovations aren’t always flashy—they’re the ones that quietly boost your profits for years.