Top 15 renovations property managers can perform to increase ROI

As a property manager, one of your primary goals is to maximize the return on investment (ROI) of the properties you manage for your owners—or for your own investment properties. Renovations can play an important role by attracting high-quality tenants, reducing vacancy rates, lowering replacement costs, and allowing for higher rental rates.

Here are the top 15 renovations that can boost the ROI of rental properties, including insights from the 2025 State of the Property Management Industry Report.

1. Green Renovations

Sustainability is no longer just a buzzword; it’s a necessity. Green renovations not only appeal to environmentally conscious tenants but also reduce utility costs, making properties more attractive. Consider installing energy-efficient windows, LED lighting, and low-flow water fixtures. Solar panels are another investment that could reduce electricity costs and even generate income through energy credits.

2. In-Unit Laundry

According to our Industry Report, one of the top amenities renters look for is in-unit laundry. This convenience can be a game-changer, especially in rural areas where laundromats are less accessible. Installing a washer and dryer in each unit can justify a higher rent and attract long-term tenants who value this convenience.

3. Modern Kitchens

The kitchen is often the heart of the home, and a modern, well-equipped kitchen can increase a property’s appeal significantly. Consider updating countertops to granite or quartz, installing stainless steel appliances, and adding a stylish backsplash. These upgrades not only enhance the aesthetic appeal but also improve functionality, making the property more attractive to potential tenants.

4. Smart Home Technology

Incorporating smart home technology can set your property apart from the competition. Features like smart thermostats, keyless entry, and smart lighting systems not only provide convenience but also improve energy efficiency and lower energy bills. Tenants are increasingly looking for these modern amenities, and they can justify higher rental rates.

5. Outdoor Spaces

This is another of the top-requested amenities from the Industry Report. Outdoor spaces are highly desirable, especially in urban areas where space is at a premium. Consider adding or upgrading patios, balconies, or communal gardens. Providing outdoor furniture, grills, and even fire pits can create inviting spaces for tenants to relax and socialize, enhancing the property’s appeal.

6. Storage Solutions

Ample storage is a big selling point for rental properties. Built-in closets, shelving units, and basement storage spaces can make a property more functional and attractive. Tenants appreciate having enough space to store their belongings, and this can lead to longer lease agreements and higher satisfaction rates.

7. Flooring Upgrades

Old, worn-out flooring can be a major turn-off for potential tenants. Upgrading to durable, easy-to-clean flooring options like hardwood, laminate, or luxury vinyl can make a big difference. These materials not only look great. They stand up to wear and tear, reducing maintenance costs in the long run.

8. Fresh Paint and Finishes

A fresh coat of paint can do wonders for a rental property’s appearance. Opt for neutral colors that appeal to a wide range of tenants. Additionally, updating finishes like door handles, light fixtures, and cabinet hardware can give the property a modern, cohesive look without breaking the bank.

9. Enhanced Security Features

Safety is a top priority for tenants, and according to the Industry Report, enhanced security features can make a property more attractive. Consider installing security cameras, better lighting in common areas, and secure entry systems. These upgrades not only provide peace of mind for tenants but add value to the property, too.

10. Pet-Friendly Features

Many renters have pets, and pet-friendly features can make your property stand out. Consider adding pet amenities like a dog park, pet washing station, or pet-friendly flooring. These features can attract a broader range of tenants and increase occupancy rates.

11. Energy-Efficient Windows

Replacing old windows with energy-efficient ones can significantly reduce heating and cooling costs. This not only makes the property more attractive to tenants but also lowers utility bills, which can be a selling point for potential renters.

12. Open Floor Plans

Open floor plans are highly desirable. They create the illusion of a larger space and allow for flexible living arrangements. Consider removing non-structural walls to create a more open, airy feel. This renovation can make the property more appealing to a broader range of tenants.

13. Fitness Facilities

On-site fitness facilities are a top amenity for many renters, according to the Industry Report. If space allows, consider adding a gym or fitness center with modern equipment. This can be a significant draw for health-conscious tenants and justify higher rental rates.

14. Community Spaces

Creating communal spaces where tenants can gather and socialize can enhance the sense of community within your property. Consider adding a lounge area, game room, or co-working space. These amenities can improve tenant satisfaction and retention rates.

15. Sound-Proofed Walls

No one wants to hear their neighbor’s TV late at night, or their dog barking early in the morning. On the flip side, no renter wants to tip-toe around their apartment for fear of disturbing the neighbors. Sound-proofed walls, one of the top amenities from our Industry Report, give tenants the peace of mind.

Keep in mind that each property is unique, so tailor your renovation strategy to meet the specific needs and preferences of your target market. With thoughtful planning and execution, these renovations can transform your rental properties into highly desirable, profitable investments.

Are you looking for more insights on how to succeed in property management? Check out the full Industry Report to learn about market trends, owner and renter insights, and property managers’ goals for 2025.

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