4 Upgrades That Add Value to Your Rental Property (and What to Skip)

If you’re a landlord, you’ve probably contemplated on how to boost your rental income. The quick answer: Upgrades that will actually add value to rental property. Think of upgrades that aren’t just flashy but also add value and are worth the investment.

The right changes can increase your rental income by 5-10% and attract higher-quality tenants, but the wrong ones can end up wasting time and money.

In this article, we’ll highlight four key upgrades that will make a long-term difference and some things you should skip. At Home-n-Garden, we believe in adding  improvements to the home and garden that can improve your property’s value and maximise your return without breaking the bank.

Source: Schofields Insurance

1. Energy-Efficient Upgrades

Tenants these days are looking for energy-efficient homes. Not only do energy-saving upgrades lower tenants’ utility bills, but they also make the property more appealing to environmentally conscious renters. Energy-efficient upgrades can also improve your property’s sustainability, helping you stay ahead of future regulations.

What to Do

• Double-glazed windows: These are a must for energy efficiency. They help keep the property warmer in winter and cooler in summer, which keeps utility costs down.
• Smart thermostats: Tenants love having control over the heating and cooling. And smart thermostats with energy efficient settings help save energy and pounds.
• Low-energy lighting: Switch out old bulbs for LEDs. They last longer, use less energy and reduce overall running costs.

What to Skip

• Solar panels: Unless your property is in the right location and eligible for government grants, solar panels can be expensive to install and maintain. Solar panels can transform your home with clean energy and hence, better suited to your personal property.
• Energy-saving features that don’t align with the property: For example, underfloor heating might not be worth it if your property’s layout doesn’t support it efficiently. It’s an unnecessary upgrade for a property that doesn’t need it.

Energy-efficient upgrades aren’t just a trend, they’re becoming a necessity. They appeal to tenants who want to save money and reduce their carbon footprint.

2. Modernise the Kitchen and Bathroom

We all know the kitchen and bathroom are the deal-makers or deal-breakers for tenants. They want these areas to be functional, modern and easy to maintain. Upgrading these spaces is a smart way to increase your rental property’s appeal.

What to Do

• New faucets and modern worktops: A simple change like swapping out old, worn-out worktops or installing modern faucets can make a huge difference. It doesn’t have to be expensive to look fresh and clean.
• Water-saving taps and showerheads: These can save tenants money on water bills and they’re a great selling point. Use an experienced plumber for upgrades.
• Fresh coat of paint: A quick, affordable fix that can give the space a whole new look without spending too much.

What to Skip

• High-end, designer fixtures: Unless you’re aiming for a luxury market, fancy designer taps, sinks and marble countertops are not necessary. Tenants typically care more about functionality than luxury.
• Over-the-top bathroom or kitchen remodels: Think about the location and rent prices in the area. Going too high-end won’t make a difference if the kitchen or bathroom is over-designed for the area.

A few simple, modern upgrades can make a massive difference in these key areas without costing you a fortune. Stick to practical updates that make the space feel fresh and appealing without over-spending.

3. Don’t Overlook Practical Upgrades Like Flooring and Fixtures

While it might be tempting to splash out on designer tiles or marble worktops, tenants usually care more about how easy a property is to live in. Think durable flooring, clean lines, and fittings that won’t break in six months.

As experts from City Borough Housing in Lewisham explain:
“We often advise landlords to focus on durability and functionality. If the home is easy to live in and maintain, it’s more likely to stay profitable.”

What to Do

• Durable flooring: Vinyl or laminate flooring is a smart choice. It’s durable, easy to clean, and looks great without being expensive.
• Good quality fixtures: Go for simple, sturdy electrical fixtures that won’t need replacing every few months. Think quality over quantity.
• Neutral colour schemes – Neutral tones are the safest bet. They appeal to a wider range of tenants and give the property a modern, clean look.

What to Skip

• Expensive materials that require high maintenance: Things like marble or designer wood flooring might look nice at first, but they’re not practical for a rental property. They wear quickly, need constant care and can be expensive to fix.
• Unnecessary customisation: Unless your property is very high-end, customising flooring or fixtures might be overkill. Stick to durable and easy-to-maintain materials.

By focusing on what tenants need – durable, functional features – you’ll have a property that stands the test of time and keeps tenants happy.

4. Add Smart Home Features Make Life Easier for Tenants

Smart home features are becoming more popular, and for good reason. They make life more convenient and command 3-5% higher rents. Tenants love the idea of being able to control things like the thermostat or lights remotely, adding a modern touch to your property.

What to Do

• Smart locks: These allow tenants to unlock doors remotely, so they never have to worry about lost keys. They also add an extra layer of security.
• Smart thermostats: They let tenants control their heating, saving them energy and money while adding value to your property.
• Wi-Fi-enabled security cameras: These give tenants peace of mind, and they’re a feature many people look for these days.

What to Skip

• Over-complicated smart systems: While smart tech is great, avoid going overboard. You don’t need an entire house full of smart devices. Focus on simple, useful features that improve everyday living.
• Expensive home automation: High-end home automation systems can be hard to maintain and can scare off tenants who aren’t tech-savvy.

Smart home upgrades don’t have to be expensive or complex. Just a few simple, useful features can make your property stand out and attract higher-quality tenants.

Conclusion: Make the Right Upgrades, and Your Property Will Thrive

When it comes to upgrading your rental property, the key is to invest in what really matters. Energy-efficient features, functional kitchens and bathrooms, practical flooring, and modern smart home tech can make your property more appealing and increase its value.

Remember, tenants are looking for a place that’s comfortable, easy to maintain and cost-effective. So, stick with upgrades that add real value and avoid wasting money on things that won’t make a difference.

By making the right upgrades, your property will not only attract good tenants but will also stand the test of time, keeping you profitable for years to come.