Smart Strategies for Renovating a Rental Property

Around half of American homeowners are planning renovations this year, and many of those upgrades involve income-generating properties. For rental owners, the right improvements can lead to higher rent, better tenants, and fewer maintenance issues. But not all upgrades offer a strong return, which is why renovating a rental property requires a clear strategy, especially in a competitive market like Memphis.

At Reedy & Company, we’ve helped property owners grow long-term value through smart, cost-effective updates. We manage over 3,500 properties across the Memphis area, so we know what tenants want and which renovations really pay off.

In this blog post, we’ll break down the best areas to focus on, rental property upgrades to avoid, and simple changes that can boost rental appeal. Whether you’re just getting started or planning your next round of updates, this guide will help you make smart renovation choices.

Understanding the Memphis Rental Market

Renovation decisions should always be based on what renters in your area want. Memphis has its own rental trends and tenant preferences, so it’s important to align your upgrades with the local market.

Why Local Knowledge Matters

Each city is different, and what works elsewhere won’t always work here. In Memphis, tenants often value outdoor space thanks to the area’s warm climate.

Adding or improving a patio, deck, or fenced yard can make a big difference in how quickly a property rents and how much it earns. These upgrades may not matter in colder cities, but in Memphis, they often pay off.

Local insight is also important when choosing materials. For example, carpet may not be the best fit in a hot, humid climate where vinyl plank or tile floors are easier to maintain and clean.

At Reedy & Company, our team stays up to date on these details so our owners don’t have to. We help you avoid costly upgrades that don’t perform well in the Memphis market and focus on what tenants actually want.

Trends in Memphis Rentals

Modern renters in Memphis expect comfort, efficiency, and clean design. They aren’t looking for high-end finishes, but they do want homes that feel updated and practical.

That means modern kitchens with functional layouts, reliable appliances, and neutral colors. Simple upgrades like refacing cabinets or installing new countertops can make a big impact without breaking the budget.

Efficient HVAC systems are another top priority. Memphis summers are hot, and tenants will notice if the air conditioning doesn’t perform well. Replacing or maintaining HVAC systems can lead to better tenant retention and fewer complaints.

Low-maintenance materials are also in high demand. Renters want spaces that are easy to clean and hard to damage, so tile, vinyl flooring, and semi-gloss paint are great options.

By focusing on these trends, you can keep your property competitive and attract reliable long-term renters. Our team can guide you through the right updates based on your budget and goals.

Start With the Basics

Before you make big upgrades, it’s best to take care of the essentials. In rental properties, the basics matter more than style, given that tenants want homes that are safe, clean, and functional.

Fix First, Then Upgrade

Before choosing new countertops or light fixtures, make sure everything already in the home works properly. Leaky faucets, chipped flooring, or outdated wiring should be addressed first. These issues might seem small, but they can lead to complaints, maintenance requests, or even safety concerns if left untreated.

Focusing on safety and functionality builds trust with tenants and protects your investment. No one wants to move into a property only to find problems that should’ve been fixed during the renovation.

Plus, handling repairs upfront avoids more expensive fixes later. At Reedy & Company, we always recommend starting here when renovating a rental property. It sets a strong foundation for any other improvements you decide to make.

Don’t Over-Renovate

A common mistake is spending too much on upgrades that don’t match the property’s rental value. You might love luxury countertops or custom cabinets, but those finishes won’t raise the rent if they don’t match what renters in your price range expect. In fact, over-renovating can reduce your return on investment.

Focus on upgrades that deliver practical benefits. Tenants care about energy efficiency, clean design, and low-maintenance materials, rather than high-end features that drive up rent.

For example, if your property rents for $1,200 a month, it doesn’t need a chef’s kitchen or premium flooring. Keep things simple and in line with neighborhood standards.

We help our clients find the right balance. Renovate with purpose, not just style, and you’ll save money while keeping your property attractive to local renters.

Focus Areas That Add Real Value

Some upgrades do more than just look nice, as they can also help you attract quality tenants and reduce future maintenance. We always recommend that you focus on improvements that make the home easier to live in and cheaper to care for.

Kitchen Upgrades That Pay Off

The kitchen is one of the most-used spaces in any home, so even small updates here can make a big impact. If your countertops are dated or damaged, replace them with durable and affordable options like laminate or butcher block. These materials offer a clean look and stand up well to everyday use.

Next, consider updating your appliances, as energy-efficient models appeal to tenants who want lower utility bills and modern features. You don’t need top-of-the-line versions – just reliable and clean appliances. Adding new cabinet handles is another simple change that updates the look without a full renovation.

These cost-effective renovations make the kitchen feel more modern, functional, and welcoming, all of which help when marketing your rental.

Bathroom Improvements

Bathrooms don’t need to be fancy, but they should feel clean, updated, and efficient. You can start with low-flow faucets, toilets, and showerheads to reduce water usage and help tenants save on bills. These eco-friendly upgrades are affordable and show that you care about long-term maintenance.

Old lighting and outdated mirrors can make a bathroom feel small and dark. Replacing them with modern versions can instantly brighten the space and make it feel larger. If your tiles are stained or dull, re-grouting can refresh the look without needing a full replacement.

For flooring, consider updating to vinyl, which is water-resistant and easy to clean. At Reedy & Company, we often guide clients through these small but meaningful bathroom changes when carrying out rental property upgrades.

Flooring Choices

Carpet might seem like a quick fix, but it wears down quickly and stains easily. Instead, choose vinyl plank or laminate flooring. These options are more durable, easier to clean, and hold up better to tenant turnover. They also offer a sleek, modern look that appeals to a wide range of renters.

Neutral tones work best and they suit many furniture styles and help the space feel open and inviting. It’s a good idea to stick to light browns, greys, or natural wood looks, as these styles stay in demand and make your property easier to market. Plus, installing the same flooring throughout the unit creates a consistent, high-quality appearance.

It’s a smart investment that lowers long-term maintenance costs and boosts appeal with Memphis renters looking for comfort and functionality.

Exterior Touches That Tenants Notice

Next, improving your property’s exterior can make a strong first impression and attract tenants quickly. These upgrades don’t have to be expensive, but should focus on cleanliness and curb appeal.

Boost Curb Appeal on a Budget

Small changes can make a big difference when tenants first see your rental. A good place to start is by painting the front door a fresh, inviting color. It’s an affordable way to add character and draw attention.

Next, trim overgrown bushes and add a layer of mulch to flower beds. This makes the yard look neat and cared for without much effort.

Power washing the siding and walkways removes dirt and grime, making the whole property look cleaner and newer. Also, keep the lawn regularly mowed and edged.

If maintaining grass is difficult, think about switching to low-maintenance landscaping, like gravel or drought-resistant plants. These options save water and reduce yard work while still looking tidy.

Outdoor Spaces Add Value

Outdoor areas matter a lot in Memphis, where the weather encourages time spent outside. Even a small patio or deck can make your property more attractive to renters. These spaces give tenants a private spot to relax or entertain guests.

Adding a fence is another upgrade to consider. It offers privacy and is especially appealing to renters with pets or children. Good fencing can set your rental apart from others nearby.

Finally, check that outdoor lighting is working properly. Well-lit walkways and entrances improve safety and add a welcoming touch for tenants coming home after dark. Together, these exterior upgrades help your rental stand out and bring real value.

Energy Efficiency Is a Smart Investment

As we’ve mentioned above, energy efficiency is a smart investment that benefits both you and your tenants. It lowers utility bills and makes your property more attractive in a competitive market.

Lower Bills Help You Attract Tenants

One of the easiest ways to improve energy efficiency is to replace older windows with newer, double-pane models. These keep heat in during winter and out during summer, helping tenants save on heating and cooling costs. If new windows aren’t an option, adding weather stripping around doors and windows can reduce drafts.

Insulation is another important factor. Proper insulation in walls and attics keeps the temperature steady inside the home, making it more comfortable and energy-efficient. Installing LED lighting also reduces electricity use and lasts much longer than traditional bulbs.

Smart thermostats are a modern upgrade that tenants appreciate. They allow easy temperature control and can lower energy bills by adjusting heating and cooling when the home is empty.

Eco-Friendly Is Highly Marketable

Many renters now look for homes with energy-saving features. Promoting these upgrades in your rental listings can help attract tenants who value lower utility bills and environmentally friendly homes.

Highlighting your property’s green features shows you care about sustainability and tenant comfort. This can set your rental apart and increase interest in your property.

Final Tips for Smarter Renovations

Smart planning is key to successful renovations. These final tips will help you save money and get the best results for your rental property.

Always Get Quotes Before You Start

Before beginning any work, it’s important to get multiple quotes from contractors or suppliers. Comparing prices and timelines helps you avoid surprises and ensures you get the best value.

Don’t guess the cost or how long renovations will take. Planning ahead makes the process smoother and helps you stay on track.

Set a Budget and Stick to It

Create a clear budget for your renovation project. Include a small cushion for unexpected expenses, but know your limits. Sticking to your budget prevents overspending and keeps your finances healthy.

Also, it’s important to keep track of all costs as you go. This way, you can quickly spot if something is getting too expensive and adjust your plans.

Think Long-Term ROI

Focus on renovations that will give you the best return on investment. Every dollar you spend should help you get higher rent, rent the property faster, or reduce maintenance costs over time. As we’ve noted above, you should avoid expensive upgrades that won’t pay off in the long run.

Working with us makes this easier. We understand the local market and can guide you on which renovations make the most sense for your rental property. Our expertise helps you save time and money while increasing your property’s appeal and income potential.