Given that over a million households rent in Massachusetts, thousands of properties, concentrated in the larger cities of Boston, Cambridge, Somerville, and surrounding areas, require maintenance and upgrades by property managers and landlords.
Some of the top goals of a property manager are to provide safe housing and protect the property investment. To accomplish this, careful consideration must be given to which property upgrades deliver the best return on investment and attract high-quality renters. Thoughtful upgrades can go a long way toward improving tenant satisfaction and property value.
Not all renovations are created equal. Some deliver higher return on investment and positive impacts on renters’ lives, while others are not worth the investment. Let’s examine some of the best return on investment upgrades you may want to choose for your rental property.
What Is Return on Investment (ROI) and How Is It Calculated?
Return on investment is a measure of a rental property’s profitability. The concept is calculated as the ratio of profit to the original investment. Simply put, it is a percentage that measures how much money you made or lost on an investment compared to how much it cost. It is often casually referred to as getting “more bang for your buck.”
Many free online ROI calculators can help you determine whether the upgrade you are considering is worth the investment. 
How to Get More Bang For Your Buck
Whether you have just acquired a rental property or are in a transition period between tenants, you may be considering renovations. Here are some that will give you the best return on your investment, according to the 2026 State of the Property Management Industry Report.
Install Smart Home Technology
Last month, in our blog, “Save Energy, Save Money: Essential Upgrades for Rental Properties,” we explored Smart Home Technology innovations that property managers may want to consider for their next renovation. From energy-efficient appliances to automated thermostats, tenants and property managers alike appreciate the savings on their utility bills and the upgrades’ ability to reduce overall operating expenses.
Tenants are always receptive to smart technology and security upgrades. It helps maintain the property’s safety. Modernizations such as outdoor motion sensors, smart locks, security systems, and intercom systems enhance access security.
Upgrade Lighting
Lighting may seem like a small aspect of any rental, but even minor changes can make a significant visual impact, such as replacing outdated fixtures or adding energy-efficient LEDs. Adding dimmer switches, under-cabinet lighting, and enhanced outdoor lighting can make a rental unit feel cozier and more customized than apartments with traditional overhead lighting.
Kitchen and Bath Updates
Kitchens and bathrooms typically deliver high returns on investment, but it is not common for property managers to take them down to the studs and start from scratch. Instead of gutting these two highly utilized rooms, consider making small changes that make a big difference, such as painting the cabinets, adding high-quality countertops, replacing fixtures, or upgrading the plumbing. Low-flow faucets and showerheads can be aesthetically pleasing and reduce water bills.
Flooring
There is an age-old debate about which type of flooring is best in a rental unit. Do property owners choose durable, easy-to-maintain hardwood, laminate, or high-quality vinyl, or opt for carpeting, which is often a good insulator and soundproofing option for multistory homes? The price of hardwood may be out of budget, but carpeting may need to be cleaned and replaced frequently, depending on the level of traffic and the care tenants take in maintaining their floors.
In general, most experienced property managers choose flooring options that withstand wear and tear and reduce long-term maintenance costs, such as laminate or vinyl flooring.
All Over Interior Painting
Paint is a low-cost, high-ROI option for property managers looking to spruce up a rental unit before advertising it to tenants. Paint has transformative power, turning a dark, dingy unit into a bright, clean, well-maintained space. Walls, ceilings, and trim in a neutral shade can change a unit’s overall appearance and make it more appealing to renters.
Maximizing the return on your rental property investment requires a thoughtful and strategic approach to upgrades. By focusing on high-ROI improvements like smart technology, lighting, kitchen/bath updates, and durable flooring, you can attract and retain high-quality tenants while safeguarding your asset. For personalized advice and to discuss which upgrades make the most sense for your specific properties, we encourage you to talk to our team of experts at Thayer & Associates for more ideas and a customized consultation.