Thinking about renovations for your rental property?

You may be wondering which improvements and updates will maximize your ROI.

We’re here to tell you.

While it’s tempting to sink money into flashy upgrades, smart investors know that pragmatism is essential. We know that a well-chosen renovation will help you attract reliable tenants, justify higher rents, and preserve or even increase your property’s long-term value. Poorly chosen updates, on the other hand, can drain your budget without adding meaningful income or equity.

Here’s where to start.

Our Summary:

Evaluate the market and the upgrades that tenants value most.
Renovated kitchens and bathrooms are always appealing.
Tenants expect at least a little bit of smart home tech when looking for a rental home.
Energy efficiency delivers serious ROI when you consider savings on utility costs.
Curb appeal counts. Renovate the landscaping.

Know Your Market: What Do Tenants Value?

The first step to maximizing ROI with renovations is understanding your target renters. San Jose and Santa Clara County are home to a large population of professionals working in tech and related industries. This tenant base tends to prioritize:

Modern, functional design over luxury finishes.
Technology integration, especially smart home features.
Energy efficiency and eco-conscious living.
Low-maintenance homes that fit busy lifestyle

Tenants want convenience, sustainability, and a sense of modern living. Upgrades that speak to these values will give you a competitive edge in attracting long-term renters willing to pay higher rents.

Kitchens and Bathroom: Still the Heavy Hitters

When it comes to ROI, kitchens and bathrooms consistently rank as the best investments for rental properties. But the goal isn’t necessarily to create a luxury showcase. Instead, focus on

Durable, attractive materials. Quartz countertops, quality laminate flooring, and ceramic tiles stand up to tenant use. You don’t need the bamboo floors or the granite.
Neutral, modern finishes. Clean white, gray, or wood tones appeal broadly and won’t go out of style.
Energy-efficient appliances. Tenants appreciate lower utility bills, and you gain marketing leverage by listing “Energy Star appliances” in your rental ads.
Updated lighting. Bright, modern light fixtures immediately make spaces feel fresh and modern.

In bathrooms, think about sleek vanities, low-flow toilets, and water-saving showerheads. Even small changes, like replacing dated faucets and adding good ventilation, can significantly boost appeal and ROI.

Smart Home Tech: Meeting Tenant Expectations

Smart home features are no longer a novelty, you might have noticed. In our market especially, they’re increasingly expected. Integrating the right technologies can set your property apart, especially for tech-forward renters.

You don’t have to completely overhaul your property. Start small and simple, with smart locks that improve security and reduce the hassle of lost keys for both you and your residents. Invest in smart thermostats so tenants can control energy usage intuitively.

High-speed internet is essential, even if you’re not providing it yourself. Make sure your rental property has the necessary wiring or fiber connectivity options that will allow tenants to connect easily and quickly.

We also love video doorbells as an upgrade. It’s a simple addition that renders value for peace of mind.

A renovation towards smart home technology will deliver the ROI you hope it will. This is the future of renting, and such features will quickly attract good tenants and make your property more valuable.

Energy Efficiency as an Attractive Renovation

Energy-efficient renovations often deliver strong ROI because they benefit both you and your tenants. In most of California, sustainability is highly valued, and green features can boost property value long-term.

Consider these renovations:

Dual-pane windows. Improve comfort, reduce noise, and lower energy costs.
Insulation and sealing. Often overlooked, but critical for reducing heating and cooling expenses.
Solar panels. While the upfront cost is higher, properties with solar stand out in Silicon Valley. Some investors even use solar as a selling point to attract eco-conscious tenants.
LED lighting. A simple, inexpensive upgrade that modernizes the property instantly.

Market your rental as “energy-efficient,” and you’ll appeal to tenants who value both sustainability and savings.

Curb Appeal: First Impressions Count

In a competitive market, you need your rental property to make a great first impression. Simple upgrades here go a long way. Think fresh exterior paint or siding. Give your front door a modern look and improve your entry lighting. Drought-resistant landscaping, particularly important given California’s water restrictions, can also be an ROI-friendly upgrade. Xeriscaping with native plants reduces maintenance while keeping the property attractive.

Flooring and Paint: High ROI Basics

Some of the best returns come from the simplest updates. Replacing worn carpets with durable flooring, such as luxury vinyl planks (LVP) or laminate, makes your rental property easier to maintain and more attractive to tenants. LVP, in particular, has the look of hardwood with the resilience needed for rentals.

A fresh coat of neutral paint is another low-cost, high-impact investment. Stick with light tones to make rooms feel open and modern.

Renovation Trends to Watch in Santa Clara County

Looking ahead, several trends are shaping how investors should approach renovations in Santa Clara County and the surrounding markets:

Accessory Dwelling Units (ADUs). With housing demand so high and tenants looking for more affordability when it comes to their living options, ADUs are a popular way to maximize property income. If your lot allows, consider building an ADU for additional rental revenue.
Flexible living spaces. Tenants working remotely want layouts that accommodate home offices. Creating a small nook or converting unused space into a study can set your property apart.
Sustainable materials. Beyond energy efficiency, tenants increasingly prefer eco-friendly finishes like concrete flooring or recycled countertops.

For rental property owners in San Jose and Santa Clara County, the key to maximizing ROI lies in choosing renovations strategically. Focus on upgrades that tenants value most, which are modern kitchens and baths, smart home technology, energy efficiency, and durable finishes, while avoiding costly improvements that don’t add rental income.

This is our general take on where your renovations will attract the most ROI for your investment property. But we’d love to take a look at your specific property or your portfolio as a whole to make some specific recommendations that fit the unique needs of your rental. Contact us at Aborn Properties, and we’ll help you increase earnings and profitability.