Before you replace cabinets or order new countertops, answer one question first: are you selling this property or renting it? That decision should shape the entire renovation budget. A buyer and a renter look at the same house with different expectations, and the upgrades that pay off for one often don't pay off for the other.
In this video, Chris Knight and Michael Taylor of Red Door walk through five common renovation decisions and explain how each one changes depending on your exit strategy.
Kitchen Cabinets: Paint for a Rental, Replace for a Sale
The kitchen is one of the first areas any prospect looks at, whether they are touring to buy or to rent. That makes it a natural starting point.
If you're renting
Unless the cabinets are destroyed, the answer is usually paint, refinish or refurbish. Don't replace them. Dated oak cabinets with a coat of white paint look significantly better, and the change costs far less than new boxes and doors.
If you want to go a little further, adding crown molding to the tops of the cabinets is an inexpensive detail that makes the kitchen look more finished.
If you're selling
For a sale, lean toward replacing rather than repairing, especially as the price point rises. A buyer in the $250K to $400K range is more likely to notice that cabinets are simply painted oak. Buyers tend to be pickier than renters because they are deciding whether they want to live with the kitchen long term, not for a lease term.
If the cabinets are in bad shape and you're selling, the kitchen is one of the biggest draws for a buyer, and replacement is likely to return its cost.
Flooring: Spend More on a Rental, Not Less
This is the one that surprises owners. Michael says he will often spend more on flooring for a rental than for a sale.
If you're renting
The priority for a rental is durability. The question isn't how the floor looks on day one; it's how it holds up over one, two, three and five years of tenancy. Carpet wears out and has to be replaced, and replacing it between tenants is expensive.
That's why Red Door's approach for a rental is to install LVP (luxury vinyl plank) throughout the entire house. The upfront cost is higher, but it is a one-time investment that saves money over the long run.
If you're selling
For a sale, depending on the price point, LVP on the main level and carpet in the bedrooms is typically acceptable and expected by buyers. That combination can save several thousand dollars compared with LVP everywhere, and the buyer, not you, carries the long-term wear.
Tubs: Reglaze Instead of Replace for a Rental
Tub reglazing is something many owners never consider, but it is one of the most effective ways to control a bathroom budget.
If you're renting
Many owners assume a worn tub or surround must be replaced. The surround itself is cheap, often $200 to $400. The real cost is the labor to remove the old one and install the new one.
Reglazing costs in the range of several hundred dollars rather than several thousand, and it can save $2,000 to $3,000 compared with a replacement. For a rental, Red Door reglazes almost every time.
If you're selling
For a sale it is closer to a 50/50 call, depending on condition. The reason to replace is to add a nicer feature, not to swap one plastic surround for another. If you are trying to position the home above the market, Michael's recommendation is a new tub with a tile surround rather than another plastic insert.
Countertops: Solid Surface Usually Wins Either Way
This is the one category where the recommendation is largely the same for both strategies.
If you're selling
Solid surface countertops, granite or quartz, are close to non-negotiable at almost any price point. Buyers expect them.
If you're renting
There are cheaper options. Laminate (Formica) has improved, and HD laminate can look good. If the existing countertops are in acceptable shape, keep them; there is not much you can do to resurface a countertop, so the decision is really keep or replace.
But if you do have to replace them, solid surface is worth considering even for a rental. Kitchens are usually small, and solid surface has become relatively affordable. In an average rental home, the difference over laminate might be an extra $1,000 to $1,500.
Two reasons that money tends to be well spent:
- Marketing. The kitchen is the number one area prospects look at, judge and click on in listing photos. Bright quartz or granite photographs far better than old, dingy laminate.
- Durability. It only takes one hot pan set down on laminate to ruin it. You will have a security deposit, and other factors come into play, but you are still replacing the countertop. For a rental, durability wins almost every time.
Lighting: Splurge for a Sale, Keep It Basic for a Rental
Lighting is the category with the biggest difference between the two strategies.
If you're selling
Most homes have only a few statement fixtures: perhaps pendant lights over the kitchen, a dining room light and an entry chandelier. That is two to four pieces in an average home. Lighting design has come a long way, and in a vacant home with no furniture, a fixture can become the focal point of a room.
For a sale, plan on spending several hundred to a few thousand dollars on lighting. It is a modest total that has an outsized effect on how a home shows.
If you're renting
For a rental, this is a corner worth cutting. Simple fixtures that cost around $10 for two are fine. Renters don't weigh lighting the way buyers do. Replace anything broken or badly outdated, since a basic new fixture is inexpensive.
One exception: when replacing a bedroom light, put up a ceiling fan with a light kit. Ceiling fans are something renters notice and value.
Questions to Ask Before Approving Any Upgrade
Before approving a renovation item, run it through a short checklist:
- Is it necessary for safety, function or condition?
- Will it improve rental performance or the likely net sale outcome?
- Can cleaning, repairing or refreshing achieve the same goal for less?
Decide on the strategy first and build the budget around it. An attractive, durable rental doesn't need every upgrade you would make to sell, and a home going to market may need finishes a rental never would. If you're weighing whether to rent or sell, our Indianapolis property management team can help you scope a make-ready budget that fits the plan.
Frequently Asked Questions
Should I replace or paint kitchen cabinets before renting my house?
Unless the cabinets are destroyed, paint or refinish them. White paint on dated oak cabinets makes a significant difference, and crown molding is an inexpensive extra. Replacement makes more sense when you're selling, especially at higher price points.
What flooring is best for a rental property?
Red Door recommends LVP throughout the entire house for a rental. It costs more upfront, but it avoids repeatedly replacing worn carpet between tenants. For a sale, LVP on the main level with carpet in bedrooms is usually acceptable.
Is tub reglazing worth it compared with replacement?
For a rental, almost always. Reglazing costs several hundred dollars rather than several thousand and can save $2,000 to $3,000 compared with replacing a tub and surround, where labor is most of the cost.
Are granite or quartz countertops worth it in a rental?
Keep existing countertops if they're in good shape. If you must replace them, solid surface typically adds only about $1,000 to $1,500 in an average rental, photographs better and holds up to hot pans that would ruin laminate.
How much should I spend on lighting before renting or selling?
For a sale, plan several hundred to a few thousand dollars on two to four statement fixtures. For a rental, basic inexpensive fixtures are fine, though swapping bedroom lights for ceiling fans is worth doing.
Video Transcript
Chris Knight: Before you replace those cabinets or the countertops, have you decided whether you're selling or whether you're renting? That decision should shape what your renovation budget actually looks like.
One of the most common areas that a prospect is going to be looking at is going to be your kitchen. Let's talk about it.
Michael Taylor: If you're going to sell it, you most likely need to lean towards replace versus repair. It's going to depend, of course, on the price point that you're at. The higher price point that you're at, the more likely that you're going to need to replace.
However, if you are looking at renting, unless those cabinets are destroyed, the answer is probably paint, refinish, refurb. Don't replace, just paint them.
You would be amazed at how much better a home looks. You go in there and it has all those terrible oak cabinets. You slap a little bit of white paint on that and that changes it significantly. And if you want to go a little extra, you could even put some crown molding on it to kind of jazz it up just a little bit, like a nice little feature that doesn't cost very much.
The higher you get, the more that you need to look at replacing. To kind of speak out of both sides of my mouth, it can change it for a rental by, like I said, slapping some white paint on those oak cabinets. But if you're a discerning buyer and you're in that, say, 250 to 400 category, you're going to be like, hey, these cabinets are just painted oak cabinets, and I can tell that.
And you have a little bit more, not sophistication, but you're maybe a little bit more picky because you're buying it instead of renting. So you're like, hey, do I want to live like this? It just depends on the situation, on the style of the cabinets, what they actually look like. But again, I'm probably going to lean towards replacing it if I'm looking to sell it.
Chris Knight: Yeah, if they're in bad shape and you're looking to sell your property, the kitchen is going to be one of the highest attraction points for your buyer. You probably should consider replacing. You're going to get your money out of it, more than likely, on the return.
Michael Taylor: Yep. Yep.
Chris Knight: All right, let's get into the next one here, which again is one of the most common things, obviously. That's why it made the discussion here, that a buyer or a renter is going to be looking at, and that's going to be flooring. Mike, if you're deciding to rent, what's your thought process going to be when it comes to flooring?
Michael Taylor: I'm actually going to probably spend more money on flooring if I'm renting it versus if I'm selling it.
Chris Knight: Interesting.
Michael Taylor: Yeah, the reason why is because I am more concerned about durability if I'm renting it, right? And how long I can make this last. So my upfront flooring cost is going to be more because I'm going to put LVP in the entire house versus if I am selling.
Chris Knight: Hundred percent.
Michael Taylor: I would probably do LVP. Again, it depends on the price point, but I'm going to do LVP probably on the main level. And then I could probably get away with carpets in the bedroom areas, which is going to save you several thousand dollars for sure. And that's acceptable, that's normal, that's what people expect.
But if I'm thinking about a rental, I am thinking about one year, two years, three years, five years down the road. I don't want to have to replace that carpet every single time. Carpet does get worn, and it does have to be replaced, and it is expensive. So it's kind of a one-time investment up front to save money in the long term. So I'm going to spend a little bit more money and I'm going to do LVP throughout the entire house if it is a rental.
Chris Knight: All right, let's get into the next one here. This one is going to be one I think a lot of people haven't considered or aren't even thinking of, and that is going to be tub reglazing or replacement. We've reglazed a lot of tubs in our time. So let's talk about this. If I'm renting it, Mike, what am I considering when it comes to the bathroom, or specifically the tub situation?
Michael Taylor: A lot of people think, well, I've got to replace it because it's a tub surround. The tub surrounds themselves are cheap. What, two, three, four hundred bucks? But it's the labor to get them in and to get the old ones out.
So instead of replacing it, what you really need to think about, especially if you are renting it, is reglazing it instead of replacing it. That can save you literally two to three thousand dollars right there. Reglazing it is relatively inexpensive. I want to say it's in the order of several hundred instead of several thousand. So I am 100% reglazing if I am renting versus selling. If I'm selling, maybe it's about fifty-fifty, to be honest with you. Depends on how bad it is.
Chris Knight: I'm certainly going to add some additional consideration into replacing the entire thing if I'm selling the property, right? You want this thing to look to the nines.
Michael Taylor: The reason to replace would be to add a nicer feature, like rip out that plastic surround, maybe do some tile to be a little bit more marketable.
Chris Knight: Love it.
Michael Taylor: Things like that. So I probably wouldn't replace it with another plastic surround unless it was in really, really bad shape. What I would do if I was selling and trying to be above the market is I would replace it, put a nice tub in there, and do a tile surround. That's what I would do.
Chris Knight: So let's get into the kitchen countertops. If I'm renting, what are the considerations that I might have with the countertops? What kind of options do I have with countertops, Mike? And if I'm considering selling, same question.
Michael Taylor: Yeah. Well, let me just start off with the easy one. If you're considering selling, 100% you've got to replace them, and 100% they need to be solid surface. So whether that's granite or quartz, no question about it. It almost doesn't even matter the price point. People just absolutely want solid surface countertops.
Chris Knight: Yeah, agreed.
Michael Taylor: With renting, I would argue that you can get away with other options. You can get away with Formica. They make some really nice Formica. They have HD Formica that looks really, really good.
I would actually challenge that on this one. I'm always about saving money and I always want to do the least expensive thing. But you do have to look into marketability as well, right? And people's expectations. If I have to replace the countertop, well, one, I'm looking to keep it if I can. There's really not a lot of resurfacing a countertop. So it's either keep or replace. I'm going to lean towards keep if I can.
If I'm going to replace, I'm probably going to replace it with solid surface, to be honest with you, because it's so relatively cheap nowadays and it's such a small area typically.
Chris Knight: Durable.
Michael Taylor: The price difference between a Formica and a solid surface is really not that much for the bang that you get for your buck. So maybe it's an extra, I don't know, a thousand bucks, maybe fifteen hundred dollars in your average rental home. That's probably money well spent.
Going back to our first point, the kitchen is the number one area that people are going to look at, the number one area that it's going to get judged on, the number one picture that they're going to look at. And if you have an old, dingy Formica countertop versus a nice bright white quartz or granite, I think that's a thousand or fifteen hundred dollars well spent. On this one, I'm going to go solid surface, selling and renting.
Chris Knight: Yeah, okay. I love that take. And let me just add, because it came to mind, to your point, if you're renting out the home, you want to consider the solid surface because it only takes one time for that tenant to lay a hot pan on that non-solid surface, and guess what? You're replacing the countertops. You'll have a security deposit, there are other factors in play here, but you're replacing it at that point. Just go with the durability route. If it's renting, durability wins almost every time.
Our last thing that we're going to talk about here is actually something that I'm certain a lot of people don't even think about, and it's not a super high cost when you're considering selling or renting, and that's going to be the lighting. So if you're renting, what's the consideration, Mike? If you're selling, what's the consideration? Is there a difference? Let it rip.
Michael Taylor: Huge difference in this one for me. Absolutely huge difference. If I am selling, I'm going to spend some money on lighting, let me tell you something. Because there's only a few pieces. So we're talking about maybe some kitchen pendant lights, if that's there. Definitely some sort of dining room light, maybe a chandelier, an entrance chandelier. So we're talking about two to three to four pieces, maybe, in your average home. But those can really be statement pieces.
And lighting has come a long way over the last few years. They're almost art at this point.
Chris Knight: Absolutely.
Michael Taylor: And especially if you have a vacant home, there's nothing to look at. There's no furniture. A lighting fixture can be kind of the main component of a room, so it's super, super important. So if I'm selling, a hundred percent, I am upgrading. I am spending a good amount of money on lighting, probably more than people would think. Several hundred to thousands of dollars on lighting, for sure, is going to be the budget for a sale.
Renting, totally opposite story. I'm doing those nipple lights that are ten dollars for two at Home Depot. I just don't think it's as much of a factor. I don't think that people look for that. It's just not as much of a factor if you're looking to rent. So that is definitely a corner that I'm cutting if I am renting versus selling, is the lighting. Absolutely, 100%.
Chris Knight: Yeah, the only thing I'm going to add to that is if you are renting, yes, obviously you're replacing broken or super outdated lighting. It's inexpensive just to replace it with a new fixture.
Michael Taylor: Yeah, of course.
Chris Knight: But also, if you're replacing a light fixture in a bedroom, put a ceiling fan up. Replace that light fixture with a ceiling fan light fixture. I would 100% do that. It's a huge consideration for those who are deciding to rent the home.
So before an owner approves an upgrade, there are things that you have to ask. Is this necessary for safety, function, or condition? Obviously, right? That's question one. Will it improve rental performance or the likely net sale outcome? All of these things that we mentioned absolutely will. Can cleaning, repairing, or refreshing achieve the goal? These are all the considerations that we're running through here.
So decide on the strategy before the renovation budget. An attractive rental may not need every upgrade you would consider for a sale. That's it.
