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How Much Should
Investors Spend Renovating
a Rental Property?
The right renovation budget helps investors boost value, attract quality tenants, and maximize returns without overspending.
Get a Renovation Estimate
See Sample Budgets
SECTION 1
The Renovation Budget Formula
Purchase Price
+
Renovation Budget
+
Holding Costs
+
Contingency
+
Total Basis
SECTION 2
Budget by Property Condition
Light Cosmetic
$10 – $25 / sq ft
Mostly cosmetic updates like paint, flooring, and fixtures.
​Moderate Renovation
$25 – $60 / sq ft
Kitchen and bath updates, flooring, systems, and more.
Heavy Rehab
$60 – $120+ / sq ft
Full gut or major structural and system overhauls.
SECTION 3
Budget by Property Type
Condo
$20 – $50 / sq ft
Interior upgrades and building-standard finishes.
Single-Family
$25 – $60 / sq ft
More space and systems mean higher budgets.
Townhome
$25 – $55 / sq ft
Shared walls, but often multi-level renovation needs.
Moisture-Resistant Bath Materials
Water-resistant, scratch-resistant, and cost-effective. Tile, solid-surface, and grout options that stand up to moisture.
SECTION 4
Where the Money Usually Goes
Paint
Interior and Exterior Paint
25%
Flooring
Full flooring materials and installation
20%
Kitchen
Cabinets, Counters and Appliances
20%
Bathroom
Tubs, Vanities, Tile and Fixtures
15%
Exterior
Roof, Siding, Landscaping, Etc.,
10%
Contingencies
Buffer for unexpected costs.
10%
SECTION 5
Example Budget Scenarios
Cosmetic Refresh
$15,000 – $25,000
Light updates for a quick turnover and rent boost.
View Scenario →
Full Rehab
$75,000 – $120,000+
Full gut or major rehab for maximum value.
View Scenario →
Moderate Update
$35,000 – $60,000
Kitchen + bath updates and core system work.
View Scenario →
SECTION 6
How to Avoid Overspending
Focus on improvements that tenants pay for
Know your market rent and don’t over-improve
Get quotes and compare before you commit
Build a realistic contingency of 10–15%
Plan for holding costs during renovations
Use data and comps—not emotions
Want help building the right renovation budget?
Our experts will create a custom budget for your next deal so you can invest with confidence.
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