You do not need a full refurbishment to make a rental worth more. A handful of well-chosen jobs, usually done between tenancies, can raise the rent you can justify at the next review, shorten voids and attract tenants who stay longer. This guide ranks budget improvements by the return they usually bring, explains how improvements interact with the new rent increase rules, and shows which costs you can claim against tax.
Key takeaways
- Fresh neutral decoration, good lighting and a clean, updated kitchen and bathroom bring the biggest return for the least money.
- Energy improvements lower tenants’ bills, help your EPC and prepare you for EPC C by 2030.
- Rent can now only be raised once a year with a Section 13 notice, and a tribunal can check it against the market. Improvements are the honest way to support a higher figure.
- Like-for-like replacements are usually a tax-deductible expense; genuine improvements are capital costs.
- Match the finish to your local market. Over-improving rarely pays back.
Highest-return improvements on a budget
1. Decoration
Walls in a light, warm neutral, white woodwork and a scrubbable matt or eggshell finish photograph well and are easy to touch up between tenancies. Use one colour throughout so leftover paint matches every room. Our guide to decorating between tenancies covers when it is worth repainting and what tenants can be charged for.
2. The kitchen
If the cabinet carcasses are sound, new doors and handles change the look for a fraction of the cost of a new kitchen. Add a new worktop, a modern tap and a tiled or panelled splashback. Replace tired white goods with energy-efficient models, and keep the receipts, as replacing them like-for-like is usually tax-deductible.
3. The bathroom
Regrouting and resealing the bath and shower, a new shower head or electric shower, a modern mirror cabinet and a new toilet seat make a bathroom feel cared for. A humidistat extractor fan is the most useful upgrade here: it reduces condensation and mould, which also protects you legally.
4. Flooring
Worn carpet is one of the quickest ways to lose a good applicant. Luxury vinyl tiles or good laminate in kitchens, hallways and living rooms last much longer than carpet and are easier to clean between tenants. Keep carpet for bedrooms, or where a lease requires it in flats. See our flooring guide for rental properties.
5. Lighting, heating and energy
Swap dated fittings for LED ceiling lights, add a programmable thermostat and thermostatic radiator valves, and top up loft insulation. These cost little, cut tenants’ bills, and can move your EPC rating. That matters because the minimum standard is rising to EPC C for all tenancies by 1 October 2030; see our EPC requirements guide. In HMOs, a smart thermostat can control costs where bills are included.
6. Kerb appeal
Tenants judge the property from the street and from the first photo. Paint or replace the front door, fit clear house numbers and an outside light, clear gutters and weeds, and make gardens low-maintenance with gravel, paving or a simple lawn.
Small extras tenants value
- Extra sockets with USB ports in the kitchen and bedrooms.
- A good broadband connection, or at least confirmation of which providers serve the address.
- Storage: built-in wardrobes, shelving or a shed.
- A space to dry clothes, such as a rotary line, a tumble dryer or an airer, which also helps prevent condensation.
- Blinds or curtain poles already fitted.
Improvements and rent increases under the Renters’ Rights Act
Since 1 May 2026 you can only raise the rent once a year, using a Section 13 notice with two months’ notice. The tenant can ask the First-tier Tribunal to decide the market rent, and it cannot set a figure higher than you proposed. Improvements you have made, with photos and invoices, are the clearest way to show a higher rent is fair. Plan bigger jobs for void periods or just before your annual review, and agree access with the tenant in writing if they are in occupation.
How to prioritise your budget
- Compliance and repairs first: gas, electrical, alarms, damp, and anything that would make the home unfit.
- Things tenants see in photos: decoration, kitchen, bathroom, flooring.
- Things that cut running costs: insulation, heating controls, efficient appliances.
- Nice-to-haves only where comparable properties have them.
Look at the five or six nearest similar properties on Rightmove or Zoopla, both let and unlet. Bring your property up to the standard of the ones that let fastest, and stop there. Our guide to reducing void periods covers listing and pricing.
Tax: repairs versus improvements
| Type of work | Example | Usual tax treatment |
|---|---|---|
| Repair or like-for-like replacement | Repainting; replacing a worn kitchen with a similar standard one; replacing a cooker | Revenue expense, deductible from rental income |
| Improvement | Adding an extension, a new en-suite, or a much higher-spec kitchen | Capital cost, deductible from the gain when you sell |
Replacing domestic items such as furniture, white goods and carpets in a let property usually qualifies for replacement of domestic items relief. See our guide to allowable expenses for landlords, and check with an accountant for larger jobs.
Don’t over-improve
Granite worktops, designer fittings and pale carpets rarely raise the rent enough to pay for themselves, and they cost more to repair. Choose durable, mid-range finishes that are easy to replace, and keep a note of the paint colours, tile ranges and flooring you used so repairs match.
Written by The Landlords Portal Team and updated in November 2026. Applies to private rentals in England. This is general information, not tax or legal advice.
Frequently asked questions
What adds the most value to a rental property?
Fresh neutral decoration, an updated kitchen and bathroom, and durable flooring usually bring the best return for the money, because they make the biggest difference in listing photos and viewings.
Can I raise the rent after improving the property?
Yes, but only once a year using a Section 13 notice with two months’ notice. The tenant can challenge it at the tribunal, which will look at market rents for similar properties.
Are rental property improvements tax-deductible?
Repairs and like-for-like replacements are usually deductible from rental income. Genuine improvements are capital costs that reduce your capital gain when you sell.
Template pack from Landlords Portal
Run every inspection properly: the Property Inspection Kit
Dated evidence of the property's condition protects you in repair, damp and deposit disputes. This kit gives you every document for an inspection, written for landlords in England.
- 24-hour notice letter and tenant repair report form
- Room-by-room checklist, inspection report and photo log
- Follow-up letters, plus an Excel tracker for gas safety, EICR and EPC dates
