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The right amenities can help you attract tenants, reduce turnover, and command higher rent. Here are 10 practical upgrades that can add value to your rental property.
The Top 10 Amenities Renters Want
1. A Good Pet Policy
We write a surprising amount about pets and how much people love their affordable furry friends. And it’s maybe because I wish I had a dog to call my own. Or maybe I’m just a product of my society. The point being the generation that is most renting now is the millennial generation. And they l.o.v.e. LOVE their animal pals. Some 73% of millennials own pets. Having a pet policy that is flexible, smart, and friendly will help you, secure tenants.
That being said, this doesn’t mean you shouldn’t be smart about it.
Read: The Smart Landlords Pet Policy
2. Air Conditioning
Large parts of the US are hit by hot weather throughout the summer months. But in many states having an air-con unit isn’t legally required. So, it would make sense that when looking at a property many renters actively are on the lookout for aircon. No one wants to be sweltering half the year!
3. An Outdoor Area
So this one may be something you can do little about. But it may be that your outdoor space could be a huge draw for prospective tenants. When it comes to having an outdoor space tenants love to have somewhere where they can go sit when it’s sunny out, enjoy a beer, relax with friends, or just with a book. This could mean a patio, roof-garden, decking, yard, or even just a small balcony.
It is well worth putting a little bit of effort into making this space nice – and importantly make it low maintenance.
4. Laundry
No one wants to have to traipse around the corner, or jump in the car and drive to a laundromat once a week to go get their laundry done. Having an in-unit washer/dryer is a major plus for renters. Failing that just one or two in the building – you could even make them paid. Whilst not as convenient as an in-unit one it’s still a highly desirable amenity. I’ve known people that would never even consider renting a place without access to a washer.
5. Parking
Imagine this. You come home from a long day’s work. It’s rush hour, the traffic has you stressed. You just want a glass of wine. But you get home and everyone’s beaten you to the punch. The street is lined with cars. You drive block after block looking for space and eventually there it is. You pull in exhausted but jubilant and look around. You suddenly realize you don’t know this neighborhood. You check Google maps – that can’t be right a 20-minute walk home…
Having an assigned space, whether it’s a garage or just easily available parking on-street is an amenity that can help people avoid ever going through this again – it’s not surprising then that it’s a very popular amenity.
6. Dishwasher
Dishwashers are a nice convenience to have. But more than that – people really hate washing up by hand, and they will pay extra for this convenience.
7. Walk-in Closet
A luxury, but one that a lot of people gush over and is sure to grab the attention of all but the most Spartan of tenants.
8. Furnished
We mentioned before that millennials are the largest generation of renters. This is for various reasons but in summary, millennials appreciate the freedom of being able to up and leave – to move to their new job at a moment’s notice, they don’t like being tied down to a house.
Lugging furniture around is a real inconvenience for people that are constantly moving house so it shouldn’t come as a surprise that furnished apartments are popular.
9. Smart Home
This feature typically won’t be a deciding factor for most renters, but if you have smart features, it’s a bonus, especially for millennial renters who love technology. The Internet of Things (IoT) allows devices to “talk” with each other, which makes it possible for technology to work for us.
Temperature controls that allow homes to heat up before you come home, a place to plug in your electric car, and lights that go on as you enter the room are all examples of what smart devices can offer. The nest is the leading provider of smart thermostats, but there are others for less money.
10. Hardwood floors
Any experienced renter will know that carpet is a nightmare. It absorbs smells, they become impossible to clean and those tipsy wine-fuelled evenings can easily turn into bloodbaths that will cost you your deposit. A hardwood floor on the other hand is easy to clean. They last longer, they smell less and you no longer have to worry about clumsy guests spilling beverages everywhere.
Related: Top 9 Renovation Ideas to Improve the Value of Your Investment Property
Which Amenities Increase Rent the Most?
Not every amenity pays for itself. Some justify a real rent premium and help you fill vacancies faster, while others cost more to install and maintain than they ever bring back. Renter surveys point the same way: in the NMHC and Grace Hill Renter Preferences Survey, in-unit laundry and air conditioning rank as the most sought-after apartment features.
High-ROI amenities
- In-unit laundry is consistently one of the best-returning amenities. Tenants will often pay 15% to 20% more to avoid a laundromat or shared laundry room. On a unit that would otherwise rent for $1,500 a month, that's an extra $225 to $300 a month. With installation typically $800 to $2,000, it can pay for itself in about 3 to 9 months.
- Parking commands a premium wherever street parking is scarce. Depending on the market, a dedicated space can add $50 to $200 a month, and more in dense cities such as San Francisco, Boston or Seattle.
- Central air conditioning is close to essential in warm climates and can support a 10% to 15% premium. Installation is more expensive, typically $3,000 to $8,000, but in Sun Belt markets a property without A/C can sit empty for months.
- A pet-friendly policy costs little to offer and widens your tenant pool. Pet rent of $25 to $50 a month per pet, or a pet deposit where your state allows it, usually covers the extra wear and tear, and pet-friendly units tend to lease faster. See our guide to pet deposits, pet fees and pet rent.
Amenity ROI comparison
The premiums below are national estimates. Payback periods assume a base rent of $1,500 a month. Check them against comparable listings in your own market before you spend money.
Moderate-ROI amenities
These help you stay competitive but rarely justify a big rent increase on their own:
- Dishwashers are standard in many markets now, but can still add 5% to 10% where they're uncommon.
- Private outdoor space such as a balcony, patio or yard can add 10% to 15%, especially for families.
- Extra storage beyond basic closets can support a 5% to 10% premium in space-constrained urban markets.
- Smart home features such as smart thermostats, keyless entry and smart lighting appeal to younger tenants and can support 5% to 10%.
How your market changes the value
- Urban markets: parking, in-unit laundry and outdoor space earn the biggest premiums because they're scarce. A parking space in Manhattan might be worth $300 to $500 a month; the same space in suburban Oklahoma City might add $25 to $50.
- Suburban markets: families pay for yards, garage space, updated kitchens and good school districts.
- College towns: students value furnished units, fast internet and being close to campus over luxury extras. Keep costs low and focus on the basics.
- Warm climates: air conditioning stops being an amenity and becomes a necessity. Without it, a property is hard to rent at any price.
How to work out an amenity's ROI
Before you add an amenity, compare the extra rent it will bring in with what it costs:
Annual ROI = Annual rent increase ÷ (Installation cost + First-year upkeep) × 100
For example, a $600 dishwasher with $25 a month of upkeep that lets you charge $75 more a month returns $900 ÷ ($600 + $300) × 100 = 100% in the first year. If an amenity can't return at least 20% a year after upkeep, look for a cheaper alternative. Don't forget the hidden return: an amenity that fills a vacancy two weeks sooner is worth that half-month of rent too.
What Counts as an Amenity?
An amenity is a feature or service that adds comfort, convenience or enjoyment beyond what a property needs to function. For landlords, the right amenities justify higher rent, cut vacancy and help keep good tenants.
Types of amenities
Amenities FAQs
Are amenities included in rent?
It depends on the amenity and the lease. In-unit laundry, air conditioning and access to a shared gym or pool are usually built into the base rent. Parking ($50 to $200 a month), pets ($25 to $50 a month per pet) and storage units ($50 to $100 a month) are often charged separately. The lease should say which amenities are included and which cost extra.
Do I legally have to provide amenities as a landlord?
No. You must meet your state's habitability requirements, such as running water, heat, electricity and a safe structure, but amenities beyond that are optional. Once you promise an amenity in the lease or the listing, though, you're generally expected to keep providing and maintaining it.
How much do amenities cost to maintain?
In-unit laundry ($10 to $20 a month), dishwashers ($20 to $30) and smart home devices ($20 to $40) are cheap to run. Air conditioning ($50 to $100 a month) and outdoor spaces ($50 to $150) cost more. Pools ($1,200 to $2,500 a year), fitness rooms ($500 to $1,000 a year) and extensive landscaping ($100 to $300 a month) are the most expensive. Include upkeep in your ROI sums.
Can I charge tenants extra for amenities?
Yes. Parking, pets and storage are the most common add-on charges. Spell out each fee in the lease agreement. Most in-unit amenities, such as laundry or air conditioning, are priced into the base rent instead.
Are amenity costs tax deductible for landlords?
Generally, yes. Ongoing upkeep, such as pool maintenance, landscaping or utilities for common areas, is usually deductible in the year you pay it. Installing a new amenity is usually a capital improvement that you depreciate over time instead. See our rental property deductions checklist, check with a tax professional, and track every amenity expense with rental property accounting software.
How do I decide which amenities to add to my rental?
Start with comparable listings in your area to see what tenants expect and what competing units offer. Then run the ROI sum above for each option and prioritize amenities that return at least 20% a year, help fill vacancies faster and suit your target tenants. Low-cost upgrades such as fresh paint, new fixtures or a smart thermostat are usually worth doing before expensive additions like a pool.