How to renovate an apartment before renting it - a complete guide

Introduction to renovation for rent

Renovation of an apartment before renting is a strategic decision that can significantly affect the profitability of your investment. A properly executed renovation will increase rents, attract quality tenants and reduce maintenance costs. In this article, we will show you how to plan, implement and maximize the benefit of the renovation.

Unlike the renovation of your own home, where personal preferences decide, with an investment apartment you have to think pragmatically: which investment will bring the highest return.

Decision on renovation

When to renovate

Signals for renovation:

• Outdated disposition (transient rooms)
• Old installations (original wiring)
• Inadequate bathroom and kitchen
• Low energy standard
• Problems with rent

When you do not need to renovate:

• The apartment is in good condition
• The target group does not require a high standard
• The costs would not bring about a corresponding increase in rent
• The location does not allow for higher rent

Types reconstruction

Complete reconstruction:

• New installations (water, electricity, heating)
• New floors and surfaces
• New bathroom and kitchen
• Change of layout
• Costs: 15,000-30,000 Kč/m²

Partial reconstruction:

• Preservation of installations
• New surfaces and painting
• Bathroom and kitchen modernization
• Costs: Kč 5,000-15,000/m²

Cosmetic finishing:

• Painting
• Minor repairs
• Floor replacement
• Costs: Kč 1,000-5,000/m²

Planning and budget

Budgeting

Rule 1-3%: Annual maintenance and improvement costs should not exceed 1-3% of the value of the property.

Calculation of return:

• Rent increase after reconstruction: 3,000 Kč/month
• Annual benefit: 36,000 Kč
• Investment: 300,000 Kč
• Return: 300,000 / 36,000 = 8.3 years

Recommended return:

• Ideal: 3-5 years
• Acceptable: 5-8 years
• Risky: over 8 years

Investment priorities

Sorted by return:

1. Bathroom (highest priority)

• Key to tenant decision-making
• High impact on rent
• Payback: 3-5 years

2. Kitchen

• The second most important room
• Functionality and aesthetics
• Payback: 4-6 years

3. Floors

• Great visual impact
• Long service life
• Payback: 5-8 years

4. Windows

• Energy savings
• Comfort and aesthetics
• Payback: 8-12 years

5. Disposition

• Intervention in load-bearing structures
• High costs
• Payback: individual

Budget reserve

Always count on a reserve of 10-20% for unforeseen expenses:

• Hidden defects
• Changes in the project
• Extension of deadlines

Selection of materials

Criteria for rental

Resistance:

• High load from changing tenants
• Easy to repair
• Long service life

Maintenance:

• Easy cleaning
• Scratch resistance
• Time consuming maintenance

Neutrality:

• Universal appearance
• Unlimited time design
• Wide acceptability

Recommended materials

Floors:

• Vinyl tiles (LVT): 500-1,000 Kč/m²
• Laminate: 300-600 Kč/m²
• Ceramic tiles (wet areas): 400-800 Kč/m²

Walls:

• Washable paints: 100-200 Kč/m²
• Ceramic tiles (bathroom, kitchen): 400-800 Kč/m²

Kitchen:

• Laminate line: 30,000-60,000 Kč
• Laminate worktop: 1 000-2,000 Kč/bm
• Basic appliances: 30,000-50,000 Kč

Bathroom:

• Sanitary ceramics (middle class): 15,000-30,000 Kč
• Batteries: 3,000-6,000 Kč
• Shower: 5,000-15 Kč 000

Materials to avoid

• Carpet (unhygienic, demanding maintenance)
• Wooden parquets (susceptible to damage)
• Luxury materials (do not match the rent)
• Trendy colors (quickly outdated)

Realization of reconstruction

of craftsmen

Options:

• General contractor (manages everything)
• Individual craftsmen (you coordinate yourself)
• Combination (key work professionals, others yourself)

Selection of supplier:

• References and portfolio
• Written contract
• Time schedule
• Warranty conditions

Work schedule

Typical complete reconstruction procedure:

Week 1-2: Preparation

• Clearing the apartment
• Demolition work
• Debris removal

Week 3-4: Installation

• Electrical installation
• Plumbing
• Heating

Week 5-6: Rough Work

• Plastering and Leveling
• Ceilings
• Floor Preparation

Week 7-8: Tiling

• Bathroom
• Kitchen
• Wet Floors

Week 9-10: Flooring and Painting

• Floating Floors
• Painting
• Doors

Week 11-12: Completion

• Kitchenline
• Plumbing
• Cleaning and Finishing

Quality Control

In-progress Checks:

• Concealed Piping Before Covering
• Bathroom Drops
• Levelness surfaces

Final acceptance:

• Functionality of all devices
• Visual inspection
• List of defects to be removed
• Handover protocol

Apartment equipment

Basic equipment

Standard equipment:

• Kitchen line with sink
• Hob and oven
• Hood
• Boiler or boiler
• Sanitary equipment

Superior equipment:

• Dishwasher
• Washing machine
• Refrigerator
• Microwave oven

Furniture

Unfurnished apartment:

• Lower rent
• Less maintenance
• Wider target group

Furnished flat:

• Higher rent (+15-25 %)
• Young professionals, expats
• Higher wear and tear
• Need to change

Partly furnished:

• Compromise
• Kitchen + built-in wardrobes
• No free furniture

Specifics for rent

Installation in addition

Security:

• Safety lock
• Peephole and chain
• Smoke detectors

Practicality:

• Sufficient sockets
• USB sockets
• Quality WiFi wiring

Economy:

• Thermostatic heads
• LED lighting
• Energy-saving batteries

Design and colors

Recommended:

• White walls
• Light neutral colors
• Minimalist design
• Quality basic equipment

Not recommended:

• Bold colors
• Patterned wallpapers
• Complicated solutions
• Cheap imitation

Examples of renovations

Example 1: Cosmetic renovation

Apartment 2+kk, 50 m²:

• Painting: 15,000 Kč
• Laminate floors: 25,000 Kč
• Minor repairs: 10,000 Kč
• Total: 50,000 Kč
• Rent increase: 1,500 Kč/month
• Payback: 2.8 years

Example 2: Partial reconstruction

Apartment 2+kk, 50 m²:

• New bathroom: Kč 120,000
• New kitchen: Kč 80,000
• Floors and painting: Kč 50,000
• Total: Kč 250,000
• Rent increase: Kč 4,000/month
• Payback: 5.2 years

Example 3: Complete reconstruction

Apartment 2+kk, 50 m²:

• Demolition and preparation: Kč 50,000
• Installation: Kč 150,000
• Bathroom: Kč 150,000
• Kitchen: Kč 120,000
• Floors and surfaces: Kč 100,000
• Doors and accessories: Kč 50,000
• Total: Kč 620,000
• Rent increase: Kč 6,000/month
• Payback: 8.6 years

Tax aspects

Deductible costs

Repairs and maintenance:

• Fully deductible in the year of creation
• They do not increase the value of the property

Technical evaluation:

• Above 80,000 Kč/year
• Depreciated gradually (30 years)
• Increases the value of the property

Strategic planning

• Spread the work into more years (under Kč 80,000)
• Separate repairs from technical evaluation
• Consult a tax advisor

Conclusion

Successful renovation for rental requires:

1. Analysis - is the investment in the given location worth it?
2. Planning - realistic budget and schedule
3. Correct priorities - bathroom and kitchen first
4. Practical materials - resistance to luxury
5. Quality implementation - reliable craftsmen
6. Neutral design - universal taste

Reconstruction is an investment that should bring a measurable return. Make decisions based on numbers, not emotions, and your investment will return in the form of higher rents and happier tenants.

> Czech-law scope and editorial note: Legal, tax, accounting, tenancy, service-charge, condominium, metrology, insurance and data-protection statements in this article refer to the Czech Republic and the rules effective for the relevant date. Figures and examples are illustrative, not legal or tax advice. Verify current rules with the relevant Czech authority or a qualified adviser.