Owners See Value in Tenant-Funded Upgrades
Landlords are allowing select upgrades that enhance rental appeal, strengthen long-term value and encourage lease renewals.
NEW YORK — Wealthy renters are increasingly customizing luxury rental homes, and many landlords are encouraging the practice to add long-term value to the property.
Affluent tenants are investing in upgrades, such as lighting, home offices, built-ins and design finishes, at their own expense. These improvements are cost-neutral for property owners.
“Landlords will base their decision on whether the tenant’s improvements add value to their rental property,” Ashley Reidy Quinn, a real estate agent with Coldwell Banker Warburg in New York City, told the Wall Street Journal. “It’s the tenant making the expenditure, so the improvement comes at no cost to the landlord.”
Landlords who are investors in the property are more likely to approve these kinds of upgrades, compared to owners who plan to return to the property in the future. Even structural changes can gain approval if they make the property desirable to future tenants.
Real estate professionals recommend property owners have clear lease riders that outline approved changes, restoration requirements and contractor standards.
Dane Austin, owner of Dane Austin Design, says, "When tenants are invited to personalize their space, they tend to treat it with greater care and pride and are often more likely to renew their lease."
Source: Wall Street Journal (12/17/25) Friedman, Robyn
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