Rule of Thumb when spending renovations to increase rents?

[Adam Juodis]

We all know the 1,2% when it comes to renting. How about a rule on the return you can get on improving/rehabbing a rental unit to raise rents, is there a general rule for that?

For example, I have a multifamily of 3 units that are renting each for $850. The interior serves its purpose, but is very dated. If I put $15,000 of rehab into each unit, installing modern rental-grade cabinets, granite countertops, nice laminate flooring, stainless steel appliances, modern light fixtures, new plumbing fixtures, etc., is that worth getting $250 extra rents per unit?

The additional rents for the rehab price would pay itself off in 5 years, and it would of course attract a more desirable tenant. Thoughts?