when updating a rental property

[Jeff Libby]

Aside from the standard updates like new appliances, flooring, paint, etc, how do you determine what to upgrade in a rental? 

I'm assuming you'd base it off what type of people you want living there, what the potential rents are, but does it go deeper than that?

Does anyone add premium upgrades such as recessed lighting under kitchen cabinets, in home speakers? 

Also, is it ever worth going all out with expensive appliances and other updates instead of basic ones ex. hard wood floors vs cheaper alternatives

[David DuCille]

appeal to 90% of the market 90% of the time.  So you want to keep things in line with what a certain area expects.  If you are in the ghetto, don't start spending a ton of money putting in higher end finishes (I openly admit to putting granite and stainless appliances in my ghetto rental, however granite is VERY cheap here in FL and basic stainless appliances from scratch and dent stores are not that much more expensive and add a lot of impact.)

I have another rental in a nice, blue collar neighborhood.  I could have put in pot lights but that neigborhood doesn't really call for it.  People would love it but they wouldn't want to pay extra for it. I simply changed out the old 1980's light fixtures for a nice modern light fixtures and ceiling fans.  

Backsplashes are a great DIY project to add impact.  it can be as simple as subway tiles with a strip of glass mosaic running through and it gives a higher end appearance to the kitchen while only costing a couple hundred bucks to do.

they make led under cabinet lights that you simply touch by hand and they attach with a magnet so they can even be pulled off to use like a flashlight.  they are dirt cheap and don't require you to wire them to a switch.  

for me personally, the higher end products are also about durability.  Here in florida, we have very sandy soil.  Carpets and laminate flooring get wrecked fast.  The sand scratches the **** out of hardwood and laminate.  Tile is the way to go.  it's a little more expensive than the other options but it will last forever and when a tenant turns over, I'll only have to mop floors not replace them.