How to think about renos during a down condo market?

[Eugenia K.]

I'm planning on renting out my condo after purchasing an owner-occupied investment property, and am considering doing some renovations. While the location of my condo is strong, the finishes are dated. I'm considering doing updates like bathroom flooring, kitchen counters/backsplash, etc to modernize the space and make it more competitive to the newer construction condos in the area.

How should I think about this investment considering rents during COVID are ~30% below pre-COVID levels, and there would be wear and tear on the new finishes long before rents return to "normal"? Given long term rents are so low and I think the condo location is so strong, I'm considering giving it a go as a short term rental. How would you compare the ROI of these improvements on a long term vs short term rental?