Carpet or laminate? It's complicated.

[Laurie Williamson]

I usually make decisions quickly, but I'm stuck on this one... I need to replace the flooring for 3 bedrooms in my rental property. They currently have carpet, but it's pretty worn out. I am trying to decide whether to put in new carpet (at a cost of about $1500) or wood-look laminate (about $3500). I've heard luxury vinyl tile is great, but I already have wood-look laminate in two living areas, one of which I just installed a couple years ago, so I'm trying to match what I already have, if I do a wood look. Here are the factors I'm weighing:

• Cost is the main factor here, because I also need to replace the kitchen tile. It will cost about $1500. 
  So to replace both floors at once, I'm looking at either $5000 or $3000.

• This property cash flows about $5,000/year *before expenses* — so that's a whole year of profit, if I do the higher end option.

• Now, let's talk expenses. Last year, I spent nearly $10,000 on repairs to this property. I had to replace the garage door, get some major plumbing done, paint the exterior, replace some appliances... it got a little out of hand.

• If price wasn't an issue, I would prefer the laminate, because it looks nicer, would last longer, and my tenant would like it better. However, it's almost double the price, and I'm not sure if it will be worth it. I could replace the carpet twice and still spend less.

• My lease says no dogs, but I'm pretty sure there's a dog in there. If I get carpet, it's probably going to get peed on.

• However, I am concerned about damage to the more expensive floors, too. The new floor I had put in for her a couple of years ago already has scratches on it, and the transition piece is broken off. Other things in the house have been damaged, as well. I kind of expect the carpet to need replacement, and would actually be ok with replacing it after she leaves, since it is cheap... but I would be upset if the nice, new wood-look floors were ruined.

• Her lease is up for renewal, and I'm considering giving her two options: Keep the same rent, and get new carpet, or raise the rent, and get wood-look laminate. I'm replacing the tile either way, because it has some broken tiles and needs to be replaced. Property values are rising in this neighborhood, and I am currently charing below-market rent because I am a sucker. 

Thanks for any advice!