Fort Collins is known for its highly competitive rental market. However, by upgrading your property, you can increase the value of your rental along with tenant satisfaction—the key is understanding what renters want.
At Black Bear Real Estate and Property Management, we’ve helped countless Fort Collins property owners upgrade their property for lasting benefits, including higher rental rates: here’s where we recommend you start.
Rental Trends in Fort Collins
In vibrant Fort Collins, renters increasingly expect more than just four walls and a roof. With a thriving mix of students, young professionals, and families—26% of residents are aged 20–29, well above Colorado’s average. These groups favour updated, low-maintenance homes equipped with energy-efficient features, modern amenities, and outdoor spaces. In fact, upgrades that reduce utility bills or worry-free upkeep are no longer really optional. Aligning these features with renter priorities is critical to attracting quality tenants and justifying higher rent.
Top Property Upgrades That Add Real Value
Energy Efficiency and Smart Home Features
When you upgrade your building’s energy efficiency, you’re hitting two birds with one stone: addressing Fort Collins’ eco-conscious culture and combating rising utility costs. This is a big win-win situation. Renters can feel more confident in their contribution to the ongoing climate issues while enjoying significantly less energy expenses. On one hand, this can improve tenant retention and lower the number of vacancies (lowering turnover costs). On the other hand, if you pay utilities as the owner, you’ll immediately benefit from better cash flow.
The numbers will vary by property type and location, but the data routinely shows that energy-efficient features are a smart strategic upgrade. Some of the best include:
- Attic insulation/ air-sealing: payback of 2-5 years, and a 20-year ROI of 300-600%
- Window replacement: 7-15% average annual savings, and a 20-year ROI of 50-150%
- High-efficiency HVAC: payback of 5-10 years, and a 15-year ROI of 150-300%
- Solar Panels: payback of 6-10 years, and a 25-year ROI of 200-400%
Modern Kitchens and Bathrooms
Anyone that has rented before will agree that updated kitchens and bathrooms make a world of a difference for comfort and satisfaction. There’s nothing like an old decrepit bathroom or a dingy, grimy kitchen that reminds you of the many generations of tenants that have been there and used the space before you. Yet when bathrooms and kitchens are clean, new, and inviting, the space actually begins to feel like yours.
The National Association of Realtors has found that kitchen renovations are among the highest ROIs for home remodeling, recouping 75% of the value when selling. Bathrooms tell a similar story, showing an average of 80% ROI in 2025 according to another report.
The ROI is what you’ll receive if and when you decide to sell your property, but it doesn’t factor in the the increased tenant retention (and decreased turnover costs), nor does it factor in the increased rental rates that you’ll be able to lever as a result of these highly-sought features of rental properties.
Outdoor Spaces
More and more people are recognizing the important role of outdoor spaces for mental health and overall satisfaction. According to a 2024 report, patios and decks in themselves tend to come with 70-90% ROI, whereas well-maintained landscaping can bring in 100-200% ROI purely from the significant enhancement of curb appeal. Outdoor kitchens and outdoor fireplaces both bring in about 60-80% ROI.
Coloradans love the outdoors, and having some type of access to an outdoor space in our beautiful climate is more often an expectation than a perk. If you want to attract the best tenants and keep them, you’ll want to make investments in outdoor spaces a priority. The bright side is that, compared to a property without outdoor spaces, you can certainly increase your rental rates.
Lean On the Advice of Rental Property Experts
Upgrading your property in order to justify higher rent is just the beginning of smart property management. For more insights into the Fort Collins market or to get some help with your property ownership, don’t hesitate to reach out to the Fort Collins-based team at Black Bear Real Estate and Property Management today!