Bathroom Renovations That Increase Rent (And Ones That Waste Money)

Here’s something I’ve seen catch landlords off guard over and over: bathroom condition influences rental decisions more than almost any other single factor in your property.

Think about what happens during a showing. Your prospect walks through the living room, checks out the kitchen, peeks into the bedrooms. They’re doing mental math the whole time. But when they step into the bathroom? That’s when gut feelings take over.

A dated bathroom makes your whole property feel dated. An updated bathroom makes everything else look better by association.

The question isn’t whether bathroom renovations matter. They do. The real question is: which renovations actually put money back in your pocket?

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Why Bathrooms Punch Above Their Weight in Rental Properties

Your bathroom probably takes up less than 5% of your rental’s total square footage. But it has an outsized impact on how tenants perceive your entire property.

First impressions stick. A prospect who sees a dingy, yellowed bathroom has already started looking for reasons to say no. One who sees a clean, updated space has started looking for reasons to say yes. I’ve watched tenants overlook all kinds of issues in other rooms after seeing a sharp-looking bathroom.

Daily experience matters. Your tenants use that bathroom multiple times every single day. A space that bothers them every morning motivates them to leave when the lease expires. A space they actually enjoy? That encourages renewal—and renewals are where you make your money.

Quality signals extend everywhere. An updated bathroom tells tenants you care about maintenance. A neglected one tells them… well, you can guess what they’re thinking about the furnace and the roof.

How to Make Small Bathrooms Feel Bigger (Without Knocking Out Walls)

Let’s be honest: most rental bathrooms in Canada are small. That galley-style bathroom in your Toronto condo or the cramped en suite in your Calgary townhouse? That’s just reality.

But you can make them feel less like a closet without major construction.

Declutter the visual field. Clean lines, simple designs, and organized storage make a huge difference. Every bottle visible on the counter makes the space feel smaller. Built-in storage keeps necessities accessible without eating up visual space.

Go light on colour. White, pale grey, soft blue—light tones reflect light and reduce visual weight. I’ve seen investors try to get fancy with dark accent walls in small bathrooms. Don’t. Save the drama for larger spaces.

Max out your lighting. Well-lit rooms feel larger. Period. Brighter fixtures, additional light sources, better bulbs. If you’ve got a window, make sure it’s not blocked. Natural light does more for spatial perception than any design trick.

Use mirrors strategically. Mirrors create the illusion of depth. Consider going larger than the standard medicine cabinet mirror—covering the entire wall above the vanity makes a noticeable difference. I’ve seen investors add a second mirror on an opposite wall and basically double the perceived space.

Choose glass over shower curtains. Clear glass enclosures connect your shower space with the rest of the bathroom visually. The whole room reads as larger than when an opaque curtain chops it in half. Yes, glass costs more upfront. Yes, it’s worth it in most markets.

The Investor Renovation Mindset (It’s Not Your Dream Bathroom)

Here’s where a lot of landlords go wrong: they renovate like homeowners.

You’re not building your dream bathroom. You’re creating attractive, functional space that justifies rental premiums while controlling costs and choosing materials that withstand tenant use.

Durability beats luxury. That Carrara marble counter looks stunning in your Pinterest board. It also scratches easily, stains from hair products, and costs three times as much as solid surface material that looks nearly as good and lasts twice as long.

Broad appeal beats personal taste. Neutral colours and timeless designs work for more tenants than bold fashion statements. Let your tenants personalize with towels and accessories. Your job is to provide a clean canvas.

Cost-effectiveness beats premium brands. Mid-range fixtures from Delta, Moen, or Pfister provide attractive appearance and reliable performance without the Kohler or Grohe price tag. Your tenants won’t notice the difference—and they definitely won’t pay extra for it.

Bathroom Upgrades That Actually Boost Your Rent

These are the renovations I’ve seen move the needle on rental income:

Updated fixtures. New faucets, showerheads, toilets, and hardware transform the appearance for $500-$1,500 in materials. Modern water-efficient fixtures also cut utility costs if you’re covering water. A new toilet alone can change how the whole room feels.

Fresh finishes. New paint ($100-$200), updated lighting ($150-$400), and contemporary accessories ($100-$300) make spaces feel renovated without major construction. Total cost under $1,000, and tenants see “updated bathroom” in your listing photos.

Quality tile work. Porcelain and ceramic tiles resist moisture and wear while looking sharp at $3-$8 per square foot. Classic white subway tile never goes out of style—I’ve seen it in rentals from Vancouver to Halifax, and it works everywhere.

Adequate storage. Built-in shelving, a proper medicine cabinet, and vanity storage address practical needs tenants actually care about. A pedestal sink looks pretty but offers zero storage. Most tenants will take the storage.

Good ventilation. A proper exhaust fan prevents moisture damage and mold. It’s not glamorous, but it’s essential—especially in humid climates like southern Ontario or the BC coast. Budget $200-$400 for a quality fan with installation.

Bathroom Upgrades That Rarely Pay Off

These are the renovations I’ve watched landlords regret:

Spa features. Heated floors sound amazing. Steam showers seem luxurious. Jacuzzi tubs look impressive. But in most Canadian rental markets? They rarely command proportionate rent premiums. A tenant in Edmonton paying $1,800/month for a two-bedroom isn’t going to pay $2,100 because you added heated floors.

High-end natural stone. Granite and marble cost significantly more than quartz or solid surface alternatives without generating proportional rental increases. Save the natural stone for your own home.

Trendy designs. That bold emerald green tile or matte black everything might look cutting-edge right now. In five years? It looks dated. Stick with neutrals that age gracefully.

Expanding square footage. Bumping out walls to make a bathroom bigger rarely generates returns that justify the construction cost. Work with what you’ve got.

Refresh vs. Full Renovation: How to Decide

Not every bathroom needs to be gutted. Here’s how to figure out what your situation actually requires:

A minor refresh works when: The basic elements—tub, toilet, vanity—remain serviceable, but the appearance has become dated. New fixtures, fresh paint, updated lighting, and hardware replacement can dramatically change perception for under $2,000.

A full renovation makes sense when:

• Water damage exists behind walls or under flooring
• Waterproofing has failed (you’ll know from soft spots or mold)
• Layout is severely dysfunctional
• Accumulated problems exceed what patchwork can fix
• You’re repositioning the property to a premium rental tier

Here’s my rule: don’t spend full renovation money ($8,000-$15,000+) on a bathroom that just needs refreshing. And don’t try to refresh your way out of problems that require real renovation. I’ve seen investors try to paint over water damage and end up spending twice as much when they had to redo everything six months later.

Managing Your Bathroom Renovation Project

Define your scope before you start. Write down exactly what’s included and what’s not. Scope creep during bathroom projects is notorious. “While we’re in there, we might as well…” is how a $5,000 refresh becomes a $15,000 renovation.

Budget realistically. In most Canadian markets, expect to pay:

• Minor refresh: $1,500-$3,000
• Moderate update (new vanity, fixtures, flooring): $4,000-$8,000
• Full gut renovation: $10,000-$20,000+

Add 15-20% contingency because bathroom renovations frequently encounter surprises once demolition begins. That subfloor looks fine until you pull up the vinyl.

If you’re hiring contractors: Get at least three quotes. Understand exactly what’s included. Establish clear timelines with penalties for delays. Check references—specifically for bathroom work, not just general contracting.

Think about timing. Renovating during a tenancy requires careful coordination and tenant cooperation. Between tenancies gives you flexibility but extends your vacancy. Run the numbers both ways.

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Frequently Asked Questions

Make Your Bathroom Renovations Pay

Bathroom renovations offer some of the best returns available for rental property improvements—but only when you focus on what actually moves the needle.

Update fixtures. Improve lighting. Choose durable materials in neutral styles. Create clean, functional spaces that photograph well and keep tenants happy day after day.

Skip the luxury features that impress you but don’t increase rent. Match quality to your rental market. Control costs like your returns depend on it—because they do.

That’s how bathroom renovations become profit centres instead of money pits.

Written by

LendCity

Published

January 29, 2026

Tags

Value Add Renovation Rental Properties Cash Flow Investment Strategy

Key Terms in This Article

Vacancy Rate

Vacancy Rate

The percentage of rental units that are unoccupied over a given period. A critical factor in cash flow analysis, typically estimated at 4-8% for conservative projections.

ROI

ROI

Return on Investment - a measure of profitability calculated by dividing net profit by total investment. Used to compare the efficiency of different investments.

Cash Flow

Cash Flow

The money left over after collecting rent and paying all expenses including mortgage, taxes, insurance, maintenance, and property management.

Value Add Property

Value-Add Property

A property with potential to increase value through renovations, better management, rent increases, or adding units.

Purchase Plus Improvements

Purchase Plus Improvements

A Canadian mortgage program that combines the purchase price with renovation costs into a single mortgage, based on the property's after-improvement value.

Equity

Equity

The difference between a property's current market value and the remaining mortgage balance. If your home is worth $500,000 and you owe $300,000, you have $200,000 in equity. Equity builds through mortgage payments, appreciation, and property improvements.

Hover over terms to see definitions, or visit our glossary for the full list.

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