In Singapore’s ever-evolving property market, savvy investors are constantly seeking ways to maximise returns.

With rising interest rates, increased competition in the rental space, and higher expectations from tenants, understanding how to increase rental income has become a key strategy for long-term success.

While rental pricing is often dictated by location and market trends, one controllable and high-impact factor stands out: strategic renovation.

In this article, we explore how home renovation for rental can significantly improve rental yield, share practical renovation strategies tailored for Singapore homes, and highlight regulatory and tax considerations that landlords should be aware of.

Whether you’re renting out an HDB flat, a condominium unit, or a landed property, these tips will help you optimise your investment returns.

Why Renovation is Key to Increasing Rental Income

First Impressions Matter

In a saturated rental market, properties that stand out – both visually and functionally – are more likely to attract quality tenants quickly. Many tenants make their decision within minutes of viewing a property.

A freshly renovated space with thoughtful design elements gives the impression of a well-maintained, premium home, justifying a higher rent and reducing vacancy periods.

Renovation Delivers Better ROI Than Arbitrary Rent Increases

Attempting to raise rent without upgrading the property can backfire, leading to longer listing times and higher tenant turnover.

On the other hand, small-to-medium renovations, especially in high-touch areas like kitchens and bathrooms, often deliver strong returns by increasing perceived value.

A well-executed home renovation for rental not only enhances the aesthetics but also improves functionality, energy efficiency, and durability – all of which are appealing to tenants.

Work With ROI-Focused Renovation Experts

Not all renovations yield the same results. Working with professionals who understand the rental market ensures your upgrades are aligned with what tenants actually want, and what they’ll pay for.

Visionary Interior specialises in investor-focused renovation strategies that balance design appeal with budget and compliance, helping landlords make decisions that deliver measurable returns.

Renovation Tips to Boost Rental Yield

Upgrade Kitchen and Bathrooms

The kitchen and bathroom are often deal-breakers for tenants. These are the spaces where design and functionality must work seamlessly. For example:

• Kitchens: Consider modular cabinets, quartz countertops, energy-efficient appliances, and soft-close drawers. Adding a washer-dryer combo or built-in microwave can increase convenience for tenants.

• Bathrooms: Rain showers, water-saving fixtures, and anti-slip tiles improve both safety and luxury.

If you're renovating a HDB flat, you’ll need to comply with specific structural and material regulations. You can refer to the Building and Construction Authority (BCA) and URA guidelines for more details.

Tip: Renovating wet areas like these can be disruptive and complex. Plan for these upgrades between tenancies to avoid loss of rental income.

Create a Functional Layout

The right layout can transform a unit’s usability and value.

• Studio to 1-bedroom conversion: Installing sliding partitions or raised platforms to create sleeping zones can transform a studio into a more functional living space.

• Open-plan living: Removing unnecessary walls creates an illusion of space, making the unit feel more modern and spacious.

• Work-from-home spaces: In a post-COVID world, tenants value homes that support productivity. Incorporating study nooks or multifunctional furniture (like a dining table that doubles as a desk) can add serious value.

Invest in Durable, Low-Maintenance Finishes

Tenants rarely treat a property like their own, so durability matters.

• Flooring: Vinyl and SPC (Stone Plastic Composite) flooring are waterproof, scratch-resistant, and affordable alternatives to wood or tiles.

• Countertops: Quartz countertops are more resistant to stains and heat than laminate or marble.

• Paint & walls: Washable wall paint and vinyl wall panels can reduce repainting costs between tenancies.

Long-term, these materials reduce maintenance costs and vacancy periods – two critical elements for improving ROI.

Add Smart Features (Tech Adds Value)

Modern tenants are willing to pay a premium for convenience and energy efficiency. Adding simple tech features can increase perceived value without significant cost.

• Digital locks: Provide convenience and eliminate key management hassles.

• Smart air-conditioning systems: Models with timers or remote access can reduce electricity waste.

• High-speed Wi-Fi readiness: Structured cabling and additional power outlets in key areas support a more connected lifestyle.

• Motion sensor lighting: These, along with energy-efficient LED installations, also enhance appeal while lowering utilities.

More Tips on How to Increase Rental Income

While renovation plays the largest role, a few additional strategies can further enhance your rental yield:

• Offer furnished or partially furnished units: Especially popular with young professionals, expats, or corporate tenants. Furnished homes can command 10–20% higher rent.

• Keep the unit well-maintained: A clean, well-kept home justifies higher rent and encourages tenants to stay longer.

• Provide added amenities: Items like a washer-dryer, dishwasher, bike storage, or even a Nespresso machine can enhance appeal.

• Allow pets: Charging a small pet premium can open your unit to a wider pool of tenants.

• Flexible lease options: Offering 6-month leases or corporate tenancy arrangements increases your flexibility and may yield higher monthly rates.

These upgrades, especially when paired with strategic renovations, work synergistically to increase your rental returns.

Regulatory and Tax Considerations in Singapore

Tax Deductions for Renovations

Under IRAS, landlords can claim deductions on certain expenses, including maintenance and renovation works, provided they are for rental purposes and not capital improvements. These deductions can significantly offset renovation costs.

Licensing and Subletting Rules

Short-term rentals (under 3 months) are generally not allowed in Singapore for both HDB and private residential properties. The Urban Redevelopment Authority (URA) enforces this strictly.

For HDB flat owners, always refer to HDB’s subletting guidelines to ensure your property is eligible for rental and that you meet the minimum occupation period (MOP) before leasing it out.

Renovations must also adhere to HDB’s approved list of works, including restrictions on hacking walls or replacing waterproofing membranes. Review HDB’s renovation rules to avoid penalties or work delays.

Renovate Smart to Maximise Returns

Understanding how to increase rental income in Singapore goes beyond setting a higher rental price.

Strategic, targeted renovations aligned with tenant expectations and regulatory frameworks can significantly boost rental yield, reduce vacancy periods, and attract better tenants.

If you're looking to upgrade your investment property, work with an expert partner who understands both design and ROI, such as Visionary Interior.

Visionary Interior offers custom renovation solutions for investors, combining aesthetic appeal, functional layouts, and compliance with Singapore’s housing standards to help you maximise your rental potential.