Refurbishing a building before letting it: which spend pays back and which does not

The right question is not how much it costs to refurbish a building, but how quickly each euro comes back. In Vigo we often see expensive works that do not move the rent and light upgrades that lift it by 25%.

Works that do raise the rent

• Bathrooms and kitchens: the first thing a tenant checks and the strongest driver of price per square metre.
• Energy efficiency: windows, insulation and heat pumps cut turnover and support higher rents for student and mid-term lets.
• Layout: gaining one usable bedroom is often the best-return move in large old flats.
• Presentable common areas: the entrance hall, stairs and lighting shape the perception of the whole building.
• Styling and home staging: in furnished and short-term letting, coherent furniture raises the nightly and monthly rate.

What usually does not pay back

• Luxury finishes in mid-rent neighbourhoods: the market will not pay for them.
• Oversized building services well beyond the property's real use.
• Cosmetic facade works with no protected value while the rest of the building stays run-down.

How we approach it

Before quoting, we calculate the target rent of each unit and only approve items with an estimated payback. Then we execute with local trades and hand the building over ready to operate. More on refurbishment and styling in Vigo and building management.