Why you should never spend $10,000 on a bathtub for a rental property

When you're looking to improve a rental property—even if it's a townhouse that you think is "fit for a king"—it's tempting for the inexperienced real estate investor go all out on upgrades. However, the sophisticated real estate investor knows there's one expense you should always steer clear of, and that's spending $10,000 on a bathtub. While the allure of installing a high-end, spa-like tub might seem like a good investment, it’s often not the best move for a rental property. Here’s why:

1. It's a Poor Return on Investment (ROI)

One of the fundamental principles of owning rental properties is ensuring that your investments will generate a good return. While upgrading a bathroom can increase the appeal of your property and possibly justify a higher rent, spending a significant amount on something like a $10,000 bathtub doesn't provide a proportional return.

High-end tubs might make your property look fancy in photos, but they won't directly increase the monthly rent or attract tenants who are willing to pay more just for the sake of a luxury bathtub. Most tenants care more about functional features, like a clean, modern bathroom, reliable plumbing, and enough space—rather than the price tag of the tub itself.

Moreover, the cost of installing such a luxury item is substantial, and you may never fully recoup that amount. If the tub eventually needs replacement or maintenance, you’ll also bear the financial burden of repairs that may not significantly increase the property's value.

2. Your Target Market Won't Appreciate It

The tenants you're catering to likely have different priorities. Unless you're renting to extremely high-end clients who expect top-of-the-line finishes (think luxury penthouses or executive housing), a $10,000 bathtub won’t hold much value in their eyes.

Most tenants, especially in the typical rental market, are more concerned with the basics—things like how well the plumbing works, the water pressure, whether the tub or shower is clean, and if the space is functional. Spending such a large portion of your budget on a bathtub can divert money from more pressing updates that your tenants will appreciate and notice more, such as replacing worn-out countertops, refreshing paint, or installing better lighting.

3. Maintenance Costs Could Add Up

A high-end bathtub comes with higher maintenance costs. Many luxury tubs are made from materials that require specialized care, or they may come with complex built-in features such as jets or lighting that need to be serviced over time.

When tenants leave, you may find yourself spending money on repairs, cleaning, or replacing expensive components of the tub. Plus, renters often aren't as careful with luxury items as they would be in a personal home, meaning the potential for damage increases over time. If a $10,000 bathtub needs repair, the cost can be considerable, and the repair might not even add any real value to the property.

4. Tenants Won’t Care About the Price Tag

A $10,000 bathtub is, for most tenants, a “nice-to-have” item. But for the majority, it won’t make them more likely to sign a lease. People looking for a rental property typically aren't focused on extravagant luxuries—they want something that’s functional, affordable, and well-maintained.

Renters who are willing to pay a premium for a luxury tub are few and far between. Instead, most tenants would prefer a bathroom that’s clean, well-lit, and updated with standard fixtures, without the hefty price tag. They likely won't even recognize the difference between a luxury tub and a regular one unless it’s marketed specifically to them, which rarely happens in typical rental scenarios.

5. Focus on What Matters Most: Function and Value

In rental properties, it’s often better to focus on upgrades that will have a more noticeable and lasting impact. This means investing in items that improve the overall function of the bathroom or other areas of the property, rather than luxury features that only serve aesthetic purposes.

Here are a few examples of more cost-effective improvements:

• High-quality, durable flooring: Tenants will appreciate floors that are easy to clean and durable, such as vinyl or ceramic tile, which provide long-lasting performance without the high cost of a luxury tub.
• New fixtures: Replacing outdated faucets, showerheads, or lighting with modern, energy-efficient alternatives can elevate the look of your bathroom without breaking the bank.
• Fresh paint or updated cabinetry: A simple coat of paint or a new vanity can make a big difference in the overall look and feel of the bathroom.

These changes add more value to your property and are likely to be appreciated by tenants, all while keeping your expenses in check.

6. The Luxury Factor Isn’t Always Worth It

It's easy to get caught up in the idea that a luxury item will somehow make your rental stand out or justify higher rents, but in reality, it may not. Luxury features are often more of a niche market, and you may find it harder to attract tenants willing to pay a premium for such upgrades.

The money spent on a luxury bathtub could be much better allocated toward improving the overall appeal of the property in ways that attract a wider pool of renters. For example, improving curb appeal with landscaping or adding modern appliances in the kitchen could have a broader appeal and contribute to a higher occupancy rate and tenant satisfaction.

Conclusion: Stick to What Makes Sense

When it comes to rental properties, it’s essential to make smart, well-thought-out investments. While a luxury bathtub might sound like a nice addition, it's usually not worth the expense. Instead, focus on upgrades that provide value for money and are more in line with what your target market wants—things like reliable plumbing, modern fixtures, and clean, functional spaces.

The next time you consider a big-ticket item for your rental property, take a step back and ask yourself: Will this really make my property more desirable to tenants, or am I just indulging in a luxury for luxury’s sake? Often, the latter isn’t the best way to maximize your investment or the success of your rental business.