The Best Property Upgrades to Boost ROI in Coastal Rental Markets

Candice Blair • July 10, 2025
The Best Property Upgrades to Boost ROI in Coastal Rental Markets - Article Banner

Coastal areas are different, right? Cities and towns like Laguna Niguel and Dana Point offer something special when it comes to homes and properties. We’re talking about ocean views, sea breezes, outdoor space, and all the amenities that come with coastal living. Anyone renting out a home close to California’s seaside understands that tenants in these areas have pretty high expectations. To increase rental values and attract good residents, it’s important to meet their demands. 


So we’re meditating on property upgrades and how they can boost the return on investment (ROI) an owner or investor earns on their rental. There are always the usual improvements and renovations that matter, such as fresh paint and modern fixtures, and we’ll talk about those. But in a coastal rental property, there are specific things you can do to really help your investment stand out in a competitive and demanding market. 


As
local property management experts in coastal areas such as Laguna Niguel, Aliso Viejo, Dana Point, Laguna Beach, and Mission Viejo, we have had quite a bit of success in helping owners earn more on their properties and attract better tenants by making targeted improvements. 


It’s important to be strategic. It’s important to have a budget. It’s especially important to know who your
potential tenants are and what they’re looking for.


Coastal Tenants in Southern California 


In a competitive market, who are the tenants looking to rent a home on the coast, and what exactly are they looking for in a home?


Typically, tenants who want to live near the water are qualified to do so. To rent a luxury condo with ocean views requires a certain level of
financial comfort. These tenants are typically high earners who have high expectations and are willing to pay for a little bit of luxury. With the rise of remote working, a lot of local tenants are living on the coast because they can, even while working for companies that are based elsewhere.


Take a look at some of the priorities that tenants bring with them when they’re looking for a coastal rental home close to the water.

Proximity to the Beach — Without the Noise Outdoor Living Space
Not everyone will necessarily want to live steps from the sand, but for a lot of tenants in our area, beach access remains a serious priority. Tenants crave walkable or bikeable locations, but also want enough distance to avoid the crowds and late-night noise of bars and restaurants. A quiet street just a few blocks inland often hits the sweet spot for the tenants seeking homes in Laguna Niguel and surrounding areas. Southern Californians live for the outdoors. With year-round weather that’s conducive to al fresco dining and hobbies like hiking, boating, fishing, and golf, people want a bit of the outdoors in the homes they choose. Patios, balconies, rooftop decks, or even small fenced yards are in high demand. Bonus points for ocean views or a space to entertain friends under the sunset. It’s easier to rent out a home that has a bit of green space.
Air Conditioning and Modern Amenities A Clean, Modern Aesthetic
While the coastal breeze helps, a lot of tenants in this area have noticed that summers are getting hotter. Renters are increasingly seeking homes with central air or at least modern cooling options. Updated appliances, in-unit laundry, and smart home features also make a property stand out. Coastal renters favor clean lines, neutral palettes, and light-filled spaces. Hardwood floors (or quality vinyl alternatives), quartz countertops, and updated bathrooms attract long-term tenants who want comfort and style. Residents looking to make a home on the coast want to feel like they’re living on the coast.

Let’s not forget some basics, like parking and storage. Anyone who has spent any time coming and going from California’s beaches can tell you that parking is quite a commodity near the beach. Off-street or garage parking is a major perk, especially in neighborhoods where public parking is scarce. Extra storage for surfboards, bikes, and beach gear is a big plus for your potential tenants, too.


Southern California coastal tenants want to enjoy the beach lifestyle without sacrificing convenience, comfort, or peace of mind. Blending charm with practical upgrades is the key to staying competitive in this market. Think about these desires when choosing the projects you want to take on.


Hard Surface Floors and Why They Are a Must-Have for Coastal Tenants

Hard Surface Floors

Flooring plays a key role in the livability, cleanliness, and long-term maintenance of any rental property in any market. Swapping out traditional carpeting for hard surface flooring can be one of the most beneficial upgrades an owner makes, especially in a beachside location. 


Here’s why making the switch is not only smart but also a great investment for both your tenants and your ROI.

  • Sand, Salt, and Carpets Don’t Mix


Coastal living comes with plenty of perks that tenants love, such as sunshine, ocean views, and salty breezes. But, there’s also a challenge or two that both owners and tenants are likely to encounter. The main challenge, of course, is environment and its impact on flooring. Sand and salt are constant companions for tenants coming in from the beach. These elements wreak havoc on carpeted floors. Sand gets ground into carpet fibers, causing wear and tear, while salt can leave behind stains and residue that are difficult to remove. Even frequent vacuuming can’t keep carpets completely clean in a beachside rental.


That’s why we love hard surface flooring as an improvement for coastal rental homes. 


It doesn’t have to be high-end bamboo. Think of materials like vinyl planks, laminate, tile, or engineered hardwood, which are far more practical solutions. These surfaces are easy to sweep and mop, making it much more convenient for tenants to keep the property clean after some time at the beach. A quick sweep or wet mop can eliminate sand and salt, preserving the cleanliness and appearance of your floors with far less effort.


  • Healthier Living for Coastal Tenants


Carpet is notorious for trapping allergens such as dust mites, mold spores, and pet dander. In a humid coastal climate, these issues can be even more pronounced. Moisture from the air or tracked in from outside can get absorbed into carpet fibers, creating an environment ripe for mold and mildew growth. This can trigger allergies, worsen asthma symptoms, and generally reduce indoor air quality.


Hard surface floors don’t harbor allergens the way carpets do. They’re hypoallergenic, easier to disinfect, and they contribute to better air quality. For families with young children, elderly renters, or anyone with respiratory sensitivities, this can make a huge difference in comfort and wellbeing. 


Highlighting this benefit can also make your rental more attractive to health-conscious tenants.


  • Durability and ROI


From a landlord’s perspective, the durability of hard surface flooring is a major plus. Carpets typically need to be replaced every 5–7 years in rental units, and even if you’re not replacing the carpet during turnovers, you’re certainly paying to have them cleaned. Hard surface floors, on the other hand, can last 15–25 years or more with proper care. They’re resistant to scratches, dents, and stains, making them ideal for rentals that see frequent tenant turnover.


While the upfront cost of installing hard flooring may be higher than carpet, the long-term savings on maintenance and replacement quickly make up the difference. Plus, hard surface floors often boost a property’s perceived value, making it easier to attract quality tenants and ask for higher rents.


An argument can be made for keeping carpet in bedrooms. However, when we’re talking about communal spaces such as living rooms, dens, and entryways, we highly recommend upgrading to hard surface flooring. In your coastal rental, this is largely about aesthetics. But it’s about practicality, health, and long-term value. By making this smart investment, you’re not only improving your property but also creating a cleaner, healthier, and more appealing home for your tenants. 


Make Energy-Efficient Upgrades for Long-Term ROI

Energy Efficient

Tenants looking for rental homes on or near the coast are generally people who appreciate healthy living. We’re talking about environmental health and the importance of providing energy-efficient upgrades in your property. 


As more tenants seek homes that align with their environmental values, renting out an energy-efficient home isn't just a smart way to increase your ROI. It’s absolutely necessary when it comes to attracting the best residents. 

Sustainability Meets Lifestyle
Tenants today, particularly in Southern California, are more eco-aware than ever. They’re looking for rentals that reflect their lifestyle, and that lifestyle tends to be one that respects the planet while still enjoying comfort and convenience. These are often tenants who bike to work, compost their waste, and spend weekends exploring local beaches and parks. Living in a home that conserves energy and reduces waste is a natural extension of how they already live. Energy-efficient homes with updated windows, smart thermostats, efficient HVAC systems, LED lighting, and solar panels cater perfectly to this demographic. Renters want to feel good about their carbon footprint, and choosing a green home allows them to do that without sacrificing the SoCal lifestyle they love.
Lower Utility Costs, Higher Appeal
Beyond the environmental benefits, energy-efficient homes are financially attractive to tenants. Utility bills quickly add up, so energy-efficient features become a major selling point. Renters are often willing to pay a premium, or choose one listing over another, if it means saving on monthly energy costs. This translates to a competitive edge for coastal landlords. A well-insulated, solar-powered home with ENERGY STAR appliances can stand out in the crowded rental market. More importantly, it can attract responsible, long-term tenants who value sustainability and are likely to treat the home with care.
Incentives and Future-Proofing
There’s another reason for landlords to consider upgrading their properties: government incentives. California offers a variety of rebates and tax credits for energy-efficient improvements, including solar installation, HVAC upgrades, and window replacements. These programs help offset the upfront costs and enhance the long-term value of the property. And as property management experts, we can tell you that energy efficiency is not just a trend. It’s the future. Regulations and tenant expectations are both shifting toward greener standards. By investing now, property owners are future-proofing their assets while meeting today’s rental demands.

In a rental market that celebrates nature and fresh air more than most, it only makes sense that housing reflects the same values. Energy efficiency is no longer a luxury for a small demographic of tenants. It's an expectation. For property owners looking to attract quality tenants and stand out in a competitive market, going green is the smart move.


The Coastal California Vibe: Paint and Fixtures

Paint and Fixtures

Enhancing your rental’s visual appeal doesn’t have to involve a full renovation. As long as the property is in good shape and appealing, some aesthetic improvements can do a lot for your ROI.


Here’s what we recommend for your coastal rental:

1. A Fresh Coat of Paint 

One of the most cost-effective ways to transform your coastal rental is with new interior paint. Light, airy colors like soft whites or sandy beiges help amplify natural light and give the space a clean, inviting feel. An accent wall in a muted navy or coastal blue can add a modern touch while still feeling beach-appropriate. Don’t forget the exterior, either. Repainting the front door or trim can boost curb appeal and create a strong first impression.


2. Updated Faucets and Hardware for a Modern Touch

Swapping out outdated faucets and cabinet hardware can instantly modernize kitchens and bathrooms. Brushed nickel or matte black finishes are popular choices that blend well with coastal themes. Look for fixtures that balance style with durability, especially in a high-humidity environment. Coordinating the faucet, cabinet handles, and towel bars creates a cohesive, high-end look that tenants will appreciate.


3. Window Coverings That Let the Light In

Harsh or outdated window treatments can make a rental feel closed off and uninviting. Consider replacing old blinds with breezy linen curtains or light-filtering shades that maintain privacy while still allowing natural light to brighten the space. Bamboo shades are another great option that add texture and a subtle coastal vibe. Functional and stylish window coverings elevate the interior and help tenants feel more at home.


Add Character with Coastal Décor and Details


While tenants will bring their own furnishings, incorporating a few subtle decorative touches can create a lasting impression. Think driftwood-inspired light fixtures, ocean-themed artwork, or neutral throw pillows with hints of sea blue. These small additions help convey the atmosphere of a coastal getaway without overwhelming the space.


Thoughtful updates like these will attract quality tenants, justify higher rental rates, and increase long-term satisfaction. 


Updated Landscaping Attracts the Best Coastal Tenants

Updated Landscaping

We’ve talked about the importance of outdoor space, especially in the sunny Southern California coastal communities where we manage rental homes. A great way to make improvements that support ROI is by focusing on landscaping and lawns.

Choose Native Plants Embrace Xeriscaping
Coastal environments can be tough on plants due to high salinity and strong winds. Opt for native or salt-tolerant species that thrive in these conditions. Plants like sea oats, beach sunflower, lantana, and oleander are excellent choices. These plants are not only resilient but also typically require less water and care, making them ideal for rental properties, especially when we’re dealing with droughts. Group plantings in clusters to create natural windbreaks and reduce erosion. Using native species also supports the local ecosystem and may attract butterflies and birds, adding to your property’s charm. Water conservation is crucial in California. Xeriscaping, or landscaping that reduces or eliminates the need for irrigation, is a smart and eco-friendly approach. Use gravel, mulch, and drought-tolerant ground covers like creeping thyme or ice plant to minimize water use and maintain visual interest. Drip irrigation systems can also be a worthwhile investment, ensuring plants get adequate moisture without the waste of traditional sprinklers.
Hardscaping for Function and Style Add Finishing Touches for Appeal
Integrate hardscaping elements like paver pathways, stone patios, and seating areas to create functional outdoor spaces that guests can enjoy. Coastal materials such as shell stone, flagstone, and weather-resistant wood (like cedar or teak) add rustic charm while standing up to the elements. Consider adding a fire pit, outdoor shower, or shaded pergola to boost the rental’s appeal. These features are relatively simple to install but can significantly enhance the guest experience. Small details can make a big impact. Use solar-powered lighting to highlight paths and create a welcoming glow at night. Remember to keep things attractive but simple. Tenants won’t move into a rental where they fear they’ll have to keep up with time-intensive landscaping. If you have a lawn that needs to be mowed or outdoor space that needs attention, consider hiring a service and rolling the cost into the amount you charge in rent.

These are some of the best improvements and updates we can recommend for your coastal rentals in and around Laguna Niguel and the surrounding areas. For additional help or customized suggestions, please contact us at Niguel Point Properties. 

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