Renovating a flat before renting it out: what to invest in and what can wait

Before renovating, be clear about who you want to rent the flat to and what rent matches its condition and location. Tenants value a kitchen that is easy to cook in, appliances that work and a flat that is worth the price. The cost of a new kitchen unit alone doesn’t determine the quality of living. For every planned change, decide whether you are fixing a defect, improving everyday use or adding features to suit your own taste.

Quick answer: renovating a flat before renting it out

Before renting out, invest first in the safety and proper functioning of water, drainage, electricity and heating. Then focus on everyday use of the kitchen, bathroom, lighting and storage. For designer finishes, luxury appliances and smart-home features, consider whether your intended tenants will value them and whether any rent increase justifies the cost. The benefit depends on the specific flat and market segment. In 2026 a full renovation costs roughly 12,000 to 25,000 Kč/m² (Czech average, 20 to 40% more in Prague); but build your budget from specific quotes, including transport, waste disposal, finishing and a contingency.

In a model with an investment of 180,000 Kč and a rent increase of 2,000 Kč a month, the simple payback period is 7.5 years. Add one month of lost rent at 25,000 Kč and it extends to roughly 8.5 years, before other costs and tax. Premium upgrades therefore need a clear reason. Tax treatment depends on the nature of the work and how you claim expenses, not just on the label “renovation”.

Safety, easier letting or higher rent?

Before ordering any work, distinguish three goals: bringing the flat into a safe, working condition, making it easier to rent out and, possibly, raising the rent. Easier letting means both filling the flat quickly and attracting suitable applicants. Some upgrades help in all three areas; others mainly improve how the flat looks in photos.

For each planned item, note which group it belongs to and what question it answers:

Start with safety and working order

Start by checking the systems that make the flat liveable. Water, drainage, heating, wiring and the safe use of appliances take priority over decoration. Leave specialist work to properly qualified professionals. For gas and electricity, distinguish between servicing, checks and formal inspections. Requirements and intervals depend on the equipment, its operator, regulations and the manufacturer’s documentation. They can’t be reduced to one universal rule for every rented flat. Before handover, have a relevant specialist assess the condition and the necessary documents.

Also look at damp, odours, ventilation and the condition of the windows. Painting over a stain won’t fix its cause. If the problem returns after the tenant moves in, arranging repairs and keeping the flat running smoothly will be harder. The landlord is obliged to keep the flat fit for use (§ 2257 of the Civil Code). A tenant’s claims in the event of a defect, including any rent reduction, depend on the circumstances, notification and remedy. So deal with the cause of damp rather than just covering it up.

Don’t forget locks and keys. If you’re unsure who has copies, consider replacing the lock cylinder once the flat has been properly returned. Keep a record of every set handed over. Preparing for a new tenancy in this way is quite different from changing the lock during a tenancy without the tenant’s consent.

Then upgrades tenants notice every day

A well-functioning kitchen, a clean bathroom, plenty of light and practical storage make a difference in daily use. When preparing the flat, go through these six areas:

1. Lighting. Check the output and colour temperature of light sources and add worktop lighting. Judge a cosy living room differently from visibility while cooking.
2. Kitchen worktop and appliances. Compare repairing doors and the worktop with replacing the whole unit. Check the appliances and the space for a possible dishwasher. Base the required standard on your target market, not on a single rent threshold.
3. Bathroom: function before looks. Leaks and poor ventilation are a different problem from older but functional tiling. New silicone only makes sense once the cause of damp has been dealt with.
4. Storage. Measure wardrobe depth, passageways and space for everyday items. A narrow hallway crammed with furniture can be less practical than one well-thought-out storage solution.
5. Internet. Check what connections are actually available for the building and the flat. In the listing, distinguish between the option to order a service and an active connection included in the price.
6. Floors. Assess whether they need cleaning, spot repairs, refinishing or replacement. Make sure a quote for new flooring includes subfloor preparation and skirting.

Choose materials for easy maintenance and repair. For heavily used equipment, accessible servicing, standard spare parts and the ability to replace a damaged part without touching the rest are worth paying for. For the kitchen, ask about the availability of replacement doors and keep the material codes. Even a standard range may no longer be on sale in five years.

Premium features that need a good reason

Some upgrades can pay off in the right segment, but don’t add them automatically to a standard rental flat:

• Designer tiles and sanitaryware. Separate the cost of durability and easy cleaning from the premium for looks or brand.
• Bespoke kitchen. It can make the most of an awkward layout, but compare it with a standard set of the same functionality. A more expensive installation won’t command higher rent by itself.
• Smart home. Also think about account management, privacy, outages and simple manual control. The benefit can turn into a maintenance obligation.
• Air conditioning. First check whether the flat overheats, shading options, noise and installation conditions. Work on the façade and common areas needs a separate assessment.
• Replacing working windows for looks. Distinguish aesthetics from leaks, security and noise. Also check who owns the windows under the declaration of ownership and whether heritage protection applies.
• Decor and accessories. They can help presentation but needn’t stay as part of the rental. Be clear about what is just for the photos and what you’re actually handing over.

There’s no universal percentage by which rent rises after renovation. And the price gap between furnished and unfurnished listings isn’t necessarily down to furniture alone. Location, the age of the building and the target group may differ too. Compare similar flats and, for each upgrade, also model a more cautious scenario for its benefit.

How to build a full budget and contingency

For an initial idea, here are ranges based on public overviews for 2026 (Sousedé.cz); in Prague, expect prices 20 to 40% above the Czech average and a contingency of 15 to 20% for issues that only surface during the work:

Floor area alone won’t determine the exact price. Two bathrooms of the same size may differ in the condition of the pipework, access to the building and the extent of demolition. To get comparable quotes, send contractors the same brief:

For example, for a 180,000 Kč quote you could add a 20% contingency, i.e. 36,000 Kč, for an initial stress test. This isn’t a universally correct amount or an estimate of market prices. Untested pipes and wiring carry different uncertainty than painting. Approve extra work in writing, including the price and the impact on the schedule. A contingency is no reason to pay for work you didn’t order.

How to calculate payback including lost rent

Let’s assume model upgrades costing 180,000 Kč and an increase in achievable rent from 25,000 to 27,000 Kč a month. The difference is 2,000 Kč. Neither the cost of the upgrades nor the higher rent is a quote or a guaranteed result.

The table shows how sensitive payback is to the rent increase achieved and the final budget. Faster letting can help, but mustn’t be assumed automatically. If you factor it in, book the saving in the year it is expected to occur. Don’t deduct future savings from today’s investment as if they were already in your account.

The model doesn’t include financing, tax, the time value of money, future replacement of furnishings or any change in sale price. Higher rent may also increase a percentage-based property management fee, so the owner may not keep the whole difference. For a more accurate decision, work with the increase after costs. We explain the difference between gross yield and cash flow in our article buying a flat as an investment in Prague.

Should the flat be fully furnished?

It depends on who you want to rent to and for how long. A fully furnished flat may suit people who need to move in with just their personal belongings, such as foreigners on work assignments, people after a divorce or students. Other applicants already have their own bed, desk and kitchenware and don’t need more furniture. That may be a couple or a family planning to live in the flat for five years who don’t want to pay to store the landlord’s furniture.

Separate basic equipment from fully furnishing a home. A working kitchen with appliances, lighting and storage make sense either way. For a sofa, bed, mattress, kitchenware and textiles, also factor in hygiene, wear, replacement and a precise inventory. With a mattress, it’s worth checking whether the tenant would rather use their own.

Think about the cost of furnishings over their whole lifespan. In our model, four sofas at 8,000 Kč each mean higher purchase costs than one at 25,000 Kč, but a higher price doesn’t guarantee a longer life. Consider durability, cleaning, servicing and replacement costs. In a partly furnished flat, you can give the tenant more room for their own furniture while reducing the number of items you’ll have to replace.

Preparing the listing doesn’t have to mean more renovation

Once the flat is in working order, clean it thoroughly, remove clutter, tidy up small details and arrange good-quality photos. Applicants should be able to see the layout and furnishings clearly. When preparing the flat for photos, i.e. home staging, it helps to have clear surfaces, clean windows, working lights, personal items removed and coordinated textiles, if there are any.

For the photos, daylight, a wide-angle lens without distortion and shots taken at eye level all help. Don’t hide defects, and keep the room’s true proportions so the photos match what applicants will see at the viewing. A floor plan, an inventory, the energy rating and a clear total monthly price help avoid unnecessary questions and viewings. You’ll find practical tips in our article five tips for effective home staging.

Repairs and technical improvements aren’t the same for tax

Tax classification isn’t determined by the price of the job alone. A repair usually restores the previous or working condition. For a landlord taxed under § 9 who records actual expenses and doesn’t keep double-entry accounts, it can, if the conditions are met, be deducted in the year of payment. If you use the 30% flat-rate expense allowance, you can’t claim it on top.

A technical improvement covers completed extensions, additions, building alterations, reconstructions and modernisations as defined by law. If the total for an individual asset exceeds 80,000 Kč in a tax period, it is usually reflected in the asset’s tax valuation and depreciation (§ 33 of the Income Tax Act). Calling something a new kitchen or air conditioning doesn’t settle its classification. Nor does it automatically mean a new thirty-year depreciation cycle after every upgrade.

In practice: if an expert assessment of a 500,000 Kč job identifies 300,000 Kč of separate repairs and 200,000 Kč of technical improvement, you can’t automatically deduct the full 500,000 Kč at once. The depreciation amount depends on the method, the year of depreciation and the increased input or residual value. So ask for a factual description of the work, before-and-after photos and separate invoice items. Splitting invoices for convenience won’t change the nature of a single upgrade. In unclear cases, you can request a binding ruling under § 33a of the Income Tax Act. More in our article on tax on rental income.

Whether the work requires a permit, affects common areas or is subject to heritage protection is assessed separately. Notifying the person responsible for managing the building of alterations inside the flat under § 1182 of the Civil Code is not the same as consent to work on common areas. Nor is moving a non-load-bearing partition automatically always subject to a permit, or always permit-free. All statutory conditions apply, including fire safety, appearance and use. Check them with an architect and, if necessary, with the authorities before ordering any work.

Preparation only ends with handing over a fully working flat

Once the work is finished, test all equipment, record new furnishings including models and serial numbers, and keep warranty documents and manuals. Before photos and viewings, check the details that are easily missed at the builders’ handover: doors, sockets, drains, lights, post-installation cleanliness and window seals.

Then take baseline photos and prepare a handover protocol. The investment in the flat should be documented so that at the next change of tenant it’s clear what condition the tenant received it in and what counts as normal wear and tear under § 2293 of the Civil Code. Dated photos linked to the protocol help prove the condition even years later.

FAQ

Do I have to repaint the whole flat before every tenant?

Not automatically. It depends on the actual condition. Painting is part of routine maintenance during a tenancy (§ 2 of Government Regulation No. 308/2015 Coll.), but that doesn’t mean the flat must be returned freshly painted after every tenancy. Normal wear and tear is taken into account on return (§ 2293 of the Civil Code). Assess repainting before the next listing separately, based on need and an itemised budget.

Is it better to renovate first and sort out management afterwards?

It pays to discuss the future rental before ordering any work. You can then tailor the upgrades to the intended tenant, your budget and the planned price. It also helps you assess investments that may not be reflected in the rent. We can also recommend the tradespeople we work with in property management for preparing your flat.

How much will the rent go up after renovation?

There’s no universal percentage. Compare similar listings before and after upgrades, and take total monthly costs into account. In this article’s model, the 2,000 Kč increase is an assumption for the calculation, not a promised result of renovation.

Can I leave the renovation to the tenant in exchange for lower rent?

It can be agreed, but set out in writing in advance the scope, consent to the alterations, quality, liability, the effect on rent and the settlement when the tenancy ends. Take into account § 2263 and the general rules on changes to a leased item under § 2220 of the Civil Code. Entitlement to settlement can’t safely be summed up as “no agreement, no compensation”. Have the specific arrangement reviewed by a lawyer, especially if the alterations are of significant value.

Do I need a building permit to renovate a flat?

It depends on the specific work. Some alterations count as minor works that don’t require a permit, but they must meet all statutory conditions. What matters is any work affecting load-bearing structures, appearance, use, fire safety and heritage protection. Deal separately with your obligations towards the owners’ association (SVJ) and the building’s common areas. Have your specific plans assessed by an architect.

Editorial update: 12 September 2026. The scope of work, building regulations and tax classification require assessment of each specific case.

Sources and conditions: Income Tax Act, § 33 and § 33a, Civil Code, § 1182, § 2220, § 2257 and § 2263, Ministry for Regional Development: minor works under the Building Act. Amounts in the examples are model inputs, not a price list or confirmed payback.