Choosing the best flooring for a rental property isn’t just about how nice it looks; it’s about deciding on something that influences everything from nightly rate to tax deductions. Remember, flooring serves two purposes: to look as good as possible and provide the much support as possible as well. This means choosing flooring that can survive the wear and tear of different guests living in the property. Below, let’s break down why flooring is important and how to choose the best flooring for your rental property.
What is the best flooring for a rental property?
The best flooring for rental on the property depends on the type of tenants, how often people move in and out, and how much upkeep a landlord wants to deal with. What works for a luxury apartment where someone stays for years might be a terrible idea for a busy Airbnb that has new guests every week. Good flooring should make the place feel nice for tenants while also protecting the owner’s investment. For long-term rentals, hardwood or carpet might work well, while short-term rentals usually do better with durable options like luxury vinyl plank (LVP) or tile.
What should you think about when picking flooring?
Picking flooring is like picking paint for a house, although people might disagree on the color, the purpose is all the same, and the same goes for landlords looking at flooring options. They want it to be tough enough to handle everyday wear, moving furniture, pet scratches, and spills without falling apart. They also want something easy to clean, especially in short-term rentals where guests come and go fast, and are not always the “cleanest.”
Cost is also a consideration for landlords and investors. If you are looking at replacing flooring in multiple units under management, like a STR portfolio or a multifamily property, then it matters even more. It also needs to look good, because better-looking rentals usually mean higher rents and better tenants. In some cases, landlords focus on waterproof floors for kitchens, bathrooms, and basements to avoid water damage. Others go for stylish, durable options like luxury vinyl plank, which gives the look of hardwood without the high maintenance.
Things to consider when looking at flooring for a rental property
Tenant type and turnover frequency
Higher turnover means more wear and tear. STRs need flooring that can be cleaned quickly and won’t degrade quickly. Depending on tenant habits, long-term rentals can accommodate slightly less durable options.
Climate and moisture exposure
In humid regions or units near water, such as beach rentals, moisture-resistant flooring is critical. Materials like tile or luxury vinyl plank (LVP) hold up better than laminate or carpet.
Cost vs. longevity
Investing in high-quality flooring may have a larger upfront cost, but it can save money over time. The goal is to reduce replacements or repairs between tenants.
Noise insulation needs
Soundproofing is important in multifamily units or upper-floor apartments. Carpet and underlayment beneath laminate or vinyl can help reduce noise complaints.
Tax implications and depreciation
Each flooring type depreciates differently. With cost segregation, you can separate short-life assets, like flooring, from your building’s 27.5-year schedule. This allows you to claim deductions much earlier.
Top flooring options for rental properties
With so many flooring materials on the market, it’s important to choose one that balances cost, appearance, durability, and maintenance. The right choice depends on the type of rental you operate and the experience you want to offer tenants or guests. Below is a breakdown of the most popular flooring options used in both short-term and long-term rental properties, including their pros, cons, and best-use scenarios.
| Flooring type | Pros | Cons | Best for | Installed cost (per sq. ft.) |
|---|---|---|---|---|
| Vinyl | Waterproof, scratch-resistant, affordable | May feel cheap in upscale rentals | Kitchens, basements, and high-moisture areas | $2–$5 |
| Laminate | Durable, cost-effective, wide design range | Not waterproof, can swell if wet | Living areas, low-moisture rooms | $3–$7 |
| Tile | Extremely durable, waterproof | Cold underfoot, expensive to install | Bathrooms, entryways, luxury STRs | $7–$15 |
| Hardwood | High-end appearance, long lifespan | Expensive, scratches easily | Luxury long-term rentals | $8–$14 |
| Carpet | Affordable, comfortable, noise-dampening | Stains easily, needs regular replacement | Bedrooms, colder climates | $2–$6 |
| Luxury vinyl plank (LVP) | Looks like hardwood, waterproof, durable | Slightly more expensive than standard vinyl | STRs and mid-to-high-end units | $4–$8 |
Best flooring by rental type
Just like human beings have different needs, not all rental properties have the same needs. The ideal flooring depends on your rental strategy, tenant behavior, and how often the unit turns over. Whether you’re managing a luxury long-term lease or a high-traffic short-term rental, the right flooring can help reduce maintenance, attract better tenants, and improve profitability. Here’s what you should look at when choosing rental flooring.
Short-term rentals (Airbnb, VRBO)
- Choose waterproof and scratch-resistant flooring like LVP or tile
- Prioritize aesthetics to help boost nightly rates
- Avoid carpet, since stains and wear are harder to manage with frequent turnover
Long-term rentals
- Laminate or carpet may be acceptable for cost savings
- Vinyl is a good compromise between durability and price
- Consider the total cost of ownership, including cleaning and replacement cycles
Luxury rentals
- Tenants may expect hardwood or high-end tile
- These materials can increase property value and retention
- May be better suited to longer depreciation schedules, so plan upgrades with your tax advisor
How to choose and install the right flooring
Picking out flooring isn’t just about finding something that looks good. It’s also about making sure it holds up and doesn’t cause problems later. First, think about who’s renting the place; families, pet owners, traveling workers, or vacation guests all wear floors down differently. Then, look at your options. Materials like luxury vinyl plank can look like wood but stand up better to spills and rough use. Always compare prices, check how tough the material is, and think about how often you’ll need to replace it. And don’t just grab the first installer you find, get a few quotes so you know you’re paying a fair price.
Before locking anything in, double-check if the flooring and installation come with warranties. It could save you a lot of money later if something goes wrong. If you’re running a short-term rental, pick floors that clean easily and won’t trap smells between guests. For long-term tenants, it’s smart to spell out in the lease who’s responsible for keeping the floors in good shape. A little planning now can save a lot of headaches down the line.
When not to replace flooring (yet)
Replacing flooring can be one of the most visible and satisfying upgrades in a rental, but it’s not always the smartest move financially. If the current flooring is still functional, cleanable, and structurally intact, rushing into a full replacement could reduce your ROI, especially if the property is already performing well.
In many cases, strategic repairs, spot replacements, or deep cleaning can buy you additional years of use. Re-stretching carpet, re-grouting tile, or swapping out a few damaged vinyl planks may be enough to maintain tenant satisfaction without the cost of a full overhaul.
You should also consider the tax side, as it turns out, flooring can save you money on taxes by utilizing accelerated depreciation through cost segregation. If you’re already depreciating existing flooring, replacing it early may complicate your asset schedule and result in missed value. By timing your upgrade to align with a cost segregation study, you can classify the new flooring into a shorter asset life category and accelerate your deductions, rather than interrupting an ongoing depreciation schedule mid-cycle.
Here are other situations where delaying replacement may be the smarter move:
- You’re planning a major renovation next year and want to bundle improvements
- A long-term tenant is about to move out, giving you a better installation window
- Your flooring still contributes positively to guest or tenant reviews
Flooring replacement becomes a powerful tool, not just a cosmetic refresh, when coordinated with your broader rental strategy and depreciation planning.
How cost segregation affects flooring depreciation
Flooring upgrades are more than cosmetic, they can have major tax advantages when paired with a cost segregation study. Different materials follow different depreciation schedules under IRS guidelines:
- Carpet: 5 years
- Vinyl or LVP: 5 to 7 years
- Tile (if permanently affixed): 27.5 years unless broken out in a cost segregation study
With cost segregation, flooring that would typically be grouped into the building’s 27.5-year schedule can instead be reclassified as a shorter-life asset. This lets you accelerate depreciation and free up more deductions in the early years of ownership.
Case study: Flooring upgrade in a mid-tier Airbnb
In early 2024, Jason, a mid-level investor in Austin, Texas, owned a modest two-bedroom Airbnb that was doing well but lacked standout reviews. The unit had older beige carpet throughout, which required frequent deep cleaning between guests and absorbed odors easily. After noticing a dip in bookings and several comments about cleanliness and dated interiors, he decided it was time for a flooring upgrade.
Jason chose to replace the carpet with luxury vinyl plank (LVP), a waterproof, scratch-resistant option that mimics the look of hardwood but is far more affordable and durable for short-term rentals. The total cost for the flooring materials and installation came to $4,500.
Operational impact
Within the first three months of the upgrade:
- Cleaning turnaround dropped by 35%, reducing labor and allowing for faster same-day check-ins.
- Guest ratings improved, particularly on cleanliness and style.
- Occupancy increased by 8% during the following quarter compared to the previous year.
But the real value came from the tax savings unlocked through a cost segregation study.
Depreciation analysis: Standard vs. cost segregation
Without cost segregation, Jason would have had to depreciate the $4,500 flooring cost as part of the building over 27.5 years:
| Depreciation method | Asset life | Annual depreciation | Total depreciation in 5 years |
|---|---|---|---|
| Standard (no cost seg) | 27.5 years | $164/year | $820 |
| Cost segregation (LVP reclassified) | 5 years | $900/year | $4,500 |
Savings difference over 5 years:
$4,500 (with cost segregation) − $820 (standard) = $3,680 in accelerated deductions
Jason used that extra deduction to reduce his taxable income and reinvested the resulting cash savings into another property. The ability to write off the full flooring expense in just 5 years, rather than over nearly three decades, gave him a powerful financial edge.
Maximize your flooring investment with smart timing and tax strategy
Remember, your rental property has both a ceiling and floor from an investment sense; the floor being the minimum rental you need to produce, and the ceiling being the maximum rental you’d like to achieve.. Changing your flooring for the better will help you reach your rental income ceiling and avoid your income floor!
The right flooring choice can do more than improve the look of your rental. It can boost guest satisfaction, reduce maintenance headaches, and contribute directly to your bottom line. But even more important is knowing when and how to make those upgrades. By aligning your flooring decisions with your rental strategy and leveraging tools like cost segregation, you can turn a simple renovation into a money maker based on both income and tax-saving strategies.
FAQ
Can you write off flooring costs in a rental property?
Yes. Flooring is considered a capital improvement and can be depreciated over time. Depending on the type of flooring and how it’s installed, it may be classified as a 5-, 7-, or 15-year property. Some materials, like carpet or vinyl, can qualify for shorter depreciation schedules, especially when identified in a cost segregation study.
What flooring adds the most value to a rental property?
Luxury vinyl plank (LVP) often provides the best return for both short-term and long-term rentals. It mimics hardwood, is waterproof and durable, and appeals to many tenants. Hardwood or tile can boost perceived value for luxury units, but these materials also come with higher upfront costs.
Should I install the same flooring throughout the entire rental?
It depends on the property and your target tenant. Using consistent flooring across living areas creates a modern, seamless look that photographs well for listings. However, using waterproof tile or LVP in bathrooms and kitchens while keeping carpet in bedrooms can balance cost with comfort and functionality.
