As a landlord, you have to outline to your tenant what they can and can’t change as far as physical things in your property.
You should definitely give your tenant freedom as far as painting the interior, as long as they paint it back to the original color when they move out. This same kind of idea applies to hanging things on walls; your tenant should be allowed to hang things up on halls as long as they cover up the holes when they move out. You have to remember that your tenant is living in a home that isn’t theirs, so they want to make it feel as much theirs as they can. By personalizing your property, your tenant will feel more inclined to stay there for a long time. If your tenant doesn’t comply and return your property to you in its original state, take the repair and restoration costs out of their security deposit.
Your tenant may want to do bigger changes, like changing floors or even knocking down walls…yikes! These kind of changes become costly and may also be a hassle to deal with. Unless it’s something that absolutely needs to be done, like changing carpets to tiles become there is a risk of water damage from an appliance, it’s probably not in your best interest to allow your tenant to do it. This may also alter the value of your home, and not always in a positive way.