Which of the following describes a capital improvement?

A capital improvement is typically defined as an upgrade or modification to a property that substantially enhances its value or extends its useful life. This definition aligns with the concept that capital improvements are intended to improve the functionality, efficiency, or overall marketability of a property. Such improvements might include renovations, additions, or the installation of new systems that significantly enhance the property's worth.

The other options represent different types of expenditures or activities related to property management but do not meet the criteria for capital improvements. Routine maintenance work is essential for preserving the property's condition but does not increase its value in a significant way. Budgeted costs for property operation are standard expenses that keep a property running but do not enhance its intrinsic value. Cosmetic changes made before selling a property may be aesthetically pleasing or help in staging but typically do not constitute a true capital improvement as they might not provide lasting value or functional upgrades to the property itself.