Housing renovation, in contrast to new construction projects, has to take good care of the tenants who are already living in the building. What are the theoretical and practical implications concerning the transformation from a technology-and-engineering-focused renovation approach to a more user-oriented one? What are the mechanisms of strategy change? Based on our case we argue that the mechanisms of strategy change are based on the interplay between external disturbance and internal renewal. External disturbance is the trigger of strategy change, but it does not, in itself, necessarily lead to strategy change, and particularly not for an innovative new strategy. The internal new competence is the source of changing from an old strategy to an innovative new strategy. The real estate industry needs to undergo a transformation from the rationalistic technology- and engineering-focused renovation model (TEF model) to a more inclusive approach. We suggest a user-oriented model (UO model) where user involvement is seen as integrated in the whole process of renovation.