Not every rental needs a full-blown renovation.
But if your investment property is struggling to attract quality tenants or failing to keep up with market rent, it could be time to do more than just patch things up.
Here’s how to know when it’s time for an investment property renovation, and where you’ll see the biggest return.
1. Your Property Is Struggling to Attract Tenants
Vacancy periods dragging out longer than usual? High turnover with tenants moving out within a year?
That’s often a sign your property no longer meets expectations in your local market.
In suburbs like Hurstville, Bexley, and Kogarah, tenants are spoiled for choice, and they’re drawn to rentals that feel modern, clean, and well looked after.
Address negative open house feedback like “dated” or “tired” promptly. Strategic upgrades can greatly improve a property’s appeal.
2. You’re Not Getting Market Rent
If similar properties in your area are leasing for more, and tenants are trying to negotiate your asking price down, your property might be falling behind.
Even if you’re not ready for a full renovation, small cosmetic updates, like new lighting, tapware, paint, or window coverings, can bring your place back in line with what tenants are willing to pay.
Tip: If you haven’t reviewed your rent in the past 12 months, now’s the time.
3. You’re Spending Too Much on Repairs
If you’re calling a plumber every few months, or constantly replacing tired appliances, it’s time to think long-term.
Constantly addressing repairs diminishes your earnings and leads to tenant dissatisfaction and increased turnover.
Smart move: If you’ve fixed the same issue more than once, replacement is usually more cost-effective. Not to mention, new fittings and fixtures often come with warranties that reduce maintenance stress down the track.
4. Your Kitchen or Bathroom Looks Stuck in the ‘90s
Tenants don’t need granite countertops or designer tiles. But they do expect functional, modern spaces that are easy to clean and pleasant to use.
Kitchens and bathrooms are the most-judged areas during inspections. Updating them doesn’t have to mean a full rebuild.
Start with:
- New tapware and cabinet handles
- Resurfaced benchtops or splashbacks
- Energy-efficient appliances
- A fresh coat of paint in a neutral tone
Ask yourself: Is this space functional, modern, and easy to maintain?
5. Curb Appeal Is Letting You Down
First impressions count. If the front of your property looks tired or neglected, tenants will assume the inside is the same.
Simple fixes like repainting the fence, trimming hedges, or pressure-cleaning the driveway can instantly lift the overall look.
And in a competitive market, that could be the difference between weeks on the market, or a lease signed after the first open.
6. You Want to Attract Better Long-Term Tenants
The reality is, better presentation attracts better tenants.
People who are house-proud are more likely to take care of your property, pay on time, and stay longer. That means fewer vacancies, fewer headaches, and more consistent returns.
Successful renovations do more than increase a property’s worth; they also signal the type of tenants you’ll secure.
Renovate with Strategy, Not Emotion
An investment property renovation shouldn’t be about personal taste or over-the-top upgrades. It’s about choosing improvements that drive value, reduce long-term costs, and appeal to today’s renters.
Wise investors know that tax deductions are a big plus worth thinking about.
According to Duo Tax, while renovations aren’t immediately deductible, they can be depreciated over time, helping you offset the cost and improve your long-term cash flow.
When you undertake renovations like bathroom retiling or appliance upgrades, remember that you might be eligible to claim a portion of these expenses back annually.
Just make sure you’ve got a depreciation schedule in place and detailed records of the work.
Is Your Rental Property Underperforming?
If your property is falling behind the local market, attracting short-term tenants, or costing you too much in maintenance, it might be time to invest back into it.
Want help deciding what’s worth upgrading in your rental?
Contact us at Mclaws Property today. Make informed renovation choices with our guidance to achieve substantial returns.