Renovating a Rental Property: What Landlords Should Prioritise
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Chadi
Your rental property might have already reached its initial return on investment (ROI), and now you’re looking to refresh or upgrade it to boost its long-term performance. Whether it’s been a few years since any major updates or you’re preparing for a new tenant, smart renovations can make a big difference in maintaining property value, attracting quality tenants, and minimising future maintenance issues.
But before diving into upgrades, it’s important to be strategic. Not every renovation will pay off, and overcapitalising—spending more on improvements than the property can return—can eat into your profits. The goal is to focus on cost-effective changes that deliver maximum impact, both aesthetically and functionally.
Assessing the Property's Current Condition
I’ve walked into many rentals over the years—some just needed a quick spruce-up, others had hidden problems bubbling beneath the surface. One job in particular still stands out. The landlord called me in, thinking we’d just be doing a cosmetic facelift: new paint, maybe an updated kitchen benchtop, and some modern light fittings. Easy, right?
But the moment I stepped inside, I knew we had to dig deeper.
The place looked decent at first glance, but I noticed signs of water damage near the bathroom skirting. I suggested we bring in a plumber and a building inspector before lifting a single tile. Sure enough, there was a slow leak that had gone unnoticed for who knows how long. Left unchecked, that could’ve led to major structural damage—and a lot more expense down the track.
This is why I always tell landlords to start with a full inspection. Don’t just assume what needs work based on what you can see. A fresh coat of paint might make the place look better, but it won’t stop a leaking pipe or fix dodgy wiring.
Once we had the inspection report, we made a list. First, we addressed structural and safety issues—those are non-negotiable. Then, we moved on to cosmetic items that would actually help attract better tenants and reduce vacancy time.
The tenant who’d just moved out had actually mentioned that the bathroom fan never worked properly and the kitchen light flickered constantly. It’s amazing how often tenant feedback matches what we find during the inspection.
So here’s the takeaway: before you worry about the pretty stuff, get the foundations right. Look deeper, ask questions, and bring in the right renovation professionals. It’ll save you time, money, and headaches down the line.
Define Your Renovation Goals
After that initial inspection, I always sit down with the landlord and ask one simple question:
“What’s your goal here?”
You’d be surprised how often they pause. Some want to get it tenant-ready, while others hope to increase the rent or even prepare the place for a future sale. And that goal completely changes how we approach the renovation.
Take this one property I worked on—a small two-bedroom unit that hadn’t been touched in about 15 years. The owner wanted to boost the rent and attract a more reliable long-term tenant, but she was also worried about overspending and not getting that money back.
So we broke it down.
If the goal is higher rent, you’ve got to focus on the tenant experience. That means modern kitchens and bathrooms, fresh flooring, clean lines, and decent heating or cooling. Tenants notice these things. But the goal is to minimise future maintenance. In that case, we look at upgrading the things that cost money in the long run—like installing durable flooring, fixing old plumbing, and swapping out ageing appliances.
If it’s a prep-for-sale project, it’s all about first impressions and buyer appeal—clean, light, functional, and fresh.
The point is, I don’t just swing a hammer. I ask the “why” behind every renovation. Once we know your endgame, we can make smart choices about where to invest and where to pull back.
Without a clear goal? You’ll end up spending on things that don’t move the needle.
Budgeting Smartly
Once we’ve nailed down the goals, the next step is setting a budget. And let me tell you—this is where a lot of landlords go sideways. Either they try to do everything on the cheap (and end up redoing it later), or they pour too much money into upgrades that won’t return a cent.
Here’s how I help clients stay on track:
Set a realistic budget upfront.
Don’t guess—get quotes, compare materials, and account for labour. Always leave a buffer (10–15%) for surprises. Trust me, they always pop up.
Prioritise high-ROI areas
Spend where it counts:
- Kitchen updates (new benchtops, appliances)
- Bathroom refreshes (modern vanities, better lighting)
- Flooring and paint These are the first things tenants and buyers notice.
Be careful not to overcapitalise
Know what similar rentals in your area are going for. If you spend $50K on a renovation but the suburb caps rental increases at $20/week, you won’t get that money back anytime soon.
Think long-term savings, not just upfront costs.
- Vinyl plank or hybrid flooring = less wear and tear.
- LED lighting = lower energy bills
- New tapware and fixtures = fewer callouts for leaks. Cheaper now isn’t always cheaper later.
Check what’s tax-deductible.
Not everything you spend is claimable, but things like repairs, maintenance, and certain upgrades may count. It is always worth running it past your accountant.
Don’t forget the downtime.
If the property’s sitting empty during renovations, that’s lost rent. Plan the timing wisely or work in stages to minimise vacancy.
Your renovation should work like a business decision. Every dollar spent needs to have a reason behind it—whether it’s reducing future maintenance, increasing rent, or making the property more appealing
Prioritising High-Impact Renovations
This is where landlords often get excited—but also where it’s easy to go overboard. The key is to focus on improvements that actually deliver value. That means better functionality, lower maintenance, and a fresh, clean look that attracts the right tenants.
Here’s what I recommend prioritising:
Kitchen Upgrades
Kitchens are often the heart of the home—and one of the first things tenants notice. A full gut job isn’t always necessary. In fact, smaller updates can go a long way.
- Replace old benchtops with affordable laminate or stone-look surfaces
- Update cupboard handles and tapware to modern finishes
- Reface cabinet doors rather than replacing the entire unit
- Add or refresh a tiled splashback
- Upgrade appliances if they’re old, mismatched, or energy-hungry
Tip: If there’s space, add a dishwasher—tenants see it as a big plus.
Bathroom Refreshes
Bathrooms can age a property fast. But you don’t need to start from scratch.
- Regrout tiles or use a grout pen for a quick facelift
- Replace vanities, mirrors, and shower screens for a more modern look
- Install water-saving tapware and showerheads
- Improve lighting for a cleaner, brighter space
- Ensure there’s proper ventilation to prevent mould
Could you keep it simple and neutral? Tenants want clean and functional over high-end finishes.
Flooring Upgrades
Flooring takes a beating—especially in rentals. Swapping it out can instantly lift the space.
- Use hybrid or vinyl plank flooring—both are durable and low-maintenance
- Opt for timber-look tones to create warmth and modern appeal
- If you’re on a tight budget, prioritise high-traffic areas first
Bedrooms can still have carpet, but only if it’s new, neutral, and easy to clean.
Fresh Paint and Lighting
These two changes often offer the best bang for your buck.
- Stick with neutral tones—white, soft greys, or beige
- Avoid bold colours or feature walls—they can put tenants off
- Upgrade lighting to LED for energy efficiency and a brighter feel
- Use cool white lighting in living areas and warm tones in bedrooms
A freshly painted room with good lighting feels bigger, cleaner, and more welcoming.
Curb Appeal and Outdoor Areas
First impressions matter—especially in competitive rental markets.
- Mow lawns, trim trees, and tidy up any overgrown areas
- Pressure clean the driveway and paths
- Repaint the front door or replace the hardware for an instant lift
- Add low-maintenance landscaping like mulch, pebbles, or native plants
- If space allows, create a small outdoor area or sitting zone
Even a simple outdoor refresh can make your property feel more like a home.
The goal here is to focus on upgrades that add tangible value—the ones tenants notice as soon as they walk through the door and the ones that make your property easier to maintain over time.
Energy Efficiency and Compliance
This part of a renovation doesn’t always look exciting, but it’s essential. Energy efficiency and compliance aren’t just legal requirements; they’re smart investments that pay off in reduced maintenance and happier tenants.
Here’s what I focus on during every reno:
Check insulation and ventilation.
Make sure ceiling and wall insulation meets current standards. Poor insulation leads to complaints—and higher heating bills for tenants.
Install ceiling fans or split systems
Tenants want year-round comfort. A simple split system adds huge value without the cost of ducted air.
Upgrade windows or add flyscreens
Old single-pane windows can be drafty. Flyscreens help with airflow and tenant comfort, especially in summer.
Ensure safety compliance
This includes hardwired smoke alarms, deadlocks on doors, secure windows, and updated switchboards. Get a licensed sparky to check everything over.
You don’t want to find out something is non-compliant during a routine inspection—or worse, after an incident.
Technology & Modern Amenities
Even budget rentals benefit from a few modern touches. These days, renters expect more than just four walls and a roof.
A few simple upgrades I often recommend:
Install USB charging outlets
It is a minor cost, but tenants notice—and appreciate—the convenience.
Ensure strong internet access.
Check that the NBN is connected and ready. If it’s not, arrange for the cabling ahead of time.
Consider smart features
Keyless entry, smart thermostats, or even a Wi-Fi-enabled split system can make your property stand out in a crowded market.
You don’t need a full “smart home” setup—but a few forward-thinking features go a long way.
Renovating Between Tenancies
The best time to renovate is when the place is empty. There is no furniture, no schedule conflicts, and no tenant disruptions.
Here’s how I usually approach it:
Plan major works during tenancy turnover.
Painting, flooring, full kitchen or bathroom renovations—get them done between leases if possible.
Work fast, work smart.
Rent is lost every day, and the property is empty. To avoid delays, have materials and trades lined up in advance.
If renovating while occupied, communicate clearly.
Give notice, explain the timeline, and minimise disruption. Tenants usually understand if they know what’s going on.
Working with Trades and Professionals
Good tradies can make or break your renovation experience. I always tell landlords to avoid cutting corners.
Hire licensed tradespeople only.
Always ask for license numbers and insurance details—especially for electrical, plumbing, and structural work.
Get multiple quotes
Not just to compare prices, but to gauge professionalism, timelines, and communication.
Read reviews or ask for referrals.
A good reputation is gold. So is a contractor who shows up when they say they will.
Consider using a property manager.
If you’re not hands-on or local, a good property manager can coordinate the renovation and liaise with trades on your behalf.
Final Touches That Matter
It’s the little things that help tenants decide to apply—or walk away.
Here are the finishing touches I never skip:
Window coverings
Replace old, dusty blinds with modern roller shades or clean curtains. It makes a big difference to the feel of a room.
Maximise storage
Add built-in robes if they’re missing, install shelving in laundries, or choose vanities with under-sink storage.
Deep clean and stage
Whether you’re self-managing or working with an agent, make sure the property is spotless. A fresh, well-presented home rents faster—always.
Frequently Asked Questions
Only if the upgrades significantly improve the property and comply with local rental laws. Always check your state’s tenancy regulations first.
It depends on the scope—structural changes or additions often require approval. Cosmetic updates usually don’t.
No. Repairs and maintenance are deductible, but major renovations are considered capital improvements. Check with your accountant.
Yes. Some policies require updates if the property is vacant or undergoing major work.
Conclusion
Renovating a rental property isn’t just about looks—it’s about strategy.
Smart, well-timed upgrades keep your property competitive, minimise vacancies, and reduce maintenance costs over the long run. The key is knowing where to spend, what to prioritise, and how to future-proof your investment.
You don’t need to renovate everything at once. Start with what matters most, set clear goals, and work in stages if necessary. Done right, even modest upgrades can deliver a solid return without breaking the bank.
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