Sydney’s rental market is booming, and as an investor, you want your property to stand out from the crowd. Renovations can be a powerful tool to attract high-quality tenants who are willing to pay premium rent. But before you grab a sledgehammer, it’s important to understand what truly resonates with Sydney renters to strategically maximise your return.
Is it worth renovating an investment property?
Yes, it’s absolutely worth renovating a rental property. Tenants will take better care of a beautifully presented property, especially if your property manager keeps on top of regular rental inspections. Moreover, you can attract better returns compared to a rundown property and maintenance and modernisation protects your investment.
Here’s more information from the ATO regarding what rental expenses you can claim. Tax deductions, such as claiming smaller costs (under $300) the year they incurred, might lessen the blow of impactful renovations.
Before you start, consider whether a full renovation is needed or just minor repairs and cosmetic updates. Smaller, tax-deductible upgrades include new paint, updating door handles and cabinet hardware, and installing stylish new light fixtures.
Then, do some market research to determine if renovations will help you achieve similar rent to comparable properties nearby. We are always happy to help our clients in this instance.
What renovations will make your investment property more appealing to tenants?
Tenants today crave functionality and a touch of luxury. So, instead of a complete high-end overhaul, focus on features that make everyday life easier and more enjoyable.
1. Modern and functional kitchens and bathrooms
Most renters want a modern kitchen and bathroom. Think sleek, durable benchtops, ample storage, fingerprint-proof cabinetry, quality appliances (dishwasher, anyone?) and stylish fixtures. In bathrooms, consider frameless shower screens, modern vanities, a glass splashback over tiles (goodbye ugly grout) and good lighting.
2. Hard-wearing floors
Opt for hard-wearing floors like timber or vinyl planks. They’re easy to maintain, handle high traffic well, and give the space a clean, contemporary feel. Carpet can be a good bedroom choice, but stick to neutral colours that hide wear and tear better.
3. Good heating and cooling
Sydney weather can be unpredictable. Ensure your property has efficient heating and cooling systems, including a split system air conditioner or a well-maintained gas heater.
4. Useable outdoor space
Even a small, well-maintained balcony or courtyard can be a game-changer in a Sydney apartment. A place to relax with a morning coffee or entertain friends is a huge plus for many renters of all ages.
5. Enough powerpoints
Never underestimate the power of ample electricity outlets in the primary rooms, i.e., the kitchen, bathroom, living area and main bedroom. Your renters will love not having to use a switchboard and extension cords in every room.
The JDH difference
At JDH Real Estate, we understand the Northern Beaches rental market inside and out. We can advise you on several factors:
- Tenant preferences: We can share which areas to focus on renovating to make your property more attractive to local renters.
- Finding the right finishes: We’ll advise you on stylish finishes that are easy to maintain and cost-effective in the long run.
- Budget advice: We can give you tips on the budget for your renovations so you get the most bang for your buck.
- Maximising your rental return: From setting the right rental price to finding high-quality tenants and conducting regular inspections, we can take all the stress away from managing and maintaining your rental property.
Contact JDH today to discuss your property
Whether you’re a seasoned investor or renting out your property for the first time, we can help you develop a strategic plan to attract top tenants and maximise your rental returns. We have decades of experience managing rental properties in the Northern Beaches. Feel free to contact us if you have any questions.
