As a landlord, it can be challenging to determine where to invest in your property to achieve better rental returns and long-term value. Striking the right balance between effective property improvements and avoiding overcapitalisation is key. Owning a rental property during a period of low supply is an ideal scenario for any landlord. However, don’t be misled by the numbers—low vacancy rates don’t automatically guarantee higher rental returns if your property isn’t meeting market expectations.
Below, we’ve compiled a list of renovation do’s and don’ts based on our 20+ years of experience helping landlords manage their investment properties. Learn from the mistakes of those before you and focus on smart financial decisions to keep both your bank account and your tenants happy.
Renovations & Upgrades We Recommend:
- Fresh Paint Throughout – A neutral, modern color scheme instantly makes a property feel brighter and more spacious. Refreshing the walls with a contemporary palette enhances appeal and creates a clean, inviting atmosphere.
- Kitchen Upgrades – A full kitchen remodel isn’t always necessary. Instead, consider replacing worn benchtops, cabinet doors, and tapware. These cost-effective updates improve the overall feel and modernity of the property without excessive spending.
- Bathroom Refresh – Retiling can be expensive, so we recommend regrouting instead. Updating fixtures and replacing old vanities with modern, functional designs can significantly enhance the bathroom’s appeal at a fraction of the cost.
- Air Conditioning & Ceiling Fans – This is a crucial factor in rental appeal. In Brisbane’s climate, air conditioning (especially in living areas) is often considered a necessity by tenants. Installing air conditioning improves both rentability and rental yield. Ceiling fans in bedrooms are also a great addition, offering added comfort.
- Landscaping – Low-maintenance landscaping can enhance tenant appeal while reducing upkeep concerns. Focus on drought-resistant plants, easy-care turf, or even artificial turf for outdoor spaces. A simple, low-maintenance garden is more likely to be well-maintained by tenants, preserving the property’s value over time.
Low Return on Investment or Unnecessary Renovations:
- Luxury Finishes – Tenants won’t pay significantly more for premium materials or designer fixtures. Instead, stick to quality, mid-range, and durable finishes when planning renovations.
- Swimming Pools – While they may seem like a desirable feature, pools can be a deterrent for tenants who don’t want the hassle of ongoing maintenance and cleaning.
- Knocking Down Walls & Major Structural Changes – While open-plan living is popular, making structural changes such as removing walls can be costly and often unnecessary for an investment property. Unless the current layout is highly impractical, we recommend avoiding major modifications.
- Cheap, Short-Term Fixes – Avoid low-quality materials and quick fixes. These often wear down quickly and require frequent repairs, leading to higher long-term costs compared to investing in quality solutions from the start.
Maximise Your Rental Income with Position One Property
By following these tried and tested renovation tips, you can maximise the returns on your investment property! Additionally, engaging an experienced and professional property manager can make all the difference. At Position One Property, we have a trusted network of suppliers and extensive industry experience to support your property needs.
Request a free rental appraisal to understand your property’s earning potential.
📞 Call us today at 07 3843 4511 or visit our contact page to get started!
