Property Investment Tips: Renovating an empty property

By the resi financial blog team, 19 May 2014

Renovating an empty property

Whether you opt for a fixed or variable rate loan, there are plenty of opportunities available to improve your investment property. It's not always about buying a house or apartment that's ready to be rented out, either.

By using loan features such as a line of credit, you can upgrade the home in order to make it more appealing to future tenants. One approach that's popular is to wait until an investment property is empty before completing renovations. 

While timing is paramount, if you find yourself in a situation where your investment has no tenants, consider making the most of the time to freshen the space up. There are plenty of benefits to renovating during this time.

No need for notice

From refurbishing the kitchen to adding an extra bedroom, there are plenty of renovations that can add value to your home. However, some renovations require significant work and could affect tenants' abilities to enjoy the property of their own accord. 

If you choose to make renovations of this kind, there's a high chance this could conflict with tenants' rights to quiet enjoyment of the property. 

However, if you find yourself in a situation where tenants have moved out and you're yet to find new ones, you might decide to renovate instead. Given that the space is empty, you won't need to worry about giving notice or a rent rebate due to loud construction work and the like!

Time to research

If your investment property is a one-bedroom apartment in the CBD, you'll likely be attracting different tenants than if you owned a three-bedroom villa in the suburbs located close to primary schools.

Safety catches on windows may appeal to young families, while young professionals or even retirees may appreciate a home office decked out with ample built-in storage.

Having time on your side to research who future tenants could be, then renovating accordingly could be less stressful compared to a situation where there are tenants currently in the property.

Once you've renovated the space, you might consider setting it up with some basic furniture so it looks like an attractive living space, rather than something that's bare.

Categories: Property Investment