Upgrading your rental property is a smart way to increase its value and appeal, but it can become tricky when tenants already live there.
As a landlord, you must respect your tenant’s right to “quiet enjoyment” as outlined in their Residential Tenancy Agreement. This means tenants are entitled to occupy the premises without undue interference, and landlords must provide reasonable notice before accessing the property for repairs or improvements.
That said, it’s still possible to make valuable upgrades to your property during a tenancy – provided the tenant agrees. The key is to focus on tenant-friendly upgrades—those that not only increase the property’s value but also improve the tenant’s living experience. Let’s explore some of the best upgrades you might make with tenants in place, and when it’s wiser to wait until the property is vacant.
Tenant-friendly upgrades
1. Installing air conditioning or heating
Air conditioning and heating systems are often high on a tenant’s wish list, and they can make your property much more attractive to both current and future tenants. The installation is generally non-invasive and can often be completed without significant disruption. Given the benefits, tenants are usually receptive to this improvement.
2. Upgrading appliances
New, energy-efficient appliances like dishwashers, ovens, or washing machines can add immediate value to your property. They enhance the home’s functionality, and tenants may benefit from improved convenience and potentially lower energy bills. These updates are relatively simple to implement and don’t cause major disruption, so they’re ideal for completing while tenants are in residence.
3. Minor kitchen or bathroom updates
Small upgrades, such as replacing kitchen cabinet doors, updating countertops, or installing new bathroom fixtures, can modernise your property without causing major disruption. Tenants may appreciate these small enhancements, especially if they improve the functionality and aesthetics of their living space. Just be sure to schedule work at a convenient time and provide fair notice to respect your tenant’s routine.
What about adding a granny flat?
Building a granny flat can significantly boost your rental income by creating an additional rentable space on your property. However, your current tenants might not be as enthusiastic. Adding a granny flat will reduce their backyard space or may require them to share amenities like a driveway. In addition, they’ll also have to put up with the disruption that comes with construction. If they do agree, it’s reasonable for them to request a rent reduction or other compensation.
When to wait until the property is vacant
Some renovations are simply too disruptive to carry out while tenants are living on the property as they interfere with daily life. Examples include:
- Full kitchen or bathroom renovations: These projects involve multiple days or weeks of work and would render the space unusable for tenants.
- Complete interior painting: It’s nearly impossible to paint an entire home without major inconvenience.
- Carpet or flooring replacements: Removing and replacing floors is disruptive and difficult to complete with tenants in place.
- Structural changes: Adding rooms or making significant alterations to the property layout can create noise, dust, and safety concerns, making it impossible for tenants to live there comfortably.
Balancing benefits
By focusing on tenant-friendly upgrades that enhance both your property’s value and your tenant’s living experience, you can create a win-win situation. Clear communication and fair compensation will help ensure that your tenants are on board with any improvements you make. If you’re unsure how to approach upgrades, consult your property manager for advice on how to negotiate effectively and keep both parties satisfied.
Contact us today for expert advice on navigating improvements during a tenancy and making the most of your property upgrades.
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
