Most investors think of interior design as something for the home they live in. But in a competitive rental market, design is one of the few things an owner can control that affects rent, vacancy and the quality of renters a property attracts.
The trick is spending in the right places. Good design for an investment property isn’t about luxury for its own sake. It’s about choices that renters will pay for, that last and that don’t push your costs past what the rent can justify.
Start with the Renter, not the Trend
Every location has a typical renter. A two-bedroom unit near a hospital attracts different people from a four-bedroom house near good schools. Before choosing a single finish, ask who will live there and what they’ll pay more for.
Young professionals value good lighting, a functional kitchen, storage and a space to work from home.
Families look for durable floors, a practical laundry, outdoor space and separation between living areas.
Downsizers and long-term renters want quality, low maintenance and easy access.
Where design spending pays off
Kitchens and bathrooms. The rooms renters judge first. A refreshed benchtop, new tapware and good lighting often deliver more than a full rebuild.
Flooring. Hard-wearing floors like hybrid planks or quality tiles reduce wear, cleaning and replacement between tenancies.
Storage. Built-in robes, linen storage and a well-planned laundry are high on renters’ lists and inexpensive relative to their impact.
Lighting. Layered lighting changes how a space feels in inspection photos and in person.
Neutral, durable palettes. Timeless finishes appeal to more renters and date more slowly than bold trends.
Outdoor areas. A usable balcony or courtyard can be the difference between two similar listings.
Where to hold back
Overcapitalising happens when you spend more than the property can earn back in rent or value. Common traps include high-end appliances renters won’t pay for, delicate stone and timber that marks easily and custom joinery that limits how a future owner can use the space. If a dollar spent won’t come back through rent, lower vacancy, reduced maintenance or resale value, it’s probably better left in your pocket.
Compliance comes first
There’s been a noticeable trend towards luxurious marble veined backsplashes. These bring timeless elegance and sophistication to kitchen spaces.
Elevate your kitchen’s sophistication with these opulent marble veined backsplashes, adding a touch of timeless charm.
Choose marble tiles or slabs for your backsplash. Create a luxurious feel, and pair them with under-cabinet lighting to enhance their allure.
Timing your refresh
In Queensland, rent can only be increased once every 12 months, and the limit applies to the property rather than the tenancy. Works between renters are usually less disruptive and give you the best chance to reset the rent to market. The Queensland Government’s rental law changes page explains the rules.
Don’t forget depreciation
New fittings and furniture you add to a rental property can generally be depreciated, which reduces the tax on your rental income. Structural work, such as a new bathroom, is usually claimed as capital works at 2.5% a year. If you bought a second-hand property after 9 May 2017, you generally can’t claim the previous owner’s fittings, which makes your own additions more valuable. The ATO explains capital works deductions. Ask a quantity surveyor to update your depreciation schedule after any works.
Design starts before you buy
The best interiors in the world can’t fix the wrong property. Location, land and floor plan do most of the long-term work, which is why many investors get advice on buying the right property before they think about finishes. For higher-yield property such as rooming houses, where each room is leased separately, design decisions are even more closely tied to income, because every room has to work as a home in its own right.
Frequently asked questions
Does interior design increase rent?
It can, when it improves what renters value, such as kitchens, bathrooms, storage, light and durability. It also helps reduce vacancy and attract longer-term renters.
Should I furnish my investment property?
It depends on the market. Furnished properties suit short-term and corporate renters and some specialist rentals. Most long-term renters prefer unfurnished homes.
Can I claim renovation costs on my rental property?
Structural work is generally claimed as capital works over time, while new fittings and furniture are depreciated. Repairs may be claimed immediately in some cases. Speak to your accountant about your situation.
How do I avoid overcapitalising?
Compare your planned spend with the rent and value it’s likely to add, and focus on durable, high-impact areas rather than luxury finishes.
Our View
Good design for investors is disciplined design. It makes a property easier to lease, cheaper to maintain and more appealing to the right renter, without spending money the rent can’t support. The best results come from planning the design around the renter and the numbers from the start.
Planning a refresh or fit-out for an investment property? Book a free consultation with Studio Gaxa. We work with investors from Sydney to Brisbane. Call (07) 3543 9090 in Queensland or (02) 9053 9090 in New South Wales.
This article is general information only and is current as at October 2026. It isn’t financial, tax, legal or building advice and doesn’t take into account your circumstances. Rules and standards change, so confirm current requirements with the relevant authority and get advice specific to your project before you act.
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