i have a rental property that I may eventually move in to. I’m wanting to know when can i do renovations on the house and claim it as rental deductible? Is there a timeframe of which the house needs to be rented after renovating before it stops being a rental property?
Hi @ZoeF,
You can claim renovation expenses for your rental property when the property is rented out or genuinely available for rent. Be sure to keep records of your expenses and evidence that the property was available for rent.
Once the property is ready and genuinely available for rent, you can claim ongoing rental expenses.
You can’t claim deductions from the point your intention changes. For example, if you decide to use the property for private purposes instead of renting it out, deductions generally stop from that time.
Renovations would more likely be capital works, and maybe some depn items.
Deductions would only be for repairs due to rental period.
Thanks Bruce - are you able to expand on that?
say I wanted to renovate the kitchen - is there a time period after the works have been completed that I need to rent the property out?
Usually when you are renovating you are making improvements to the structure of the dwelling. (i.e new bathroom, kitchen) These can only be depreciated at 2.5% per year (capital works). Any new fittings (i.e carpet, stove, heat pump) are capital allowances that are depreciated over their effective life. Repairs (such as painting) due to tenant damage or wear and tear can be claimed in the year that the property is earning income, so after a tenant moves out you can claim this expense before June 30.
Your rental property stops being a rental property once it is no longer rented or available for rent.
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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