Basically skummy house equals skummy tenants.
Sad but true.
Over time a property will deteriorate, and if left too long, this will cost heaps.
Before you do any renovations, get accounting advice as to whether it is tax deductible, or it has to be capitalised on the books.
The next step is to do the costings and find out whether you will be able to get a rent increase.
Are we renovating to maintain good tenants and existing income?
Or are we renovating to increase the income?
Answering all the above questions will help you assess whether you should renovate or not. For example, if you spend $8,000 and can get an extra $20 per week, this will give you a gross return of 13% on the extra investment.
May not be silly, eh!