If you previously rented the property and removed it from service to do the renovations, you can deduct the expenses related to the property. If the property had not been placed in service, the expenses are not deductible as rental expenses. Also, if you bought the property and then renovated to rent, then you would add the renovation costs to your cost basis of the property when you place it in service. If it was previously a rental, you would add the renovation costs as a separate asset. The rental agreement has no bearing until the property is "available" to be rented.
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