Tenant demands reasonable?

I have a family wanting to rent my IP, but they would like to me to add another TV point ($200) and install an A/C in the master bedroom $1-2k).

I figure it is a reasonable request, as I have rented much worse houses with no A/C and if there was only one thing I could have, it would have been A/C. Yes or No?

They also wanted a 2-3 year lease with $10/wk increases included somewhere, but I said no to that as I figured they would renew again once the 12 months is up anyway and I can increase rent then as well so I don't want to run the risk of locking myself out below market value.

What is reasonable really depends on what you are willing or unwilling to do. If you are willing and able to spend the money on these things, then by all means do so - it will likely make your property more attractive in the future. If not, then don't. There is nothing unreasonable about the requests, but at the same time there would be nothing unreasonable about refusing them either.

Only thing with the A/C, if you don't have another in the property already, and wish to add one, I would seriously be considering where you put it. They may want it in the master bedroom - but you need to think about where it would service the house best, because these tenants may or may not be there a while, and different tenants may have different preferences. Living areas are usually a good spot.

Yeah, there is already one in the living room. My guess is that room is dedicated to the kids and they want their own TV and A/C in the master bedroom. I am not a heartless ******* and know how much not having an A/C sucks and how undesirable a place is without one, but unfortunately it means I am probably going to have to stay in this **** hole a little while longer to pay the costs of an A/C (when I don't have one myself in the place I am renting, the irony!) and I could have been leaving within a couple of weeks now I've finished my community service.

They are requesting things that are over and above what was offered in the first instance. As such how much more are they willing to pay over and above the current asking price rent wise?

If they are not willing to pay more and the IP was market priced against similar properties in the area did these similar properties have the requested amenities?

Not sure where property is based which may impact the AC question but there is enough rental demand in Sydney to turn down the request and get another prospective tenant quick time, So this is what I would do on the assumption that they will not want to pay extra.

Cheers

Bon, who is in control here, you or the tenant. As handyandy says, if they are prepared to pay more rent than advertised, then add the features. Otherwise they can take it or leave it as is.
If you give in, they will just keep asking for more later. You need to set the rules, and make the tenant understand that there are consequences to them if they ask for to much.

Yeah, that's pretty much how I feel now.. but, I've already told the real estate agent yes and suspect he's told the tenants yes by now. Is it too late to go back on my word?

If these are brand new tenants and already makeing demands, i'm going to guess this won't be the last time you'll hear from them.

Haha...

They seemingly intend to stay for a long period of time though, as they already have their own house (closer to the city) and want to live in the area because their kid is going to a school nearby. $2k for long term tenants who are going to be there for 3-4 years is not a bad investment if it is the only demands they make which should be likely, considering it is a brand new house that has just been finished and withstanding emergency repairs there shouldn't be anymore demands over that period.

Bon said:

Haha...

They seemingly intend to stay for a long period of time though, as they already have their own house (closer to the city) and want to live in the area because their kid is going to a school nearby. $2k for long term tenants who are going to be there for 3-4 years is not a bad investment if it is the only demands they make which should be likely, considering it is a brand new house that has just been finished and withstanding emergency repairs there shouldn't be anymore demands over that period.

Click to expand...

What about a carport - 'the car gets really hot'

What about a paved backyard - ''the kids are traipsing mud through the house"

What about a pool - "its getting really hot in summer and the kids so love to go swimming"

What about a dishwasher ......... the list goes on

And all predicated on an extended stay - but sorry we have been transferred and can't stay till the end of the lease.

I think you have hooked into a onpo (occupy new property only) tenant they never last as the property doesn't stay nice and new.

Cheers

Double garage, baby!

Backyard is paved!

!@#$ the pool, it's Melbourne!

It has a dishwasher!

they really are spoilt now aren't they

may aswell finish it off then

and maybe ask your landlord for an aircon ?

Bon said:

Double garage, baby!

Backyard is paved!

!@#$ the pool, it's Melbourne!

It has a dishwasher!

they really are spoilt now aren't they

Click to expand...

If I had a pool on the 7th of Feb when it hit 47C (in the shade) I wouldn't have had any need to boil the kettle.


Personally, I'd look at a ceiling fan in the bedroom. Cheaper and does the job.

jaycee, you're right! LOL

we live in a 2 bedroom unit with a huge backyard that is $170/wk (anywhere else would be $250-$300+/wk)... $85/wk for a room is cheap as it gets and it's actually a nice unit in good condition despite being older. Don't plan on being here long term anyway so it's no big deal to me, especially right now in Winter when I run around in boxers and shorts... I will be gone before summer anyway, no doubt about that!


Bradsdad, I assumed they wanted the A/C for the cold weather more than anything... you guys have no idea of what hot weather is down there!


It's no big deal, I am gonna have to get off my *** and get a second job for a month to pay for this A/C, then I am out of here. I've already spent 18 months here, I'm sure 1 more month won't hurt!

Bon,

Two things.

All good and well putting more money into IP, as this is a good inclusion, and hopefully, you will be able to ask for higher rents.

However, have you looked into getting insulation put in instead. The federal government has got the Low Emission Assistance Program for Renters / Landlords, and they will give give assistance up to $1000 for getting insulation put in to you IP. This is pretty good. I am currently looking at putting this into all my IP's at the moment.

I have recently got a quote for my PPOR, as they are also giving up to $1600 assistance for homeowners through the Homeowner Insulation Program. (My living space is about 180m2 and the cost of supplying and installing is $1590) I will be ordering this soon, as it will be a freebie from the government. As I am on the Sunny Coast, I didn't realise that the insulation can have a dramatic effect on heating and cooling temperatures, and can also save your tenants a few hundred bucks a year of the electricity bills. I think it is a win win scenario.

Secondly, with reference to your query about fixing into a 2 - 3 year lease, I would be wary with this. Provided you have done (or your agent has done) all the relevant checks and history with the tenant, I would settle for a six month lease. After 6 months, you can see how well it is going, and can lock into for a longer period of time. I have done this with one of my tenants. He didn't have any history behind him, as he had his own home. He wanted to lock in for two years, but as he had no history, my agent advised me to do what I said above.....get him on a six monther first and see. He was paying considerably more than the market rent in the area, but he is always late with rent, and hasn't been paying his water rate allocation, so I will soon have to reavaluate this to see if it is worth him staying on.

I gues it depends on the area, but it is sometimes much harder to get tenants out of your house, than getting them in!!.

Let us know what you decide.

Cheers

I would do those two things but raise the rent by 20% of the outlay.

So if it costs $2,000. I would want another $400pa in rent, or $8-10 per week.

Plus I would benefit from the deprecitaion increase of these chattles which will likely be close to the increased rental amont as well.

cheers,

RightValue