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Fine - I'll get back in my box! :D If you can't borrow for it, it's not quite as attractive a deal. And as the OP is currently living there, a re-fi may not be an option. KGB - you live there. What would YOU want done if you were renting? You may be able to answer your own question.

You mentioned that the place is "pretty basic and no-frills". So I wouldn't be too fussed about the bedrooms - again, a little blow heater for the 30 minutes people generally spend before sleep will heat the room up enough. And they can get another doonah! :D Those gas wall heaters are usually...

4/ Cleanliness. If necesary. paint the walls and steamclean the carpets. I wouldn't worry about the ducted cooling - you've already got reverse cycle and seriously, for the number of really hot days we get here, the tenant can buy their own portable A/C if the reverse cycle doesn't cut it.