Air con In IPs

Im Sure a thread similar to this has been Posted somewhere along the line,

although i couldnt seem to find one.

peoples thoughts on Air Conditioners in rentals?

Currently renovating a 2bedroom unit In Adelaide and just speaking with the agent she has mentioned it will increase the rent by approx $20 per week.

my initial thoughts were an air con is just another thing that can go wrong in an IP.

Do they make a property that much more desirable for a renter?

say i spend 2k on an aircon unit, and increase the rent by another 20 dollars per week, give it two years and its paid itself off, although i will be paying interest as all renos have been put on top of the loan.

also with the heatwave in Adelaide at present, it could make the Vacancy rate on the unit lower.

thoughts ????
 
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The last thing that you'd want to do is make the place more attractive to a tenant than the next place. Why would you want a competitive advantage??

Remember, not only are you getting the tax deduction for the interest but you are also getting the depreciation benefit as well.
 
Im Sure a thread similar to this has been Posted somewhere along the line,

although i couldnt seem to find one.

peoples thoughts on Air Conditioners in rentals?

We've added air-con to our rentals over the years. Definitely helps them rent quicker.

Currently renovating a 2bedroom unit In Adelaide and just speaking with the agent she has mentioned it will increase the rent by approx $20 per week.

my initial thoughts were an air con is just another thing that can go wrong in an IP.

We have only just now got an air-con that has stopped working. Tenant doesn't use it anyway and has agreed that we don't fix it. Tech says lack of use could mean geckos have got into it and that if we repair or replace and tenant doesn't use it, they are likely to get in again. So, we will wait until this tenant leaves and have it serviced/replaced.

We do write into our leases that filters must be cleaned monthly and that if a call out is required and it has been caused by filters not being cleaned, the tenant will pay for the repair. I don't know if we can enforce this, but if it gets them to clean the filter we are half way there.


Do they make a property that much more desirable for a renter?

Yes.

say i spend 2k on an aircon unit, and increase the rent by another 20 dollars per week, give it two years and its paid itself off, although i will be paying interest as all renos have been put on top of the loan.

also with the heatwave in Adelaide at present, it could make the Vacancy rate on the unit lower.

thoughts ????

We've definitely found having air-con a big plus for renting.
 
I'd say definitely given the Adelaide summers. We've put aircon into a granny flat just to make it more desirable where there's lots of rentals available to tenants. If there was extra rent that would be a big bonus.
 
I agree with putting air cons in IP's as well.
I think having A/Cs attract a better quality tenant (or at least increase the pool of tenants so you get a better chance of picking a good one).

Given 1/3 to 1/2 the cost the of an air con is the install, I put Daikins / Panasonics in.
 
Looks like ill just have to bite the bullet,

now the fun part... trying to get an aircon installed by the 10th feb.

every aircon mob in town will be flat out due to this heatwave thats going on in the city of churches at the moment !:eek:
 
Why do you need it before 10th Feb?

If that is when one lease finishes and you'll be looking for a new tenant, simply write into the lease that the rent is $300 per week for the first month, and $320 per week after that to allow enough time to get it installed.

Make sure it is clearly advertised that air-con is being arranged.
 
Why do you need it before 10th Feb?

If that is when one lease finishes and you'll be looking for a new tenant, simply write into the lease that the rent is $300 per week for the first month, and $320 per week after that to allow enough time to get it installed.

Make sure it is clearly advertised that air-con is being arranged.


Currently Being Renovated, is vacant At the Moment.

would prefer to have it done before then but as a last resort, that seems like a good idea, thanks.
 
Hi JRP,

Not sure how many a/c units you're planning to install in each unit, but something I often recommend to my clients is to just put in one in the lounge. Locate it so that the air flows down the hallway and towards the bedrooms.

This means on the hottest of nights, tenants can leave the bedroom doors open if necessary and still get the benefit of the cool air.

Of course this only works for smaller dwellings and the layout needs to be suitable.

Also, make sure bedrooms and lounge also have fans.
 
Buy it with a LOC etc, adds a few bucks a month in interest repayment, but you get $20 more so the cost is well and truly covered, plus depreciation benefits

I had a split AC installed few week ago for a western sydney property.. I was sure it had wall rattler when I bought it but I was mistaken.... tenants used to go to a motel on really hot nights to escape the heat so they were very happy to pay a bit more rent to have stay at home comfort. Cost $1400 all up for a good quality Mitsubishi Electric which adds stuff all to repayments.

Dont be tempted to buy a cheapo yum cha AC system for an IP, the $100-200 you save will be eaten the first time you have an issue in service call, vs a quality system that will just run for 15-20 years.
 
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