Air Conditioning - worth the price?

[steve101]

Just wondering if the expense of an air conditioner is worthwhile from an investment point of view? In other words, will tenants pay signficiantly extra for a place with A/C, or is it just a sunk cost?

What about throwing in the use of a portable air conditioner while they're renting to sweeten the deal?

 

[steve101]

Sorry, just realised this should be in the 'add value' forum

 

[Pa1nter]

I believe you should get another $20 a week for reverse cycle A/C .
52 weeks x $20 = around $1000 (Split system fitted)
I would talk to the tenant to see if he is willing to pay the extra,if not don't bother.

 

[units4me]

Even if the rent is the same for an AC vs non AC place, at reletting time, the place wth the AC should (theoretically) rent out faster.

 

[travelbug]

I think it depends where it is located (the property that is).

If it is in a hot area then tenants would look for places with AC.

Split is preferable to window rattlers.

Not sure of the amount of increased rent but I know a few people who have had tenants ask for AC and they have upped the rent and tenants have been happy with that.
My step daughter rented a house and it was very cold. They asked for AC and said they were happy to pay more rent. It was put in. If it wasn't they would have moved as it was too cold with the baby.

So it really depends on location I think.

 

[steveadl]

Biggest factor is comparable rentals in the area. If every property has a/c except yours, guess which will be the last to be let out? May even be you don't get a premium for having a/c but a lower rental price because you don't have one. I know I wouldn't rent a place without one.

 

[steve101]

Really? Only $1,000 for a fitted split system? The quotes I have been getting have been 2 to 3 times that at least, which is why I was thinking I'd go with either a portable ac or an evaporative cooler.

Was doing a bit of research and stumbled across http://portableairconditioner.com.au/evaporative-coolers-vs-portable-air-conditioners/ which basically says if there's more than 20% humidity (which there most certainly is in all of my IP locations), don't bother with the evap cooler.

Anyone have experience with the portable units? Some people swear by em, others say they are noisy and inefficient. I'd rather not go to the hassle and expense of getting a full split system installed, but if a portable unit isn't going to get the job done I suppose I will go for a stationary unit.

 

[RumpledElf]

Get a split system. A proper air conditioner installed properly is infinitely better than anything standalone. And far harder to steal ...

Where are you getting such high quotes from anyway?

 

[steve101]

Good point on the theft angle, that had never occurred to me...

I'd rather not mention any names, but a couple of the 'big guys'.

 

[Pa1nter]

Really? Only $1,000 for a fitted split system? The quotes I have been getting have been 2 to 3 times that at least, which is why I was thinking I'd go with either a portable ac or an evaporative cooler.

Anyone have experience with the portable units? Some people swear by em, others say they are noisy and inefficient. I'd rather not go to the hassle and expense of getting a full split system installed, but if a portable unit isn't going to get the job done I suppose I will go for a stationary unit.

If you need a larger system,you will pay a little more.
A 1hp (2.7kw)reverse cycle split system are continuously on special for around the $400 mark locally and fitting is around $600 (Plug into power point)
You can buy a R/C window model for around $500 and you fit it,at http://www.theelectricdiscounter.com.au,
They deliver

I wouldn't trust tenants with a portable one,they are likely to break it,
Trick is to make your property as foolproof as possible.

 

[craigb]

how was the extra $20 per week decided , i mean why $20 when the depreciation might be over 3 years , so i would expect another say $7 week it gets written off any way,

 

[Pa1nter]

how was the extra $20 per week decided , i mean why $20 when the depreciation might be over 3 years , so i would expect another say $7 week it gets written off any way,

Because I would pay $20 myself for the luxury of AC if I was a renter.

 

[steveadl]

We've got a portable one in our bedroom. It does the job, but if you have the choice - for the same price and noise factor (perhaps slightly less), I'd go for an old fashion box unit in the window. This is of course assuming you only want to spend around $5-600, a small split system for around $1k is what we'd usually do - especially for living areas. Box is ok for bedroom, but living go split.

 

[mystery]

how was the extra $20 per week decided , i mean why $20 when the depreciation might be over 3 years , so i would expect another say $7 week it gets written off any way,

I've just spent $1200 including installation of a brand new 2.5hp reverse cycle wall unit (the old one packed in). I have increased the rent $10 per week with no hassles from the tenant, ..... he's just happy to be able to cool the house once again, .... plus it's easier and cheaper than moving.

Martin

 

[steve101]

Interesting... there aren't many home improvements that would pay for themselves in just over 2 years.

Are there any ongoing maintenance costs?

 

[RumpledElf]

We have 3 window airconditioners in total - two RC, one cooling only, one of the RC ones is ancient and rattly and lost most of its plastic casing but still works perfectly, the others are 1 and 2 years old. Zero maintainence costs. You're *supposed* to change the filters every year but noone does and they just keep working. We took the filter in the one in our kitchen (one of those country dine-in kitchens) out to wash it though, before we had an exhaust fan over the stove the aircon was picking up the oil in the air and smelt like food every time we used it. All good now the exhaust fan is in, but this is one to watch - don't put ACs too close to a cooking area if your rangehood is a bit poor.

After quite a few years you might need a regas. Inlaws have a big split system that blows air around more than cooling it and it SO needs a regas but they just mutter about it ...

 

[888]

go for ceiling fans, it's cheaper, nature friendly and IMO does better cooling than a/c at night because you can keep it on all night and you don't have to wake up to turn it on if it's too hot or turn it off if it's freezing in the middle of the night as you do with a/c

 

[Rixter]

go for ceiling fans, it's cheaper, nature friendly and IMO does better cooling than a/c at night because you can keep it on all night and you don't have to wake up to turn it on if it's too hot or turn it off if it's freezing in the middle of the night as you do with a/c

ISnt that what a thermostat does on the AC. You keep the AC on all night and the thermostat keeps it at your ideal room temperature.

 

[Rixter]

Just wondering if the expense of an air conditioner is worthwhile from an investment point of view? In other words, will tenants pay signficiantly extra for a place with A/C, or is it just a sunk cost?

What about throwing in the use of a portable air conditioner while they're renting to sweeten the deal?

If you spend $2500 on AC or anything else for that matter its only increasing your expenses by $2.88 p/w @ 6% borrowings. Im sure you could increase your rent by at least a min $10.00 p/w....and the borrowing is fully tax deductible plus the AC/item is depreciable.

None of your own money in the deal, increased your rent, increased your cash flow from tax advantages, and increased the property's attractiveness to tenants - a nice piece of value adding if you ask me!