Does security features add value and by how much?

[tvadera]

Hi All,

I have gone through most of the threads, but couldnt find any thread or any post which talks about security features for a PPOR/IP.

With number of burglaries on the rise and worse house being burgled with owner/tenant inside at the time of incident.

Does any of you think that IP with security features would attract long term tenants and for PPOR does it add value and by how much approx?

I have come up with below security features:

1) Security door at the front of house and back
2) Security sensor/alarm system
3) Video monitoring equipment
4) Roller shutters for windows

Based on your exp can any one elaborate which ones are needed for a headstart and sort it with price/benefit aspect

Thanks,

TV

 

[Jamie M]

Personally - I wouldn't pay extra for these added measures - whether buying or renting. I'd also try avoid living in a place where such measures are necessary.

Cheers

Jamie

 

[Rolf Latham]

I'd also try avoid living in a place where such measures are necessary.

Cheers

Jamie

that might be a common view

ta
rolf

 

[Propertunity]

$0 value add.

 

[BuildingBlocks]

These WOULD be value adds on extremely high end properties though.

 

[Doovalacky]

My last IP I installed an alarm system. Each tenant gets a note saying that it can be activated for zero cost to dial their mobile. Or setup for monitoring at no cost bar the monitoring fee.

I have had one tenant in 4 years request the mobile feature. Obviously this is going to vary based on the perceived risk of the area.

 

[MangoMadness]

As someone with a young family and concerned with security in any suburb, I would be willing to pay a small amount extra for added features like roller shutters and an alarm system. Maybe 5%? extra

Camera's dont interest me much and I might be concerned you have put some in the shower or bathroom and want to perv on my handsome body

 

[tvadera]

Hi Jamie,

I agree that dont stay in a place where such measures are necessary, however Melb as a whole has since increase in crime, violence, thefts, robberies, etc.

So its better to have preventive measures, isnt it? I am just trying to weigh things like say if you ever make a claim for house and contents insurance ,then next year insurance premium would go up, isnt it?

Personally - I wouldn't pay extra for these added measures - whether buying or renting. I'd also try avoid living in a place where such measures are necessary.

Cheers

Jamie

 

[BV]

I think 1 is essential and 2 would be good to have.

I disagree with those who believe that security devices add zero value.
I think they make an IP more rentable and offer an advantage over other properties so you are more likely to achieve a higher rent and retain a tenant long term.

How much more rent depends on how valuable these are to a tenant but I think 1 and 2 would be expected these days

 

[Aaron_C]

I think those features are only necessary for a property that is worth quite a bit of money as it is. If it's only a 300k house I wouldn't really bother...

 

[rugrat]

I don't think they would add $ value, but they might make your place the more attractive out of a few that didn't have the security features. But I would be keeping the features simple. Most people don't like complicated 'technology'.

 

[Bargain Hunter]

Security doors are standard. I would go for shutters before security monitoring or CCTV. Too much security on a low end property make me question the area, on a high end property it would be just another feature. Either way I wouldn't consciously pay extra for security features.

 

[skater]

Personally, I'd do the security doors, and leave it at that.

I would suggest you look at the area. How many of the homes in the immediate vecinity have those kinds of measures? Are the homes of a similar standard to yours? If all the homes have shutters on the windows, then it might be expected, but if they don't, it could be money spent with no real value add to you.

BTW, I have many IPs in Western Sydney and have never had a request for any of those measures, and as far as I know none of my IPs have been broken into either.

 

[RumpledElf]

What are you starting from? A standard level secured house or one that is ultra-low security?

Personally I like houses where you can lock the windows, although they are helpful in the renovation stage when you forget a key and you can just hop in. Deadlocks are also very good to have and you haven't mentioned those and lots of houses don't have them, so get them if you don't. Although the really old style locks have the advantage of only having 16 keys or so so you can buy replacements at the hardware store

Security screens are a must, you can open the front door and hide from the jehovas witnesses and phone salesmen. That said, I just built a house with no front screen door, just because the builder didn't offer the option. There's a window right next to the front door though.

We chose to have keyed window locks and our insurance went down by $10 a month.

 

[wylie]

$0 value add.

I would agree with this, except for high end properties, where a back to base alarm is probably expected, along with all the other "high end" things expected.

These WOULD be value adds on extremely high end properties though.

I am always amazed at the fact that new tenants never even ask for the locks to be changed, let alone a higher level of security. We have had back to base monitored alarms for 20 years on our own houses. It is something we would install if we moved again.

My parents' house is rented, has a back to base alarm, and security on most windows (but not all - you need to be able to get out in case of a fire ) has had two lots of tenants, neither of which has taken up the alarm offer. It is only $5 per week to have it monitored but they have not taken it up.

I think if comes down to whether or not you are used to having these things. I would miss them, but that's because we are used to having them.

 

[Propertunity]

The things that add value to a house are:
1. Number of bedrooms
2. Number of bathrooms
3. Number of car accom
After that it is decks for outdoor entertaining.
After that it is the quality of the kitchen, bathroom, paint, floor coverings and window treatments. Then views (water beats bush beats suburban), then orientation i.e. North facing rear.

Security doors, screens etc are just expected as "standard".

Security systems, CCTV, shutters etc are just "nice to haves" (although on high end property they become "standard" again, not that most people buy high end property for an IP). They can make the place more attractive to a tenant who in turn may pay a bit more to rent a place with them. But on a sales / revaluation issue, these things are a $0 value add in my experience.