Is ducted air con worth extra $50pw rent?

[sunshine]

Hoping someone can clarify what ducted air con in an IP would be worth rent wise?

Having loads of issues with one of my IP's and one of the issues is that the ducted air con is not working. It has been suggested that I reduce the rent by $50 pw. I thought $20 would be more suitable? What do you think?

Sunshine

 

[Ocean Architect]

50 pw = 2600 pa
20 pw = 1040 pa
fixing aircon = a good idea

 

[wylie]

I have a figure of $20 per week in my head for air-con. That is what I estimate we can get extra by putting in a split that services the main living areas, and flows through to bedrooms.

Ducted costs more (generally - depending on layout and size) but to be honest, doesn't make the house cooler than ducted (unless it is a BIG house). Our PPOR and my parents' house both are ducted, and the bedrooms really are poor cousins when it comes to cooling.

So a good split, cooling main rooms, with a bit making its way to the bedrooms works just as well as ducted, in my experience of PPOR and IPs.

I think $50 per week reduction because ducted is not working is way overkill.

I do know that with our eleven year old ducted system, if it broke down, we would probably replace with two splits, cheaper to run than the old ducted and less noisy.

Maybe look at replacing the ducted system with a couple of splits?

 

[DaveM]

$20-$30pw.

 

[sunshine]

The quote to fix the approx 15 yr old ducted system is around the $5000 mark. Looking into other options (like a couple of splits perhaps) hence there will be a delay. The rent reduction is only short term.

Appreciate the advice.

Sunshine

 

[Ace in the Hole]

Wouldn't it depend on other factors too, like how much the rent is?

Surely a for a luxury property demanding $2000/week rent, $50 a week may not even be enough of a reduction if air con is not working.

Not saying this is the case here.

 

[RenoTeam]

Could you ask the current tenants to sign a 2 year lease upon having the ducted heating fixed? Reducing the rent by $20 sounds fair whilst you organise putting in splits. I'd call your accountant too, just to see which financial year (this one or next) that would be of more benefit to your finances

 

[Nathan]

I work on proviso my capital is doubled and I earn 40% on every $1 spent.

Spend $2000 on AC I want 40% or $800pa or $15.

if its $5000 I want $40pw.

Hope these figures help.

 

[Ocean Architect]

$5000 to fix a ducted unit? something doesnt sound right. More quotes

 

[Perp]

Could you ask the current tenants to sign a 2 year lease upon having the ducted heating fixed?

Boy, would that get you in trouble if the tenant complained! As a landlord, you're obligated to maintain the facilities which tenants are paying for. Why would they want to sign a longer lease just after suffering the inconvenience of having temporarily lost their ducted cooling?

I'd call your accountant too, just to see which financial year (this one or next) that would be of more benefit to your finances

If the tenant wants it fixed, that's irrelevant - it has to be fixed ASAP unless the tenant agrees that they're happy to be without it.

Sunshine, I agree with Ace in the Hole, it all depends what level of property it is. As an air-con lover, I wouldn't consider $50pw remotely compensated me for the loss of amenity (unless rent is like $200pw!).

 

[wylie]

Having read other answers, I would add that my figure of $20 is for our IPs that are renting for mid $400 per week.

I agree that a high-end property renting for $700 per week I would reduce it more if necessary whilst having the problem fixed. Right now, in Brisbane, I would try to just get it fixed. Middle of summer would be different but between seasons, you have time to get it sorted without extremes of temperature.

The houses we have installed splits in are small(ish) queenslanders with layouts that allow air to flow into bedrooms because they run off the living areas.

We could replace our ducted with two splits (largish, open plan living area) for around $6K or a little more, depending on size of units.

 

[sunshine]

The rent is currently in the low $400s per week so I think $20 is more than adequate, especially as it is not mid summer or winter.

The tenants will not be staying.

Sunshine

 

[Perp]

Ah, I'm sensing there's more to this story, Sunshine, and that if these were tenants with whom you didn't have a history, you may be more receptive. That's not a criticism, but an observation; we're all human.

I agree that it shouldn't have much of an impact in the current SE QLD mild weather, I guess just try and get it fixed ASAP. In the middle of summer, $50 would be reasonable, IMHO. But if you want to lose the tenant anyway, I guess just offer $20 and allow them to exercise their option to break lease if they're not happy with that. Your new tenant may be happy to rent it as a non-air-conditioned property.

 

[sunshine]

Your spider senses would be correct perp. These tenants have not been on a fixed lease for some time now. They are now getting help to move along.

Nothing is good enough for these ones I am afraid, but they haven't moved because they can't find anything as good!!!!! In their short time there, everything electrical has either been fixed or replaced and I won't go on about the other issues. The PM and myself are definately over it!

Sunshine

 

[sunshine]

I work on proviso my capital is doubled and I earn 40% on every $1 spent.

Spend $2000 on AC I want 40% or $800pa or $15.

if its $5000 I want $40pw.

Hope these figures help.

Thanks for these figures Nathan.

I have just finished a reno which I spent around $2000 and I have increased the rent by $20pw. I was thinking I should have had a higher return on my money. I am happy now.

Sunshine

 

[skater]

Your spider senses would be correct perp. These tenants have not been on a fixed lease for some time now. They are now getting help to move along.

Nothing is good enough for these ones I am afraid, but they haven't moved because they can't find anything as good!!!!! In their short time there, everything electrical has either been fixed or replaced and I won't go on about the other issues. The PM and myself are definately over it!

Sunshine

I had to have a little chuckle, sorry. It is always the ones where nothing is good enough for them that seem to have many maintenance requests. Oh well, I'm sure you'll be glad to see them gone.