Psychology of IP Expenses eg repairs

[Property Meister]

whats your view?

if a tenant/real estate agent requests something to do with your IP, assuming the quote/price is reasonable, do you compare the $$$ with your weekly rent OR potential rental increase for the next 12 months?????

Does your decision making process depend on whether the IP is fully paid off or 100%LVR????

A conversation I had with my recently settled IP got me thinking, there is already a few applications on it, agent is happy with one particular one, however, when the agent went through it apparently, it had an old persons smell and a few marks on the wall, both I did not notice at the final inspection as I was checking other things, the agent has suggested actually more like told me that I need to get the carpets steam cleaned and get a cleaner in to remove marks off the wall. An airconditioner was mentioned as well

the cost of the cleaning is going to be approximately 1 weeks rent, or 1 years rental increase, the aircon, im going to receive a quote shortly

my initial reaction which I didnt say because I didnt want to come across as stingy was "the person has seen it, and is happy with it, put in an application, why should I spend a weeks rent?"

my 2nd reaction was "why put in an aircon when the applicant hasnt even mentioned it???

so my question is two-fold,
do I risk coming across as stingy or getting off to a bad start with this new agent who basically hinted that it was a requirement to get it cleaned?

AND
do you put it into perspective of weekly rent, and are you more lenient if say you paid it off long ago or your yield is very very high due to rental increases over a long period of time?

 

[kathryn d]

I'm in the stingy category.
If the applicant is happy in the condition it is presently in, at the price advertised, why spend more money to make the PM happy?

If the carpet needs steam cleaning, then do it.If it is accpetable in the present condition, do nothing.

PM's seem to love spending LLs profits.

 

[BMan]

as above if the future tenant is happy they why do it? if they request and a/c see if they are prepared to pay extra for one that could cover the IO repayments of it
as for the carpets steam clean them and then if they look good get photos incase the tenants put stains on them

and to answer your other question
i guess if your making good money off it you might do these things to get a few deductions from them
other than that its really up to you i guess if you had an a/c then the tenants might b more comfortable and may stay longer
some things might not gain you rent but could increase your chances of getting a tenant in compared to other places if the market is struggling

 

[our obsession]

I do consider requests for anything, although I really haven't had that many, one I can think of recently was an extra internet line in one of my newer IP's for tenant's student child to study, (they paid), all my IP's have heating and cooling because the areas I invest in have more extreme weather from summers to winters, it gets freezing come winter, and extreme heat come summer. So that's a no brainer (for me) , oh, some of the shrubs died during the drought, and the same tenant wanted to know if it was okay to replace them, (they bought new shrubs).

I just can't recall anything else, but yes, I would consider and weigh up anything. When my IP's are ready to rent out they are well presented, good heating cooling, clean, as well maintained as possible, they all have carports, garages, I do try to present them as 'well presented' IP's.

 

[lizzie]

I don't think of it as in "rent for a week".

I think of it as in "is it necessary?" - like the recent $1,500 spent when my bath waste sprung a leak on the second floor of a block of units - of "does it improve my property?" - getting old person smell out of the carpet would fall into this category.

As for aircon - I wouldn't do anything until the tenant asked, and then consider. I am assuming it's not a super classy place as old person smell in the carpet usually means old person patterned carpet ... but I could be wrong.

 

[kathryn d]

I do love that term "old person smell". Is it something like doggy odor?

 

[pully]

bad smells can be vile and very off putting.

we saw a lovely property on the internet, went to inspect and it smelt awful!

it was beyond filthy feet. we think it had moved into the carpet in a near permanent way. foul.

such a shame the property is still there after nearly 6 months. smells can get into almost anything. need to be dealt with promptly.

yes i would have the carpets cleaned no question in the case of the tenancy.

cleanliness and expect the same when the tenancy ends.

 

[Property Meister]

some interesting answers expressing both views,

my view is that if there has been more then one application, then obviously the problem is not that significaint, then let it be,

some are saying that they would since we would expect the tenant to clean on their way out so, so should we. That being said if between after cleaning and tenancy if a rat died in the middle of the lounge room, im sure the tenant isnt going to put a dead rat when they decide to leave to make it the same condition as when they entered, and im sure they are nt going to remember the "old persons" smell nor take that into consideration in determining what condition to leave it in. That is unless its a bad tenant.

as for old persons smell, I didn't notice as I focussing on other things, I suggested that we open all the windows or use some sort of spray, but the agent was pushing towards getting the carpets cleaned,

ill probably just get it cleaned, and see assess how she handles the whole tenancy period from now on

 

[TEG]

I think when you buy a rundown IP, or when tenants move out of your IP, this is an excellent opportunity to fix up the place, (i.e spend the $$) to make the IP stand out, (i,e put in new kitchen, flooring, bathroom resurfacing, BIW, painting, etc..)

This strategy will increase the value of the property, increase the rent, attract better quality tenants, less maintenance costs, ability to get a depreciation schedule for reno costs).

 

[lizzie]

as for old persons smell, I didn't notice as I focussing on other things, I suggested that we open all the windows or use some sort of spray, but the agent was pushing towards getting the carpets cleaned,

I think that's the right choice. Opening windows and spraying will get rid of the smell briefly - but as soon as the house is closed up again the smell comes back ... and if it's closed up during a work day in summer it would smell pretty awful to come home to.

 

[wylie]

The house we sold nearly a year ago had been lived in by a couple of tenants - smokers - for 15 years. We had to sugar soap the walls and ceiling to get the sticky yellow residue off and painted the whole house.

We also ripped up the shag pile carpet squares (brown, blue, mottled mixture, different colour in each room - lovely ).

We ripped out the kitchen and bathroom and installed new ones.

We just could NEVER get the "stale" smell out of that house, though there was nothing that could be holding the smell except perhaps between the floorboards?

We used to burn candles before open for inspections and with all windows open it would be better, but going into it after it was closed up was always slightly nose-wrinkling.

Oh well... it is not our problem any more. We never had any agent or tenant ever mention it, but I could definitely smell a "stale" smell. Perhaps 15 years of cigarette smoke had penetrated the plaster ceiling?

 

[kathryn d]

There are machines you can buy, and we have one, and I can't think of the proper name. It is an ionizer, I think.

Companies that deal with smoke smells, also use these machines.
They leave it on for about 24-48 hrs, when there is no one living in the place.

Hotels use a very concentrated spray for smoke odors.

If the nicotine is 15 years old, it won't help that....we had a tenant like that once too.Unit needed a complete make over.

 

[wobbycarly]

*snip*
the agent has suggested actually more like told me that I need to get the carpets steam cleaned and get a cleaner in to remove marks off the wall. An airconditioner was mentioned as well
*snip*

I would get the marks tidied and the carpets cleaned, so there are no arguments about the incoming and outgoing inspection reports.

Only put the AC in if you can get more rent.

 

[pully]

agree about the damage smoking does to the inside of a property. hate the smell of stale smoke too.

we do not permit smoking inside.

another thing that we do not like is the smell of cheap disinfection or air freshners at open inspections. we always wonder what the vendors are trying to conceal.

 

[wobbycarly]

agree about the damage smoking does to the inside of a property. hate the smell of stale smoke too.

we do not permit smoking inside.

another thing that we do not like is the smell of cheap disinfection or air freshners at open inspections. we always wonder what the vendors are trying to conceal.

Expensive ones ok?

 

[kathryn d]

There are machines you can buy, and we have one, and I can't think of the proper name. It is an ionizer, I think.

Companies that deal with smoke smells, also use these machines.
They leave it on for about 24-48 hrs, when there is no one living in the place.

Hotels use a very concentrated spray for smoke odors.

If the nicotine is 15 years old, it won't help that....we had a tenant like that once too.Unit needed a complete make over.

It's an ozone generator

 

[geoffw]

I was once offered a property which had more than old people smell. It had an indentation in the floor where a person had died and lay undiscovered for some time.

I didn't get it, but for more mundane reasons. There was a lot of empty land in the suburb, and values in the suburb had been steady for ten years.

 

[Property Meister]

It had an indentation in the floor where a person had died and lay undiscovered for some time.

Dead people become heavier??????

 

[geoffw]

Probably worms in the carpet and floorboards.

 

[D.T.]

Dead people become heavier??????

Yeah, because as soon as they stop eating correctly and working out... bam goes on the weight.