Tenant requesting an Air Conditioner...

K

KoopaTroopa

Hi all,

My tenants have put in for an air-con to be put in, but I'm in the throes of sorting out my finances so I can put in an offer on a property I'd like to be my 2nd IP.

So I can't really afford/spare a few thousand to pay for air-con for the house.

I'm presuming that I am under no obligation to actually comply with their request, but I'm wondering how have you guys handled something like this?

I think it's pretty minor compared to some horror stories, but I'd like to decline their request in a tactful and "nice" way so I'm looking for advice on how to say no.

Another thing is when the time comes I would actually like to put in an air-con but want to use it as a kind of bargaining chip in increasing the rent.

History: They've just started a new 12-month renewed lease a few weeks ago and that included a rent increase of $15 a week, so I don't really want to broach the idea of increasing again as an incentive for the air-con when I do want to put it in.

Thoughts? (Thanks in advance!)
 
Tell them that with your approval they are welcome to install one. ;)

You are right, you have no obligation to do this. You may down the track want to (with a rent increase) to make it more appealling however. If they wanted an air conditioner, maybe they should have found a house that already had one, but perhaps those ones cost more. :rolleyes:
 
Just tell them your financial position at this time will not allow you to fit an air con unit. However, they are more than welcome to have one installed at their own expense as long as it is approved by you and it stays when the tenant vacates the premises.

Boods
 
KoopaTroopa said:
Hi all,

My tenants have put in for an air-con to be put in, but I'm in the throes of sorting out my finances so I can put in an offer on a property I'd like to be my 2nd IP.

So I can't really afford/spare a few thousand to pay for air-con for the house.

I'm presuming that I am under no obligation to actually comply with their request, but I'm wondering how have you guys handled something like this?

I think it's pretty minor compared to some horror stories, but I'd like to decline their request in a tactful and "nice" way so I'm looking for advice on how to say no.

Another thing is when the time comes I would actually like to put in an air-con but want to use it as a kind of bargaining chip in increasing the rent.

History: They've just started a new 12-month renewed lease a few weeks ago and that included a rent increase of $15 a week, so I don't really want to broach the idea of increasing again as an incentive for the air-con when I do want to put it in.

Thoughts? (Thanks in advance!)
Click to expand...
if you say no - you can't afford it with interest rate increases.

if you say yes - only if they pay more rent.
 
ive had this issue several times........

best option to advise in writing, both to sign: they are welcome to install one at their own expense but the unit must stay when they leave.

you will be surprised that most will accept...
 
If you think it's a worthwhile improvement - and it probably is - it may be that the tenant's cashflow is better than yours, and they may be amenable to a proposal as follows:

* tenant pays for install, air-con becomes property of landlord
* assume it costs $3K, which would be $60pw over a year
* air-con attracts extra $20pw in rent
* tenant can pay the $3K for install, and have $40pw lower rent for the remainder of the 1 year lease - effectively you're repaying them for the air-con at a rate of $60pw over a year, and they're paying $20pw extra rent - everybody's happy! You start getting higher rent today, without a large capital outlay. :cool:

I hear what others say about just asking the tenant to pay for it, and the landlord retaining ownership with no contribution by the landlord... it may be legal, but personally I wouldn't feel comfortable making such a request. :eek:
 
I negotiated with a tenant to put in 2 box type a/c's. One second hand (about $180 on Ebay) and the other one brand new (about $700 with extended warranty). I think we negotiated an extra $10 week rent. So in 2 years both these were paid for. The IP is in a small country town and I wanted the tenants to be comfortable... and stay. Both the boxes were reverse cycle. The new one with an extended warranty.

Your a/c plans might be grander. If the tenants are willing to pay more I'd go for it even if you have to buy interest free. Or let them put it in and take some of the earlier suggestions.
 
If the tenant is asking then it's worth looking into. What about offer a choice, you throw in ceiling fans in the rooms for nix (cost you $150 per room installed, raise rent next year), there's good faith. Or you put in air, and raise rent say $20, then contact Harvey Norman and see about a no-repayment for 24 months deal. But don't do the deal till your new IP financier goes unconditional. Sweet.
 
Tenants request things all the time. I will rarely oblige unless it is something that I wanted done. I don't know about you, but I bought my properties to benefit me in retirement, not to pander to the whims of the tenant. Anything other than maintenance (mine are all well maintained) cuts my bottome line.

I usually tell the tenants that they leased the property "as is". The rent they are paying is in line with a property of it's calibre in the area it is situated. Adding extra amenaties make the property worth more in terms of the rent a tenant will need to pay. I will give them the option of having it installed professionally at their cost, if they really want it, with the provison that it remain on the property.

Mind you, if there is an existing air-con there that does not work, then that is a different story, and I would get it done. We recently had this issue. The PM told me that the Tenants had rung up and asked for the air-con to be repaired or replaced. Mind you, it hasn't worked for three years, but we were unaware of that, and so was the PM. She had a chuckle when the Tenant told her. Apparently the Tenant did not want to bother us, so kept quiet, but she said it was getting a bit hot this year, so she would like it done. :eek: A new one is on the way, as we speak.
 
KoopaTroopa said:
Hi all,

My tenants have put in for an air-con to be put in, but I'm in the throes of sorting out my finances so I can put in an offer on a property I'd like to be my 2nd IP.

So I can't really afford/spare a few thousand to pay for air-con for the house.

I'm presuming that I am under no obligation to actually comply with their request, but I'm wondering how have you guys handled something like this?

I think it's pretty minor compared to some horror stories, but I'd like to decline their request in a tactful and "nice" way so I'm looking for advice on how to say no.

Another thing is when the time comes I would actually like to put in an air-con but want to use it as a kind of bargaining chip in increasing the rent.

History: They've just started a new 12-month renewed lease a few weeks ago and that included a rent increase of $15 a week, so I don't really want to broach the idea of increasing again as an incentive for the air-con when I do want to put it in.

Thoughts? (Thanks in advance!)
Click to expand...

First of all, you are under no obligation to put the aircond. However, it would be nice to provide it. I was in the same situation and my tenant proposed to pay for 50% of the aircond and installation. He wrote also that he won't claim title on it or part of it neither that he expects any rental decrease. He just wanted some fresh air. It took me by surprise and I just said to the PM to go ahead after he pays in full his half. :cool:
 
We are in the canberra area at the moment.
Out of curiousity,has anyone even used their a/c yet this spring/summer?

We don't even have it in house we are staying, and it hasn't been hot yet..has it?
 
kathryn d said:
We don't even have it in house we are staying, and it hasn't been hot yet..has it?
Click to expand...

I'm in Melbourne and I'd say air conditioning isn't necessary in the south of Australia. I have it in my car, and use it maybe 3 times a year, if that. I don't have it in my apartment and have never felt it ever needed it. We do get the occassional really hot day, but I think they are rare. Then again, any day under 30 degrees I consider cold, so maybe it's just me.
 
If houses were built properly here, a/c wouldn't even be needed.

We have been visiting the old homesteads here in Canberra, and they are naturally cool inside (on 30c) days.
Maybe contractors should start building homes for this country.
 
Holy Sh_t! 14 replies, thanks guys!

Great advice, I like the idea of getting them to do it at their expense. Seems a little selfish, but I'm sure we all agree this is "business" and I should do what's best for me.

I'm not a "mean" landlord, I'd like them to be comfortable and stay there forever if they want. They are good tenants, pay on time, and haven't given me any trouble.

They didn't even flinch at the rental increase (they are the first tenant, have finished 12 months, and are in month 1 of their second 12-month lease)

They were there all summer last year and didn't say anything, but I suspect they "know what it's like" in the house so now want air-con.

You guys have given great advice, and I am most thankful!

For the record, the house was basically brand-new when they moved in so there was no air-con already. Just the house with all-new fittings (oven, stove, etc)

Thanks again, I'll post back what happens if people are interested.

BTW, I guess this is a rhetorical question but I should tell my PM to tell them my intentions right? I don't need to write a letter or anything and send it to the tenant directly, or would that be a good idea anyway? What do you guys think about that? (written explanation as to why I can't afford it...so as to appear more "approachable" to the tenant?)
 
kathryn d said:
If houses were built properly here, a/c wouldn't even be needed.

We have been visiting the old homesteads here in Canberra, and they are naturally cool inside (on 30c) days.
Maybe contractors should start building homes for this country.
Click to expand...

my god, 30 degrees is not hot! thats winter!! ;-)

you southerners are soft as ice cream! :)

try 45 thats a bit warmish...
 
kathryn d said:
We are in the canberra area at the moment.
Out of curiousity,has anyone even used their a/c yet this spring/summer?

We don't even have it in house we are staying, and it hasn't been hot yet..has it?
Click to expand...

HELL YEAH !!!! Australia's a big place one city can have a maximum of 10 degrees or 25 degrees and another can have 35 or 45 degrees.

We've had days with nearly the hottest temperatures we get in summer already here in Perth this year.
 
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