Tenant requesting an Air Conditioner...

No I don't, it's just a standard mortgage that I'm on.

If I was to use $2000 it would be from savings or CC, which I don't want to use due to the intent to get a second IP.

So yeah...

Here's a thought....set up a LOC or loan with offset facility as part of your financing structure ie for next IP deposit, purchasing costs & also a buffer. That way you have the option to use it when things like this come along. Using existing equity via borrowed funds to purchase a AC is an effective way to increase your cash flow.
 
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Here's a thought....set up a LOC as part of your financing structure ie for next IP deposit, purchasing costs & also a buffer. That way you have the option to use it when things like this come along. Using existing equity via borrowed funds to purchase a AC is an effective way to increase your cash flow.

I hope this helps.

Assumning you have enough equity to do so (?)

Rixter, do you think that's an important consideration and one which not everyone, including the original poster might qualify for ?
 
I wouldn't be able to sleep at night if I didn't even have a $1000 handy as a safety net. What happens if the hot water system blows up?

Anyway- My daughter was renting and wanted AC (new baby) and the owner put one i and increased the rent. Everyone happy. If he hadn't agreed they would have moved.

As they have just signed a new lease this changes things. Is AC is considered standard for the area? If so it will help with future tenancies. If it doesn't make any difference to getting a tenant or the rent I'd be less inclined.
You know the circumstances of the IP. Go from there.

I'm putting AC in all my Sydney places when I renovate.

I had mine on last night. Summer is FINALLY here.
 
Assumning you have enough equity to do so (?)

Rixter, do you think that's an important consideration and one which not everyone, including the original poster might qualify for ?

Yes it a very important issue, why wouldnt it be?

Obviously equity isn't an issue otherwise another IP would not be on the cards for KT
 
Yes it a very important issue, why wouldnt it be?

Obviously equity isn't an issue otherwise another IP would not be on the cards for KT

Perhaps it is an issue, as the peroson was scared that if they sepnt $2k on a c/card or personal loan, they would not get the loan for their 2nd IP which seemd to be one of their concerns...

Just saying...
 
Perhaps it is an issue, as the peroson was scared that if they sepnt $2k on a c/card or personal loan, they would not get the loan for their 2nd IP which seemd to be one of their concerns...

Just saying...

Using a CC is irrelevant because the lenders look at CC's as if fully drawn to credit limit anyway for the purposes of DSR calculations.
 
Lets say it cost $2000 inclusive of fitting for the AC and you use your LOC/offset facility to fund the purchase and installation.

$2000 x 7% = $140 p/a or $2.69 a week increase in your holding costs.

Less 30cents in the dollar tax deduction on the interest bill = $1.88 a week cost to you.

Less depreciation on the AC itself which increases your cash flow further.

Increase the rent say $15 a week and you're $640.00 p/a or $12.31 (pre-tax) a week better off.

I hope this provides another perspective for you KT.

I hope this helps.
 
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Using a CC is irrelevant because the lenders look at CC's as if fully drawn to credit limit anyway for the purposes of DSR calculations.

Understnad, and I understand your explanation of the benefit of doing it via an LOC.

The original poster will know if they are able to use the LOC option better than I would.
 
What about installing ceiling fans if your not got them.
I picked up 6 off ebay a while back, 12 months old for $65
Not sure how much to install them as I had other work included
on my total electricians bill.
 
I just had two split system air conditioners installed in two properties. A new Harvey Norman has opened here, so I got some good prices - 2 x 7.5kw Samsung reverse cycle inverters installed for $3,200.
I also had the option of interest free for 5 years, but prefer to use my visa (my reward points have paid for my xmas shopping this year).
Tenants were happy to pay $20 extra per week, so if I had gone the 5 year interest free option, the rent would have more than covered the cost while adding value.
I consider Air conditioning a necessity in Ipswich.
 
If the tenant pays for it and you don't retain ownership, when they leave and take it, you're left with a hole in the wall ;)
 
Personally, if it were me renting a place that didn't have air-con, I'd just go out and buy one of those little portable units you can get nowadays for under $100. In fact, I've got some junk mail on my desk right now with one on special for Christmas. It's only $69 and has a remote control and caster wheels so you can move it from room to room.
 
Personally, if it were me renting a place that didn't have air-con, I'd just go out and buy one of those little portable units you can get nowadays for under $100. In fact, I've got some junk mail on my desk right now with one on special for Christmas. It's only $69 and has a remote control and caster wheels so you can move it from room to room.



The only problem with them is they seem to be s h 1 t in my epxerience !
The little $59 heater I got is good, but pretty loud I have to turn up the volume on the tv if I use it ....... the movable air coolers I've used over the years before getting permanent aircon were a lot of inconvenience for only a little (unsatisfactory) result.
 
The only problem with them is they seem to be s h 1 t in my epxerience !

That's been my experience too.

We had a tenant years ago who took out the sliding part of a bedroom window and put one of those room air conditoners in the space. He was a shift worker and slept during the day. When he left he took the air conditioner and replaced the window, no holes in the walls.

We have since put air conditioning in both our IP's. I think most tenants expect it these days.
 
The only problem with them is they seem to be s h 1 t in my epxerience !
The little $59 heater I got is good, but pretty loud I have to turn up the volume on the tv if I use it ....... the movable air coolers I've used over the years before getting permanent aircon were a lot of inconvenience for only a little (unsatisfactory) result.

I am not saying that they are fantastic quality, all I am saying is that if I was to rent a home without air-conditioning, I would purchase one of them, not try to get my Landlord to provide something that I was obviously not paying for, or, if I felt that I needed an inbuilt air-con, I would move to a home that had this.

Calling the Landlord is just not something I would do.
 
Only last week we bought a secondhand 2yo 1.75HP Kelvinator box air conditioner for $310, for our detached rumpus room.

It has a nice looking white facade to fit in with our reasonably new room, but will be fitted to the side where nobody sees the box. My husband will fit for $0.

Could this be an option?
 
Calling the Landlord is just not something I would do.

Me either, I have to say, and after a thread on here a little while ago I wonder how often the request is suggested by the PM anyway.

Like other people have said, landlords are under no obligation to provide anything that wasn't there when the tenants signed up for the place. If they wanted air conditioning that badly or anything else for that matter they should have found a place that had it. If the request is something a landlord has been thinking about doing anyway (for an increase in rent), well and good, but if not, a firm ... no deal.
 
I am not saying that they are fantastic quality, all I am saying is that if I was to rent a home without air-conditioning, I would purchase one of them, not try to get my Landlord to provide something that I was obviously not paying for, or, if I felt that I needed an inbuilt air-con, I would move to a home that had this.

Calling the Landlord is just not something I would do.

And I was just sayign that perhaps the tenatn chose not to go that route its the same reason I would choose ot to go that route - cause that route pretty much sucks !

Calling the landlord does not obligate them into anything.
Dealing with "customers" questions and rewqquests is a part of doing buisenss

I don't like receiving requests on things that I don't want to provide etc, cause I don't like saying no - but that's MY problem, people are allowed to ask , you nefver know till you ask, the landlorad might say "look we were going to get one put in, now that you've mentioned it might as well do it earlier"

I think we want "perfect" tenants
 
And I was just sayign that perhaps the tenatn chose not to go that route its the same reason I would choose ot to go that route - cause that route pretty much sucks !

Calling the landlord does not obligate them into anything.
Dealing with "customers" questions and rewqquests is a part of doing buisenss

I don't like receiving requests on things that I don't want to provide etc, cause I don't like saying no - but that's MY problem, people are allowed to ask , you nefver know till you ask, the landlorad might say "look we were going to get one put in, now that you've mentioned it might as well do it earlier"

I think we want "perfect" tenants

Jaycee, I'm not trying to be argumentative. I know what you are saying, but what I'm trying to say is that if I had rented a property that did not have air-conditioning, I would rather sort it out for myself (if that was what I wanted) than ring the Landlord.

If I wanted to live in a home that had air-conditioning, I simply would not even look at one that didn't have it. Period! If I made an error in judgement, then it would be me that had to suck it up and live with it and that might mean buying a cheap portable to see me through until I moved.

I just don't understand tenants that lease a property then ask the Landlord to improve it. Mind you, I don't have any problem telling them that I won't do it either. :D
 
I think tenants in general have no qualms about asking for anything now.

Maybe their friends and family know someone who asked for their LL for an a/c, and got it.
Maybe these same tenants asked their previous LL for an a/c.

I think it is wrong for tenants to ask for anything.
If it didn't come the "xxxx", then the LL didn't want to include it.


I agree with Skater..if it was me, I'd just buy the portable one.
 
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