Tenant requesting an Air Conditioner...

[jaycee]

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.

Some people are different to you... I get it.... Hardly a surprising fact (?)

For me it comes down to accepting this sort of thing is part of what you have to deal with in resi property investing, the reality of dealing with human beings (which, before we forget... we are too, although I know we're all superior ones of course ).....

 

[KoopaTroopa]

Hi guys, here's a draft of the email I plan to send to my PM:

------------start draft----------

Hi PM,

I've taken some time to think about this request and have come to the following conclusions.

Unfortunately under my current financial position, I am not able to meet the request for the air-conditioner.

However, for the air-con, I am happy for the tenants to install an air-conditioner (pending my approval) at their own expense provided the unit stays in the house if/when they decide to leave.

So to recap:

1) Air-con, I am happy to re-negotiate the weekly rental amount if the tenants want to install an air-conditioner at their expense. Please go ahead with quotes, but under no circumstances should any installation proceed without my final approval. I would like it in writing that should they decide to go with this path, that the unit stays in the house if/when they leave the property.

------------end draft----------

Can you guys suggest any ways to make it more "friendly" and amenable so that it's more likely that the tenant will agree to pay for the installation of the Air-Con and have it stay in the house if they leave?

 

[KoopaTroopa]

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...

The only issue with the don't want to spend the $2k because I want to save it to put towards the IP.

Yes I have plenty of equity, but will changing my loan structure to do the LOC option have some kind of negative effect on my plan to buy the second IP?

 

[jaycee]

The only issue with the don't want to spend the $2k because I want to save it to put towards the IP.

Yes I have plenty of equity, but will changing my loan structure to do the LOC option have some kind of negative effect on my plan to buy the second IP?

It's up to you if you want to put in an airc on for any reason.

In answer to your 2nd question, I don't know - it sounds like it depends on your own Savings, Salary, LVR levels etc, so someone would have to go through the figures with you / you woudl have to go through the figures to find out I guess.

This is what I hinted at earlier when Rixter suggestied why don't you just do the LOC option..whether you ahd enough equity to spend on an aircon....

Rixter assumes (as per his reply) that you have plenty of equity, otherwise you would not be able to use it to buy another IP......

 

[JoshyBoi]

I would take out the word 'decide to' from 'if/when they decide to leave'...and instead say 'if/when they leave'...read as follows...

 

[KoopaTroopa]

I would take out the word 'decide to' from 'if/when they decide to leave'...and instead say 'if/when they leave'...read as follows...

interesting...any reason why?

If it stays, is it putting the idea in their heads in a subliminal-type way?

i.e. by removing it, I am making it a non-idea?

 

[wylie]

Hi guys, here's a draft of the email I plan to send to my PM:

------------start draft----------

Hi PM,

I've taken some time to think about this request and have come to the following conclusions.

Unfortunately under my current financial position, I am not able to meet the request for the air-conditioner.

However, for the air-con, I am happy for the tenants to install an air-conditioner (pending my approval) at their own expense provided the unit stays in the house if/when they decide to leave.

I think this is fine to here. But the bit under that is underlined has me confused. It sounds to me like you will re-negotiate the weekly rental amount DOWNWARDS. Is that what you want?

So to recap:

1) Air-con, I am happy to re-negotiate the weekly rental amount if the tenants want to install an air-conditioner at their expense. Please go ahead with quotes, but under no circumstances should any installation proceed without my final approval. I would like it in writing that should they decide to go with this path, that the unit stays in the house if/when they leave the property.

------------end draft----------

Can you guys suggest any ways to make it more "friendly" and amenable so that it's more likely that the tenant will agree to pay for the installation of the Air-Con and have it stay in the house if they leave?

I think the bit underlined has to be either left out, or maybe you are happy that they install at their expense and you will not increase their rent at the next review.... or whatever you are happy with.

 

[kathryn d]

Wylie is right.
Do not reduce your rent.

 

[JoshyBoi]

interesting...any reason why?

If it stays, is it putting the idea in their heads in a subliminal-type way?

i.e. by removing it, I am making it a non-idea?

Cos you may want to kick them out...and if so, then technically they didn't decide to leave and can take the unit with them...

Agreed re wylie's comments too...unless you've already offered to reduce the rent, I wouldnt even put it in their mind...if you feel compelled to do something then yeh, no increase at the next review is a smarter option...

 

[KoopaTroopa]

Wow you guys are great, thanks.

1st, yes I'd rather not decrease the rent. It was an option suggested in page 1 of this thread which I thought wasn't a bad option, but I like the idea of not even suggesting it in the first place better!

2nd, JoshyBoi great point about "decide to", I don't plan on kicking them out but then again you never know! Might as well remove the loophole, thanks.

Okay here are the changes based on feedback from all you guys. I think I'm happy to send this to my PM, but figured one last check with somersoft before clicking "send".

------------start draft----------

Hi PM,

I've taken some time to think about this request and have come to the following conclusions.

Unfortunately under my current financial position, I am not able to meet the request for the air-conditioner.

However, for the air-con, I am happy for the tenants to install an air-conditioner (pending my approval) at their own expense provided the unit stays in the house if/when they to leave.

So to recap:

1) Air-con, please go ahead with quotes (I am happy to consider any tenant preferences of unit and placement), but under no circumstances should any installation proceed without my final approval. I would like it in writing that should they choose to go with this option, that the unit stays in the house if/when they leave the property.

------------end draft----------

Thank you guys in advance!

I added the bit about being happy to consider the preferences of the tenant regarding the unit and the placement of the unit. In an effort to show that they have a more "personal" role in the decision.

Thoughts on that little addition?

 

[wylie]

------------start draft----------

Hi PM,

I've taken some time to think about this request and have come to the following conclusions.

Unfortunately under my current financial position, I am not able to meet the request for the air-conditioner.

However, for the air-con, I am happy for the tenants to install an air-conditioner (pending my approval) at their own expense provided the unit stays in the house if/when they to leave.

If the tenant wishes to pay for installation and agrees to leave it when they vacate, I would need that in writing. I would also need to give my approval for the (brand of the unit and the) positioning of the unit before it is installed.
------------end draft----------

Thank you guys in advance!

I added the bit about being happy to consider the preferences of the tenant regarding the unit and the placement of the unit. In an effort to show that they have a more "personal" role in the decision.

Thoughts on that little addition?

I would change as I have suggested in red. Giving them the ok to go ahead and get quotes without reiterating that it is to be at their expense is a little "loose" and "vague" for me.

I was going to suggest you approve the brand, but really, if it breaks after twelve months because they have used a cheapo brand, you have lost nothing, except bear in mind your next tenant will want it repaired.

So maybe you need to give approval to the brand as well so that there is more certainty of it last longer than these tenants.

I would not think the tenants will pay for it, but you have explained why you cannot afford it and have given approval for them to install it themselves. It us now up to them.

 

[kathryn d]

I would take out the "if/when" and change it to just "when".
All tenants leave.

Ours left..and took our ceiling fan light with them last week
Yeah..we get a new light courtesy of them
Gotta love tenants !!!

 

[KoopaTroopa]

Okay I sent it with Wylies red paragraph, took out the "decide to" and also removed the "if/when" and now it just says "when".

I'll post back the results if anyone is interested.

Thanks everyone for your input. You have to love these forums

 

[kathryn d]

what address should we mail our bill too?

 

[neK]

I would also specify the brand of air con being installed.

(ie have them get a quote and forward it to you and make sure it states the air con brand).

Last thing you want is for them to shell out for a cheapy A/C then when they move out it breaks and you have to replace it for the next tenant because it was already there.

 

[Whozat]

My tenant wants an airconditioner too!

Similar to the earlier post - my tenant wants an air-conditioner in the IP which in this case would cost around $2500. As they are 6 months into the first year of a one-year lease I can't increase the rent till July, but don't really want to shell out $2500 - $3000 without the prospect of a reasonable return on that expense.

I realise I don't have to agree, but the PM believes they are good tenants who are likely to stay a long time.

Was thinking that I would offer to install it on the understanding that their rent will increase $20 at the end of their lease. ($10 for aircon and $10 for end of year lease increase)

Or, should I just install it and increase the rent by that amount at the end of lease anyway, with no need of negotiation?

 

[kathryn d]

Similar to the earlier post - my tenant wants an air-conditioner in the IP which in this case would cost around $2500. As they are 6 months into the first year of a one-year lease I can't increase the rent till July, but don't really want to shell out $2500 - $3000 without the prospect of a reasonable return on that expense.

I realise I don't have to agree, but the PM believes they are good tenants who are likely to stay a long time.

Was thinking that I would offer to install it on the understanding that their rent will increase $20 at the end of their lease. ($10 for aircon and $10 for end of year lease increase)

Or, should I just install it and increase the rent by that amount at the end of lease anyway, with no need of negotiation?

How long have you owned this property?
Before the tenant moved in, why didnt you install one then?
Of course the PM thinks it is a good idea, they are not paying for it.
Your PM doesn't know if they are staying a long time anymore than you do...and asking for stuff doesn't make them good (IMHO)

 

[wylie]

Was thinking that I would offer to install it on the understanding that their rent will increase $20 at the end of their lease. ($10 for aircon and $10 for end of year lease increase).

They might not stay on anyway. Could you get another $20 with air-con in the rental market if they move on?

Or, should I just install it and increase the rent by that amount at the end of lease anyway, with no need of negotiation?

If you borrow the $2500 to install that comes to less than $5 interest per week IO. I wonder if you both could mutually cancel the lease (not sure if this can legally be done, but if both parties are happy to rip up the lease and sign a new one I don't see why it cannot happen?) and sign a new twelve month lease starting the end of January (peak leasing period in many areas) at the higher rate?

We have had tenants request air-con but not want to pay anything extra, so we have said "sorry - we need to recoup some of the cost" and let them sweat. However, as tenants leave, we are adding air-con split systems and asking for a little more rent ($10 to $20 per week depending on the house/area).

 

[.toe]

Similar to the earlier post - my tenant wants an air-conditioner in the IP which in this case would cost around $2500. As they are 6 months into the first year of a one-year lease I can't increase the rent till July, but don't really want to shell out $2500 - $3000 without the prospect of a reasonable return on that expense.

I realise I don't have to agree, but the PM believes they are good tenants who are likely to stay a long time.

Was thinking that I would offer to install it on the understanding that their rent will increase $20 at the end of their lease. ($10 for aircon and $10 for end of year lease increase)

Or, should I just install it and increase the rent by that amount at the end of lease anyway, with no need of negotiation?

If they want it, will they pay extra now regardless of lease? If they pay $20pw and the repayments on your $3k loan increase at 8% are $4.60pw there's $15.40pw free cashflow. While your deprciation claim takes care of the capital outlay.

If there is a time to add aircon it's when the tenant says they'll pay extra.

 

[Ed Barton]

Similar to the earlier post - my tenant wants an air-conditioner in the IP which in this case would cost around $2500. As they are 6 months into the first year of a one-year lease I can't increase the rent till July, but don't really want to shell out $2500 - $3000 without the prospect of a reasonable return on that expense.

I realise I don't have to agree, but the PM believes they are good tenants who are likely to stay a long time.

Was thinking that I would offer to install it on the understanding that their rent will increase $20 at the end of their lease. ($10 for aircon and $10 for end of year lease increase)

Or, should I just install it and increase the rent by that amount at the end of lease anyway, with no need of negotiation?

air conditioning is very desirable in a rental.

up it 20 now and more on review.