Tenant wants air con

Hi everyone,
I'm sure you have had this one before but I'll ask none the less.
The house is only a couple of years old and I have already fitted additional screens, fans and allowed dogs. I have done all this to keep the tenant happy as they always pay rent on time and generally look after the place.
They have now requested an additional A/C unit during the last inspection aswell as additional shading outback. I can't help but feel as though I'm being pushed around by a some long time and very experienced renters.
I am willing to entertain the requests but feel I should not have to keep forking out $$$, where does it end??
They are good tenants and I would like to keep them so I am after some opinions from some more experienced landlords or PMs
Rent increase is due in a month so maybe could tack on some extra $ to this??

I Would appreciate any feedback.
Thanks team,
Adz
 
Increase rent by $20 week. $2000 for AC out of a LOC/offset is $110pa increased interest, you get $1000pa more rent. Sounds like a good outcome
 
Agree with above. Offer the option of increased rent -don't do it for free.
We rent and have no fly screens -when I did ask, it was a flat no. Would have been more than happy to pay the extra for them.
 
Do what DaveM says. We do what we want to increase the attractiveness and often do this when we know a tenant is leaving, knowing we can bump up the rent by more than the cost of the air-con or security screen we are putting in.

For a sitting tenant, I would offer to do it in exchange for extra rent. If they say no, I say no.
 
There other option is that you allow the tenant to make their own installations using a qualified contractor and with your approval prior to installation and they are to rectify the works upon leaving.

You really should be talking to your PM and they should be giving you the advise.
 
You are allowed to say no. In the past you have always said yes and they will keep asking for everything as you have been generous. With the rental review and request for an extra $20 to cover the air con as suggested by the others is fine but dont forget to add extra to keep up with inflation and the market. $20 is the min. you should increase!
 
I do not own an IP yet, however, see it very similar to running a business.

I'd say there are a few options.

1. You simple say no. No money will come out of your pocket, however, you may annoy the tenants.

2. You agree and pay for the upgrades. The tenants are happy but you feel like you're spending money on something you wont see a return from.

3. You agree to pay for the upgrades, on the condition the tenants pay a higher rent to offset.

In business I always look for a Win-Win outcome.
 
Maybe even have the tenants pay extra rent for a set amount of time to offset the upgrades also. Id always keep in mind that they are your customers and you probably need them more than they need you.
 
Hi

If it were me I would tell them you are concerned with the idea of upkeep and maintenance of the aircon not just while the current tenants are in the property but for the life of the aircon whatever that maybe. It also means that should the aircon die and stop working one day you will be forced to replace the system as whoever the tenant at that time is will be upset and complain stating the aircon was part of the property when leased. Perhaps you can throw in an example here of when something needed to be replaced in the past in an investment property such as a garage door motor.

Once you tell the tenant all of the above it makes look like you are doing the tenants a favour and then you offer them that you will have a an aircon supplied and fitted in the property but you need to recoup your costs for the system as well as allow for any possible annual cleaning of the aircon and any possible maintenance it would require. You also need to cover for the future for when it needs to be replaced and based on this you will need to charge at least an extra $20 per week.

Doing the above shows you are not disagreeing with the tenant's request but showing them you are negotiable and want to keep them happy but don't want to burn yourself and need to cover your costs.

So this way you get to fit the aircon to keep your tenants happy, probably get your money back in two years and your property will be earning a higher rent and be more attractive to future tenants.

I would not tell them to fit it themselves and have them remove it when they leave. Sure you can repair an internal plaster hole and paint it but holes in external brick work and other areas look crap even after they have been patched up.

Best of luck.

Regards,

alicudi
 
Tenants can just but a portable a/c unit. They're pretty cheap these days. The tenant seems to have the mentality that the landlord is some kind of "big mama" and its just gimme gimme gimme. Not on, I'm afraid.
 
Not having a tenant in the house for a month or losing a good tenant can make the cost of an a/c look cheap.

Cost of A/C adds value to rental property, offset against your tax anyway

Can attract better rent, keep good tenants.

I don't see it as an unreasonable request

Just my opinion
 
If the rent review has already been done ie is due next month, then you are stuck with the current agreed review for the next 12 months. If not yet agreed, then follow the above suggestions to recoup the installation costs.
 
Not having a tenant in the house for a month or losing a good tenant can make the cost of an a/c look cheap.

Cost of A/C adds value to rental property, offset against your tax anyway

Can attract better rent, keep good tenants.

I don't see it as an unreasonable request

Just my opinion
+1
I don't perceive this to be a concern. Having a sub-optimal tenant or an empty property is a concern. I'd put in the a/c and just adjust rent on the new lease. Maybe I'm not as dollar hungry as some. I'd politely refuse the shade request though.
 
If the rent review has already been done ie is due next month, then you are stuck with the current agreed review for the next 12 months. If not yet agreed, then follow the above suggestions to recoup the installation costs.

Not necessarily. The "increase" can be done via a new lease between the parties.
 
Not necessarily. The "increase" can be done via a new lease between the parties.

No, you can't just cancel a lease and draw up a new one. You are contracted to that lease for the set time.

A lease would mean nothing if you could rip it up and make a new one if you didn't like it.

Yes an AC does increase the value of the property. It also increases the rental demand so I'd be asking for more rent. Give the tenants the choice.
AC + higher rent.
No AC and lower rent.
At least that way they'll have a choice and they may stop asking for things thinking they can get whatever they want.
I love good tenants but I'm not going to be out of pocket to subsidise their wants.
 
No, you can't just cancel a lease and draw up a new one. You are contracted to that lease for the set time.

A lease would mean nothing if you could rip it up and make a new one if you didn't like it.

Step one: Mutually agree with the tenant to terminate the current lease.

Step two: Draw up a new lease with rent increase and air conditioning as a provided fixture.

No ripping up of leases required.
 
I Would appreciate any feedback.
Thanks team,
Adz

Get yourself a better PM.
A good PM knows how to handle these requests and keep everyone happy.

Example:
  • I advise PM that there is no A/C in this property. I can put one but it will be $15-$20 more per week.
  • PM tells me to hold off and see how things play out.
  • Tenants move in, then decide they want an A/C. PM told them that he'll speak to me, but the expectation is that there will be an increase of $20 minimum.
  • Tenants says they'll think about it.
  • They get back to the PM about 1 month later.
  • A/C installed, variation to rental contract is done, rent is jacked up.

Everyone is happy.
 
Yeah Spades, NFA rice is the best...don't stock the rest lol.

Actually NFA stands for No Further Action (on a file). Where I worked one time I was able to complete the greatest number of (let's say customer/client) files by choosing NFA files. They took 2 minutes to complete. I'd spend the rest of the day "looking busy"

Boss thought I was a superstar lol....till a co-worker dobbed me in lol.
 
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