Tenant wants air con
- Thread starter Adz
- Start date
The lease is just an agreement between 2 parties. It can be changed by mutual consent at anytime to contain any conditions provided they are allowable under the legislation (like Residential Tenancies Act) and provided they are not harsh or unconscionable. As always , other provisos apply but that's the gist of it. Very easy.
So if the tenant requests a split aircon and the 2 parties agree to go ahead with installation and increase the rent by $20 pw, then the PM just changes the front page of the lease plus adds clauses relating to the tenant's responsibility of maintenance of the aircon, like regular filter cleaning. If they don't clean the filters regularly, the roller fan and cooling fins clog with sticky fluff stuff, the aircon underperforms, tenant complains, and requires a handyman to call to clean it. Tenant should pay for that.
I'd definitely instal one with an extra $20 per week. You should get 10 years out of it.
Good luck
Cheers
crest133
So if the tenant requests a split aircon and the 2 parties agree to go ahead with installation and increase the rent by $20 pw, then the PM just changes the front page of the lease plus adds clauses relating to the tenant's responsibility of maintenance of the aircon, like regular filter cleaning. If they don't clean the filters regularly, the roller fan and cooling fins clog with sticky fluff stuff, the aircon underperforms, tenant complains, and requires a handyman to call to clean it. Tenant should pay for that.
I'd definitely instal one with an extra $20 per week. You should get 10 years out of it.
Good luck
Cheers
crest133
What you need to understand, is that owning rental properties is a Business, so treat it like one.
Firstly, when a tenant signs a lease, they sign it for the property "as is". If they want extra features, then they need to pay extra for it. As it's your property, it is up to you to decide if those features are something that will increase the value, or the remuneration makes sense to have the work done.
Secondly, as a Business, you should look to maximise your return, and minimise your expenses. So this means making sure that your rent is at market rates, and shopping around when you need to spend money on the place.
In your instance, I would either:
1) Get a rental appraisal for the property without the aircon, let them know that this is the new rent, and if they want aircon, it will be an additional $20pw. Then let them choose, aircon or no aircon.
2) Still put the rent up, if that's what the appraisal suggests, but they have the option of paying and installing the aircon themselves (must use qualified tradies), and the unit remains after they leave.
Firstly, when a tenant signs a lease, they sign it for the property "as is". If they want extra features, then they need to pay extra for it. As it's your property, it is up to you to decide if those features are something that will increase the value, or the remuneration makes sense to have the work done.
Secondly, as a Business, you should look to maximise your return, and minimise your expenses. So this means making sure that your rent is at market rates, and shopping around when you need to spend money on the place.
In your instance, I would either:
1) Get a rental appraisal for the property without the aircon, let them know that this is the new rent, and if they want aircon, it will be an additional $20pw. Then let them choose, aircon or no aircon.
2) Still put the rent up, if that's what the appraisal suggests, but they have the option of paying and installing the aircon themselves (must use qualified tradies), and the unit remains after they leave.
Hi everyone.
After getting 3 quotes for the air system, a $20 p/w increase was put forward...and declined. Therefore no air was fitted to the property.
I'm sure it may prove to be a warm summer but you can't help those whom won't help themselves I guess.
On the plus side, they do have a near new system already installed and will have to make do with just the one.
Thanks again
After getting 3 quotes for the air system, a $20 p/w increase was put forward...and declined. Therefore no air was fitted to the property.
I'm sure it may prove to be a warm summer but you can't help those whom won't help themselves I guess.
On the plus side, they do have a near new system already installed and will have to make do with just the one.
Thanks again
Shame you didn't just put it up by $20pw anyway if the property was up for a rent review
This! Especially as you said
Like I said earlier, treat it like a business. If it is due for an increase, then give it an increase regardless of whether or not they are requesting upgrades. Then let them know that if you agree to an upgrade the rent is going up FURTHER.
You can look at a request like this as a pain in the *** or as an opportunity.
Having a split system aircon installed should cost you less than $2k. Depending on whether your place is near the ocean or not, it will last between 5 and 15 years and it will cost you maintenance over that time on a near-annual basis. As a rule of thumb, I calculate appliance-type investments as being worth $5/wk rent per $1k spent. If a tenant asks for them, I know they want it and just ask for double.
So in this case I would ask for an extra $20/wk in rent, knowing that I am making an extra $520/year in profit at least. Whatever the outcome, the tenant cannot say you were deaf to their request.
Unless the aircon is fully-ducted, it adds negligible value so you need to recover it in its entirety plus a profit margin from rent. I keep my good tenants happy by being attentive to their requests, fixing things that break quickly, trying not to give them sticker shock at rent review time, and even by being a little flexible at times (if I trust them), not by giving them stuff for free.
There is no problem with amending a tenancy agreement by mutual consent at any time.
Having a split system aircon installed should cost you less than $2k. Depending on whether your place is near the ocean or not, it will last between 5 and 15 years and it will cost you maintenance over that time on a near-annual basis. As a rule of thumb, I calculate appliance-type investments as being worth $5/wk rent per $1k spent. If a tenant asks for them, I know they want it and just ask for double.
So in this case I would ask for an extra $20/wk in rent, knowing that I am making an extra $520/year in profit at least. Whatever the outcome, the tenant cannot say you were deaf to their request.
Unless the aircon is fully-ducted, it adds negligible value so you need to recover it in its entirety plus a profit margin from rent. I keep my good tenants happy by being attentive to their requests, fixing things that break quickly, trying not to give them sticker shock at rent review time, and even by being a little flexible at times (if I trust them), not by giving them stuff for free.
There is no problem with amending a tenancy agreement by mutual consent at any time.
If they don't want to pay $20, then why not try them on $10 extra per week ? x 52 = $$.
They need to clean the filters themselves like everyone else does otherwise it'll trigger a techie visit showing clogged filters which tenants must pay for, add clauses to the lease to cover it.
Suggest you give extra notice advising that this is not related to any other increases. Just so you can do the annual one, but maybe delay it an extra month or 2.
Good luck.
Cheers
crest133
They need to clean the filters themselves like everyone else does otherwise it'll trigger a techie visit showing clogged filters which tenants must pay for, add clauses to the lease to cover it.
Suggest you give extra notice advising that this is not related to any other increases. Just so you can do the annual one, but maybe delay it an extra month or 2.
Good luck.
Cheers
crest133
Another vote for the rent increase here. Although you will then have an aircon to maintain and replace if and when there are maintenance problems you will find that having an aircon will reward you with a higher rent and be more appealing to tenants in the future possibly reducing your vacancy period .
In VIC they are a HUGE selling point with tenants often moving due to a lack of cooling or opting to pay a higher rent for something with the aircon.
I think the benefits of keeping on a long term good tenant are also absolutely worth looking into the arrangement.
. In VIC they are a HUGE selling point with tenants often moving due to a lack of cooling or opting to pay a higher rent for something with the aircon.
I think the benefits of keeping on a long term good tenant are also absolutely worth looking into the arrangement
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I was home most of last week, and it was hot, but I was working on our back patio. There was some breeze, not that cool though. I was warm, but it didn't feel like anywhere near 40, so I googled to find this...
http://www.timeanddate.com/weather/australia/brisbane/historic
Doesn't seem to have hit 40 but did get close to 30 (unless I'm reading it wrongly).
We are about an hour outside of Brisbane, so I can only say what the thermometer said here.
I'm sure it's like most places...temperatures flucuate, depending upon the area you are in.
Absolutely. I wasn't trying to say you were wrong, but I know I hate the heat, and I know what 40 feels like
and it didn't feel like 40. Believe me, I would have been inside with the air-con set at "ice station zero".I know Ipswich seems to be often 5 degrees hotter and colder than Brisbane.
Something I would love is to live on the bay and get breezes all day, every day (or so it seems).
Are you house sitting nearby?
Monday it was much hotter in the west than here near the beach. I can guarantee that it was 44 degrees in the sun at 3:15 when I went to my car parked out in the open. It was about 38 in the shade. The official Brisbane temp is taken at the airport which is right next to the bay. Those figures, Wylie, cant possibly be correct (blaming the internet). Tuesday was a much more pleasant 33 degrees with a glorious breeze blowing.
I reckon Kathryn is used to 40 degree heat when she lives in Tennant Ck for three months of the year. Is that it? By the way, the owners expect you to use the air con while house-sitting. It's there, you might as well take advantage of it.
I reckon Kathryn is used to 40 degree heat when she lives in Tennant Ck for three months of the year. Is that it? By the way, the owners expect you to use the air con while house-sitting. It's there, you might as well take advantage of it.
We are in Cedar Vale, Qld atm.
I still find 40cel to be quite warm...when in Tennant ck, I do spend a lot of time in our a/c room, but those rooms are not insulated, and they want the windows and doors to be kept closed, to keep out the dust...so we keep it around 25cel.
The owner bought this house in Feb (this year) and said she has never used the a/c either, but she was told it worked. She told us we were welcome to use it.
Maybe it is because it is on stilts (short ones)..so there is air flow.
Lots of windows for cross breezes...and roof overhangs?
Rent was increased by $10 ($20 a bit too much considering market conditions in the area) but the additional increase for the upgrade was declined
Easy one if was asked to me, simply no.
Actually, most things would be a no.
I would consider allowing them to install a system professionally, but it would stay with the building if/when they left and it would be them to maintain it in good working order whilst there.
You have to think that all these things become maintenance issues, you will be required to fix them or replace them as they break or wear etc.
I suspect they think your a push over, so why not ask for whatever they fancy.
Actually, most things would be a no.
I would consider allowing them to install a system professionally, but it would stay with the building if/when they left and it would be them to maintain it in good working order whilst there.
You have to think that all these things become maintenance issues, you will be required to fix them or replace them as they break or wear etc.
I suspect they think your a push over, so why not ask for whatever they fancy.