I rented my IP at the very top of the rental range for similar properties. The extra money has paid for some requests such as fly screens.
I've never experienced that. The extra rent - if any - I normally get for my houses pushes the gross yield from say 3.3% up to say 3.4 or 3.5%. When paying outgoings out of that, brings the nett yield down to say 2.1 or 2.2%. As compared to the 7.5% interest rate payable on funds, there is definitely no "extra money" left over for indulging Tenant's post Lease signing whims. Even if I tripled my rents, there still wouldn't be excess funds.
I'm not about to pander to their every whim; but small comfort items are easily installed, add value to the home, and lead to a good first impression / relationship.
I've never experienced any of those either. A 4x2 house on a standard quarter acre block of land in a certain area is worth what it is worth. I've never had a valuation come in higher because of small comfort items. Indeed, every residential valuation I've ever had done (14 residential valuations for first security purposes all up over the years), not once has the Licensed valuer ever stepped out of the car. They are able to assess 99% of the property's market value standing on the kerb. In the posher areas where the underlying dirt is more valuable, this is even moreso the case. Little comfort items for the tenant that cost the Landlord are not part of that value equation.
In terms of impressions and relationships - whoa, that's way too touchy feely for me. Relying on what is stated in the governing Act and was has been executed on the Lease is where it boils down to. Most Tenants push the Landlord for everything they can get (seems to be an Aussie tradition) and so despite good feelings and intentions, eventually the cashflow concerns take over and you arrive back at both the legislation and the exact Lease wording and underlying intent of that wording.
My attitude is that tenants inevitably find a few issues when them move in and the rent I charge takes this into account (in advance).
I've never had that with my houses. The rent never, not once, takes into account the extra cashflow burdens asked for.
You must have some very special houses Dis, with some extremely wealthy tenants paying you generously to be able to absorb this impost out of the cashflow generated from your rents. May I ask what gross and nett yield you are receiving. It must be way up there in the teens for you to have excess cash. Good luck to you if it is.
Maybe it comes down to the fact that you have a good attitude towards your cashflow and Tenants and I have a very poor pessimistic attitude to both. Knowing my shortcomings / limitations though, I changed tact and now don't have to incur expenses like meg is asking about. I was simply the wrong horse running the wrong course. Perhaps this course suits you...which is great.
