Air con - ROI

Discussion in 'Property Management' started by Jaacksn, 24th May, 2022.

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  1. Jaacksn

    Jaacksn Well-Known Member

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    Hi all

    I am currently receiving $450 a week in rent

    Property manager believes that rental amt in the current market is $480

    Tenant has previously asked (about 6 months ago) for an air con

    I am thinking of lifting rent by $30 but not sure of whether I also get an air con. Is it worth it?

    Has anyone negotiated lets say $10 extra rent and got an air con as part of the deal?

    Note property is in Brisbane
     
  2. wylie

    wylie Moderator Staff Member

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    We have done this. Generally we've done it at tenant changeover, so the sitting tenant isn't paying more, but I think it is fair enough to ask for more ($10-15 more would be easy to get I think).

    It will cost you to install it (how much will depend on size, cost of the copper run etc).

    Have you looked to see what similar houses are renting for, and if they have air-con. What houses similar are renting for without?

    Generally, in Brisbane, you will find it rents more easily with air-con.
     
  3. willair

    willair Well-Known Member Premium Member

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    Maybe work out how many A-C units you need first ..
    If you need several units then it may not be a winner for you only the tenants..
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    It may rent a week quicker which adds to the bottom line.
     
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  5. MB18

    MB18 Well-Known Member

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    It depends where the property is as to whether its an expectation or a luxury.

    If its the former then the 'better' tenants will look elsewhere and you will be left with the results.
    Ask yourself 'would I reside here with/ without aircon'?
     
  6. Tom Rivera

    Tom Rivera Property Manager Business Member

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    I love this! The tenant is over the moon about the extra feature- not just that they have A/C now but they'll feel like they have an Agent/Landlord who listen and value them, which makes them more likely overall to take care of things and cooperate where necessary. You can ask maximum rent increase without them getting miffed and you've just improved your house for the future.
     
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  7. Jaacksn

    Jaacksn Well-Known Member

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    How do I work out how many units I would need?
     
  8. Heinz57

    Heinz57 Well-Known Member

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    One in the main bed and one in the living room should do it. I added a unit in the bedroom recently and the rent increased $50, rising rental market helped though.
     
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  9. Jaacksn

    Jaacksn Well-Known Member

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    do you have fans in all bedrooms?
    I feel like as I have fans in bedrooms the AC in bedroom is unnecessary?
     
  10. willair

    willair Well-Known Member Premium Member

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    Just draw a rough floor plan of the area's you require to run the A-C units and go into any site that sells split systems..
    Try and go for back to back set-ups-less pipework-easy install times depending on the power boards set -up and have all that factored in the quote..
     
  11. Heinz57

    Heinz57 Well-Known Member

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    Air con in Brisbane is needed, the fans just move the humid air around
     
  12. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Just put a 7kW unit in the living area- will cool the living room easily and if the tenants are absolutely dying then can pump it all the way through an average size house (though it won't be kind to the power bill).