My Granny flat tenant in western Sydney pays $250 a week, and has just re-signed the lease for another 12 months. As they've been good tenants I didn't increase the rent when re-signing the contract. I am just cash-flow neutral on this property when I combine the cash-flow with the main residence. My PM calls me yesterday and says "The GF tenant wants AC, are you happy to install one". I said, "I can if you will increase the rent to $260". The PM goes, "can't do that, the contract says rent says at $250 for next 11 months". My heart goes out to the tenant, who had to survive the heat wave in Sydney last week without AC. But from a business point of view, it makes no sense. Any idea how much it will cost me to put an AC in a GF in the Penrith area? What would you do?