keeping good tenants happy doesn't cost much.

i recently learned that two of my tenants were having to sleep on the verandas of their units because of the hot weather during some of the summer nights.
I asked them if they wanted to have me instal some window air conditioners if they would agree to a rent rise? We worked out a deal where they would pay an increase and have an 18 month lease.
I bought two A/C units on a 2 year interest free deal and I'm installing them myself. Their increase in rent will cover the monthly repayments.
So they are happy. they are cool in the summer and warm in the winter. Also saving a bit on other electric heaters they won't need now . I'm happy as I have an increase in rent to show the upcoming valuation and two happy tenants.

 

Window AC units - Plug and play AC units are cheap for a reason. Worst of the lot are the in window portable units. 100% useless. Next worse are the in wall types in a window. Often low KH (1.5kw) units that barely do that room. Wait until the tenants complain - you just increased their expectations. They are close to useless for heating or cooling and the noise can be so bad you cant sleep in it while its on. IMO I would never put less than a split system into any property and it requires licensed instal.

Are the window ACs allowed by strata ? Often prohibited as they can fall out and kill someone and lack drainage. Typically strata minimums are splits and sometimes a specific model and location is specified.

Intention may be right but maybe a shortcut.

 

You will need strata approval as they protrude outside the building. Most need alteration to the glass in the window to seal, also a strata issue.

Noise may be a problem for adjacent units.

And yes, strata can force you to remove them. We owned a unit in a complex where an owner installed a split system without approval. It impacted on other units and he was forced to remove it.
Marg

 

Maintenance issues are the number one reason why tenants do not renew leases. Most landlords do not want to do simple maintenance until it becomes urgent or they get a tribunal order to carry it out. Effective or not, it shows care so good on you. X

 

@Paul@PFI
What would u do if there was no suitable place/wall to install a split system?

Curious cause I'm kinda facing that, ducted is pricey

 

There's no strata approval needed only two units on the block and we"re all in agreement. The units I bought are 3.9 kW . I have one at my work and it is strong, quiet and reliable. I'm replacing the window with strong Perspex cut to size and taking out the sliding window. I'll do it right and it will look good.

 

I think you are on the right track.

If you have a quality product and you show care for your clients then you will be better off financially.

I am always amazed at how disrespectful, and cheap, some landlords are. They become a self fulfilling prophecy - tenants are like dirt because the landlord gives no respect.

It will not always work out but I am sure there are quality tenants who say the same thing in reverse.

 

Not allowing basic repairs is what disgruntles tenants, no idea why anyone would skimp on this.

Firstly they're paying your way, and keeping one longterm with minimal turnover is the best way to maximise your return.

Secondly its a legal obligation. Adding stuff like the OP mentions is obviously not an obligation, but helps with the current tenants and any future tenants too.

 

I self manage my property and when the AC broke down i got a mitsubishi unit as it has 5 year parts and labour warranty, and i clean the filters once a year to make sure it runs good happy tenent happy life

 

I look after all my tenants and they pay me back in spades! We have a mutual respect. I know some people have different views on this but I have great long term tenants at one location and our arrangement works both ways. I do except it's a business but you don't have to be hard nose about it to make it work.

 

Split systems are designed so that the internal and external units dont have to be back to back and avoid ducts which are complex to retrofit. There are some new vertical units that never existed and dual head units. An AC specialist and not Bunnings would be the idea.

 

I agree with the positive comments but what gets me is the duplex unit next door to one of mine (ex ppor) gets bugger all done to it, just what's required, has no robes, fans, poor paint, flooring, curtains, basic fly screen doors, parking for only one car, crap yard etc. pretty ordinary.

Mine has robes, ceiling fans, fresh paint, near new carpet, timber blinds, roller shutters, Crimsafe type security doors, secure parking for 5 cars, tidy low maint yard.

Just had it assessed by same Pm that looks after next door, they get $240, suggested listing price for mine, $260.

Assuming I get that rather than negotiated $250pw, it's only an extra $1,040pa, which goes pretty quick if I have issues with the things they don't have to worry about.

 

One of my tenants to whom I sent a set of movie tickets for her whole family and a card last Christmas actually complained to my PM about saying it would be a better present if I gave her a weeks free rent for Christmas. Same tenant who has her maintenance done within 48 hours on every report (as with all my tenants) and keeps saying no to a air conditioner because her portable one is "just fine" and she thinks she'll use more electricity.

Great to see you're treating your tenants well! A very important part of the investment journey.

 

Perhaps a rent increase?

 

Ungrateful toad!

She does realise that you are not required to give her anything at all, right?

 

My last landlord had the same attitude and for us as tenants it was a godsend.

Anything we needed to get fixed was done instantly, and we were respected and treated with care.

We returned the favour and looked after the house and landlord.

At the time we could have got cheaper rent, but for us it was worth paying a little extra for the peace of mind knowing that our home was essentially part of a nice team.

That being said....I sometimes wonder if the landlord was too nice? We're good people and did the right thing, but I know a lot of other people would have taken advantage of the situation...it is a fine balance I guess.

 

What I have learnt in life & Business is that all too often if people perceive you as "too nice" or "too caring", you get taken advantage of. As property investing is a Business, I treat it as such. I fix things that need repairing promptly, communicate via the various PM's, and have well kept properties kept at market rates, but I never get personal with the tenants and never give gifts. I also never upgrade properties to suit tenants whims. If there is an upgrade done, it is at our discretion.

I commend tenants like you, but you are right, a 'nice' landlord will often be the ones that have silly requests made of them.

My inlaws are 'nice' landlords. They bought a property & leased it out under market rates because "I don't want to make it hard on the tenants". They didn't put the rents up because "The tenants don't earn as much as us, so they can't afford it". Then the bathroom needed upgrading, so instead of fixing the issues they reduced the rent even further to compensate the tenant. When the tenant left, they were going to renovate the place, but then decided one of their children could rent if off them in the current condition & help fix the place. Child has been there for 12 months now paying $100pw (three bed house in western sydney) because he can't afford anything more than this, while he comes home & uses the bank of Mum & Dad. No work has been done on the house.

 

You'd think so but I was absolutely speechless when I heard that so I'm not sure how or what she thinks!

 

I actually don't do this as a matter of routine. It's a business for me and it very much depends on market conditions, reports back to me from PMs and a few other factors. I see it more like when a business provides certain rewards to clients for various reasons. Last year I only sent gifts to 3 sets of tenants out of all my properties and the year before I don't think I sent anything.

You're 100% right though. Treat is like a business and you'll never go wrong.