Tips to keep tenants happy and add value to your property

We've heard about adding value to an investment property, but have you ever considered a cool and cheap way to do it? Air conditioning is relatively cheap and will keep the tenants happy. It will also add a bit of value to your investment property.

Air conditioning installer Jeff Cox says the first thing to consider is whether or not you want to put it in the lounge or bedroom.

"Work out how many square metres the room is," he says.

"You need to know whether it's back to back on the wall, and where the circuit will go."

LJ Hooker Toowong business development manager Mark Sharrock says air conditioning isn't only important, it's almost becoming a pre-requisite for tenants.

"It's one of the first things they're asking for," he says.

"A lot of the next generation renters are looking to rent something as good, if not better, than their own family home they grew up in. They want all the mod cons, Foxtel, air conditioning, everything."

He believes air conditioning also allows landlords to increase the rent by $10 to $15 each week.

"The only downside is if it's a new unit, it's not a tax deduction. You can't get tax depreciation either."

Another downside is that if it costs $2000 to buy and install, the value of the unit or investment might only increase by $3000. This means the gain isn't great.

"My suggestion is to put one in and increase the rent on the investment property by $10. That means you recover the costs anyway after a couple of years."

"Tenants seem to rate air conditioning slightly higher than the general condition of a property. I've seen many people apply for homes without air conditioning and ask for it to be installed."

Sharrock's top tips for air conditioning include:

  • Buy a larger unit and put it close to the hallway. This will cool the living room and take the edge off the bedrooms.
  • Put a fan in the living room and aim it down the hallway. Then, slightly open the bedroom and kitchen windows. This creates a breeze, which will help the cooler air move into the bedrooms.
  • Keep the temperature at 24 degrees, which saves electricity but still makes the room comfortable.
  • Clean the filter regularly, because a clean filter means a cooler room.