When buying an investment property, many landlords are conscious not to over budget. Knowing property maintenance in inevitable, many often disregard outlaying the extra cost of installing an air conditioner.
Looking back upon Melbourne’s summer, it’s the perfect time to reflect on how extreme the heat can be. We had quite a hot spell earlier this year with nights holding onto some serious humidity.
Having an air conditioner in an investment property will ultimately provide various benefits:
- When sourcing a tenant, you’ll experience less days on the market. This prevents having a vacant property on your hands.
- You’ll be in a position to ask for a higher rent.
- A comfortable tenant with good sleeping patterns in the summer will often occupy your property longer, minimising vacancy periods and increasing your yield.
- You’ll have a greater chance finding a good quality tenant.
- An air conditioner can be a tax deduction and is possibly depreciable over time. As a result, please speak with your accountant before proceeding.
- When selling the property you’ll also find more demand from both owner occupiers and investors.
What type of air conditioner suits best?
A split system offering cooling and heating is a flexibility option. It is not as expensive as evaporative air conditioner or refrigerated cooling system, but it also provides more than one heating option. If you have a double storey property, it’s worthwhile installing a split system on both floors. Most properties have the bedrooms upstairs which takes on most of the heat in summer, while it can feel quite cold throughout winter. Downstairs is generally the living area where tenants spend a lot of time. During summer it may feel cooler, but it certainly feels colder during the winter season.
Installing a split system outside the summer season may be a good time to buy. Being outside peak season, you may be in a position to bargain a great deal!
In summary an air conditioner in an investment property will provide multiple benefits. When owning an investment property take note of what you would look for. This is often a great way to understand what is important and what is not.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
April 2019
