Hi Everyone,
Just need your advice in relation to one of our units that we acquired in April of this year. The unit is a older style unit buy by the water.
The lady that moved in seemed very nice, however the first week she was in there, we had her on the phone asking for new glass (I think it was) that apparently had a small crack in it and she was concerned that she had a small baby and someone would break int). We had the glass replaced in the window. Then she wanted security screens in the windows and the door. We did this. Then she needed a handy man around there to fix various items in the unit. We obliged. There were a few plumbing problems, a plumber was around their immediately on more than a few occasions (I don’t have a problem with the plumber}.
Her lease is up and she says she is moving out to have more space for her baby. The agent finds another tenant to move in the day she moves out (in a couple of weeks time), she rings and changes her mind because her circumstances have changed. She wants to sign on for another 6 months however I think she will definately move after this 6 months.
She has now rang me asking that we air-condition the unit as she has a baby and it is very hot.
What are your thoughts?
IMHO I’d up the rent to cover putting in an air-conditioner [smiling]
I’d think that the unit would probably rent out for a bit more as you have improved Security via the screens etc..the other stuff may just be put down to maintainence (what did the plumber say about the condition of the plumbing in the unit now?)
Do you think the demands were unreasonable, or are you happy that these items that may have needed fixing are fixed?
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi Shelley
Ahhhh, the advantage of a good property manager. It’s so much easier to say no via your PM and your tenant probably won’t have your phone number.
This person has been quite demanding and recently downright unreliable. My opinion. I would give this tenant notice to vacate.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
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Have you tried to negotiate a reasonable increase in rent in return for an air conditioner?
She shouldn’t be able to keep demanding improvements (I’m not talking about necessary repairs of course) without expecting an increase in rent.
Celivia
hi Shelley D.
what the tennant like, a good tennant is worth an air conditioner but get more then a 6 month lease.
reading your post is this in your opinion a good tennant in mine no its not.
my tennant never rings and pays on time then the air con for my tennant wouldn’t be a problem.
whats the vacancy rate for the area if 1% change tennanthere to help
Hi Shelley D,
I had exactly the same situation 12 months ago, tenant constantly requesting maintnance on trivial issues, for some things that any bloke with a screw driver and hammer could fix themselves. I was glad to see the back of them, even though they paid on time or in advance.
Got a new tenant, then the aircon went on the blink. D’oh. She sometimes play late but always catches up within a fortnight, and has never asked for petty repairs.
You can afford to take pity on a bad tenant, or one that costs you unnecessary maintenance expenses.
Mal
Getting out of your comfort zone, can help you become comfortable
I’m surprised she hasn’t asked you to her in at night and turn the light off.
Definitly need to put up the rent and get 12 month lease or say goodbye. All transactions need to be win win. I do something for you you do something for me. You put in aircon, they pay more rent. Much easier to lease out a property with aircon/heating and get better rent.
Good luckyou’d probably find that once you come back with, “certainly, I’d be happy to put in an air cond, but to cover my costs, the rent would have to go up by $10 per week” she might say that she dosent want it!
Since everything has to do with her baby, ask if the baby is worth an extra $10 per week!
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phone 0412 437 5821. She’s moving out to get more room for the baby…flip.
2. Her circumstances have changed….double flip.
3. Wants an A/C for the baby…double flip with a half turn pike.Ummm, what happened – did she get rid of the baby for a while and now the baby is back again ??
This is exactly why we don’t invest in this type of prop. Being forced to swim through strangers personal ‘comings and goings’, with your financial wellbeing hingeing on their personal decisions which you having zip control over.
We found going around and making whinging ressy tenants a nice cup of cocoa and tucking them in at night calmed them down somewhat.
Shelley, is your investment looking after you, or are you looking after your investment. Did you make any money during her 6 month lease ??
I’d put the A/C in, ask her to sign a 3 year lease at a 7% nett rental return, with regular escalation clauses. Palm all property outgoings off on her as well. You know what the answer is going to be….so do we….hence why we leave this carry on to Landlords who have spare money and time to deal with it all.
Shelley
The most important thing is not to let your emotions over-run your investment property. It is important to have a HEART but property investment is a business (that’s more important). Give yourself time to go through the numbers and see whether this deal is losing money or making money.
Work out why you are investing in properties, then take out appropriate actions (not tomorrow, but TODAY). If still unsure, try the following:
* hand out $10/week to tenant (starting this week) and soon after, the correct answer will come to you.
Good Luck with your journey of property investments.
Cheers
JohnDreaming about financial freedom is all about taking some action TODAY. I am building my own successfully PART TIME business whilst still working in a Bank. If you want to know more, PM or email ME.
Thank you everyone. I have very much appreciated your comments and you are all so right. Big lesson for me in general to not get emotionally involved.
I have told the agent to deal with it. Happy to put the air-con in if she signs at least a 12 month lease and ups the rent. I know what the answer will be.
We all learn every time something new pops up don’t we.
Thanks again.
So … ShelleyD,
wot happened?[blink]
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonWell, well, well, I said I would be happy to put the air-con in but would have to up the rent and I would need her to sign for a longer lease to cover the expense. She said, oh no, we are moving out in 6 months as we need more room for the baby and can’t afford any more rent!!!!! Isn’t that was everybody expected.
I had the opposite problem with my tennant asking me not to put new carpet in or not to paint the place as he is happy with bringing his friends back and having a jam session (as he plays in a popular band) . He doesnt want the burden of having to tread carefully, suits me as i brought the place with the idea of doing a total makeover. However now i will just wait until he moves out . Pays on time and have only had one phone call from him wanting to sign for another years lease . Unfortunetly i have had your problem with other ips but thats another story .
regards
ShaunIf you want the rainbow youve got to put up with the rain!
I would personally, only fix the things that are legally required, plumbing dangerouse things etc …. You hve been totally lovely doing all these little run around things .. are you actually making money on this unit?? Seems the tenant is a total cow. You have been a good land lord from everything you have mentioned!!
If she wants airconditioning let her buy an airconditioner herself, the ones you plug in the wall if shes so concerned about her baby.
She knew the unit didnt have the Hilton accessories when she moved in, so she shouldnt be so unreasonable now. Tell her that is she needs all these extras, you wont pay for them, if she dosnt like it, you might actually be better off with a new tenant ..?
Psychiatrist !
Ms ShellyD,
correct me if I’m wrong, but:Her lease is up and she says she is moving out to have more space for her baby. The agent finds another tenant to move in the day she moves out (in a couple of weeks time), she rings and changes her mind because her circumstances have changed. She wants to sign on for another 6 months however I think she will definately move after this 6 months.There is some-one you forgot! the new pospective tennant! What about interviewing them to see if they are more suitable – perhaps they’d like the idea of a12/24/36 month lease with new A/C? If so then I would seriously consider NOT re-renting out to this ‘Challenged’ mother Tennant. You do have the option to say: ” .. Sorry Ms XYZ, love ya but you gotto go! I got some-one that wants the place with A/C ..”. The A/C would also increase the value of your IP and isn’t that part of the formulae!
Just a thought.[cigar]
Cheers
C@34Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.
– Thomas EdisonTenant needs to be reminded that the property was a WYSIWYG , and that the rent is attached to the goalposts too, move one & you move the other.
Improve the property, improve the rent.
Want a/cond, sure, only an extra $20 pw. What else would you like ?
good luck
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
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