End of Financial Year Suggestion for Property Investors: Install Air Conditioning
EOFY Air Con Repairs and Maintenance
Air Conditioning in Rental Properties – Crunching the Numbers.
While prices will always fluctuate due to supply and are subject to change without notice, at the time of writing, (June 2017), Acer services can fully install a top brand reverse cycle air conditioner in your rental property’s lounge room for $1899(including GST) and another in a bedroom for $1200(incl. GST)…dependent on the size of the rooms of course.
Based on the universal appeal of air conditioning (see above), it’s perfectly conceivable that you could negotiate an extra $30 per week rental income for your house or unit.
This means that you could recoup the cost of the air con in just over two years, and after that you can sit back and pocket over $1500 extra rent in the following years, based on today’s rent (more if you increase the rent down the track).
And that doesn’t even take into account the tax benefits mentioned earlier, such as depreciation.
On top of that, there are the unseen benefits of having an air-conditioned rental property.
Increased demand equates to a larger pool of prospective tenants to choose from.
Having more tenants means you can “cherry pick” the best tenants (the key to running a good investment property)
If the tenants are happy, it stands to reason that they will look after the property better.
Your property will be rented for a longer term, thus minimising costly vacancies.
To sum up, installing or updating air conditioning in your rental property makes a lot of good business sense on quite a few levels, be it a tax deduction, or as a lure to attract more (and more desirable) long term tenants.
However, before you contact Acer Services – as we strongly suggest you do before the end of the financial year – definitely have a talk to your tax agent.
The tax laws are continually changing, so they may be able to give you more up-to-date information.
NB. We are exceptionally good air conditioning suppliers and installers. We are not accountants. The financial information we have supplied in this article is true and correct to the best of our knowledge, however you should discuss the facts with your accountant or tax agent to see if it is right for your individual situation.
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