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Air conditioning in an investment property?

With winter approaching, I am going to talk air conditioning and answer the often asked question on whether an investor should add air conditioning into their residential investment property.

Put very simply – YES. If your goal is to have a high yielding long term investment property then again YES.

With extreme temperature days happening more often, as a bare minimum you must have air-conditioning in the living area. Ideally, in the living room and the bedrooms which are going to be occupied. This may be dependent on your floor-plan too. If your property is a two story the minimum is one upstairs and one downstairs

The key benefits in having air-conditioning in your investment property are:

  1. You’ll keep your tenants comfortable through extreme temperature days. Having the choice to use the air conditioning or not, your tenants will generally stay longer, minimising vacancy periods and increasing your yield.
  2. Air-conditioning could be a tax deduction and is possibly depreciable over time. Check this out with a depreciation professional but you will be pleasantly surprised
  3. If you choose a split system, which does both cooling and heating, not only are you providing choice, flexibility and comfort for very little extra cost. This also ensures there is more than one heating option available. 

So, please don’t delay. Should you look at installation outside the summer peak season you may also find you get a good deal!

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