Tenant wants to install security system

[Timo]

Hi All
Our tenant has just requested, through our Property Manager, permission to install a security system at her expense.
On the face of it this seems a good idea but I suspect there may be issues around this and would be interested in any advise/cautions regarding this that any of you may be able to share. E.g.

• As this is likely to be a fixed unit it would technically be a chattel. Would this therefore become our responsibility for insurance purposes?
• What if the tenant was to move on. Should they be required to remove the system or would we have the option to purchase the unit at a depreciated value and should such an agreement be in writing from the outset?
• Would the tenant be obliged to provide us (the landlord) and the Property Managers with the access code or just the Property Managers?

Any advice our personal experiences would be greatly appreciated
Regards Timo

[RentMaster]

One suggestion - install the alarm system yourself and increase the rent by $10 a week. When the tenant leaves you keep the alarm, which can be good when it comes to finding new tenants who might pay extra for an alarmed house.

[tricky]

Hi Timo,
It's your house - you control everything in it.
So, if the tenant will pay for the security system, then you get it installed (this way you ensure you get a good quality unit) and you have the master code and give the tenant a secondary access code.
When the tenant leaves - the security system stays in the house.
Good asset for you to keep.
You set the rules.
Never let the tenant organise modifications to your house - everything must be organised by you. That way you know the quality of the work.

[Propoholic]

One suggestion - install the alarm system yourself and increase the rent by $10 a week.

I've put a few in 2 brm units, a good system is about $1100.00 inc GST. Borrowing cost on $1100.00 @ 8% int only is $1.69 per week, getting an additional $5.00 - $10.00 per week rent is good business!

[xris]

Hello timo,

I agree with the above, especially the notion of doing it yourself.

I once had the same request and allowed the tenants to put one in. When they left it proved to be an unwanted nuisance and I had to pay for a tradesman to come out and disconect it to stop it keeping on beeping. All the other issues about losing direct control of the unit are valid. In future I would get the tenants to gift me the cost of installation, do it myself and when the next tenants move in charge an extra $5 per week.

xris

[whitt]

In future I would get the tenants to gift me the cost of installation, do it myself and when the next tenants move in charge an extra $5 per week.

xris

Good idea Xris

[Cassandra]

Yes- vey important that you & your PM have a Master code - tenants can then change the code at thier whim without impeding your rightful access for inspections & repairs. The tenants that asked this of us were exactly the type of tenants who tried to thwart my inspections & were later found to be in breach of our tenancy agreement in damaging the property, having unathourised pets & converting the garden tin shed to a sleepout for additional residents. We did not permit them to install an alarm

[xris]

Yes- vey important that you & your PM have a Master code - tenants can then change the code at thier whim without impeding your rightful access for inspections & repairs. The tenants that asked this of us were exactly the type of tenants who tried to thwart my inspections & were later found to be in breach of our tenancy agreement in damaging the property, having unathourised pets & converting the garden tin shed to a sleepout for additional residents. We did not permit them to install an alarm

On this topic, tenants can be fined for not providing full access after notice has been given. This is a good example of this.

Years ago I could not get into one room during an inspection because one tenant had put a padlock on her bedroom door to stop the others getting in while she was at work. She was not there at the time so I could not view the room. there were later problems with that tenancy and I ended up at the TT. What I did not do and now wish I had, was to claim for failing to allow access. I think a lot of landlords overlook this subject.

xris

[Gerrard]

One suggestion - install the alarm system yourself and increase the rent by $10 a week.

I've always wondered about this approach. Sure you can justify the increase for that tenant, but what about when they move on after six months and you need to get another tenant. Can you still achieve that extra $10 a week? If the whole market has moved can you still be $10 above the market?

Gerrard

[Propoholic]

I've always wondered about this approach. Sure you can justify the increase for that tenant, but what about when they move on after six months and you need to get another tenant. Can you still achieve that extra $10 a week? If the whole market has moved can you still be $10 above the market?

Gerrard

I would say yes as a security system is currently a sought after feature that is still not available on a majority of properties. A premium wouldnt be available if all 3 brm houses came with security systems.

[RentMaster]

I've always wondered about this approach. Sure you can justify the increase for that tenant, but what about when they move on after six months and you need to get another tenant. Can you still achieve that extra $10 a week? If the whole market has moved can you still be $10 above the market?

Gerrard

I know what you are saying Gerrard, and I sort of agree. It might depend on where the property is located and the current rent on the property. I am not sure if many tenants would pay extra for the alarm, although it might sway their decision when they are looking at similar properties in a similar price bracket.

One of my properties has an alarm, and I know my tenants are not using it. Strange.

[AppleT]

I've had the same situation and installed alarms myself - the tenants were more than happy to pay extra $10/wk to cover the cost of having it as it was sold as a desirable benefit for them. I didn't really need to sell the idea as they wanted it.

Another property also pays the same rent with the alarm and don't use it - but I guess it's their choice.

Debs

[McDuck]

My opinion. let them do it and ask for a separate code for yourself in case of an emergency… and a demonstration of how it works.

It's good for a tenant to feel they are in control of their environment.

Ask them about the possibility of purchasing it from them should they choose to shift.

This will make them feel like looking after the property more and not like you are latching on to their good idea and stealing it.

That’s the dynamic in a relationship of unequal power.

[Bodmin]

Be careful with the accounting

We paid for the installation but the monitoring company could not seperate us from the tenants who were paying directly.

This caused all sorts of hassles until the GM got involved. All is now sorted though