A/C broke, tenants want to be compensated, need advice
Investor · Austin, TX · Member since 2022 · 50 posts · 45 votes
A/C broke, tenants want to be compensated, need advice
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Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votesIt's Houston in June with no A/C. I'm not sure that there is a worse city in America to live in without A/C. You have to do the right thing and offer some sort of compensation. I may be in the minority here, but owning and managing property is also customer service. You have to make sure that your tenants feel heard and taken care of in situations like these.
I'd honestly consider no A/C in Houston in the summer at the same level as no water or power. I'd rather have no water for a week than no A/C for a week...perhaps being a bit dramatic, but it's an absolute essential. It's not your fault that it happened, but you have to have a band aid (portable A/C, window units, etc.) or permanent solution in place within 24 hours. Telling your tenants that it's not your fault and that the technician keeps postponing is not good enough.
30 Replies
- Member since 2023 · 88 posts · 62 votes3y
Check out this thread ... https://www.biggerpockets.com/...
- 3yTravis TimmonsPro MemberRental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
It's Houston in June with no A/C. I'm not sure that there is a worse city in America to live in without A/C. You have to do the right thing and offer some sort of compensation. I may be in the minority here, but owning and managing property is also customer service. You have to make sure that your tenants feel heard and taken care of in situations like these.
I'd honestly consider no A/C in Houston in the summer at the same level as no water or power. I'd rather have no water for a week than no A/C for a week...perhaps being a bit dramatic, but it's an absolute essential. It's not your fault that it happened, but you have to have a band aid (portable A/C, window units, etc.) or permanent solution in place within 24 hours. Telling your tenants that it's not your fault and that the technician keeps postponing is not good enough.
- Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes3y
Oh yes, I remember that thread! Alejandro, lesson learned the hard way. You should have brought over some window units. But next time.
Do you know how much one night stay cost? As long as it was a Holiday Inn or something on that line and not a Marriott Marquis type hotel. I would ask them for a copy of the hotel receipt and pay for the one night. If they cannot produce a receipt for the hotel, I would give them each $50 or $75 off next months rent.
I just looked at the temperature for your area, the tenants have a legitimate complaint. Good luck.
- 3yMelanie ThomasBusiness MemberReal Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votes
IMO as long as you were taking reasonable action to get it repaired, you are good. You weren't sitting around in the AC doing nothing watching them sweat. Heck, as a home owner my own AC went out and I had to wait a week for a part. Did my mortgage company cut me a break on my bill? Hell no. I have a really great form with Q&A I send to my tenants addressing questions about hotel reimbursement, rent decreases etc. Happy to share, message me. Good luck & happy investing!
RentWerx Property Management4.73300 Reviews - 3yTravis TimmonsPro MemberRental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
@Melanie Thomas
"Heck, as a home owner my own AC went out and I had to wait a week for a part. Did my mortgage company cut me a break on my bill? Hell no."
Did you seriously just compare a rent by the room tenant to fixing the AC in the house that you own and occupy? That's not the same thing and you know it. - 3yV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votes
Quote from @Melanie Thomas:
IMO as long as you were taking reasonable action to get it repaired, you are good. You weren't sitting around in the AC doing nothing watching them sweat. Heck, as a home owner my own AC went out and I had to wait a week for a part. Did my mortgage company cut me a break on my bill? Hell no. I have a really great form with Q&A I send to my tenants addressing questions about hotel reimbursement, rent decreases etc. Happy to share, message me. Good luck & happy investing!
That's completely different. Not sure how that's relatable.
You need to compensate the tenant. Don't get cute, and damage the relationship if it's good or harm your business. 7 days without AC in Texas is brutal.
- Real Estate Agent · Roswell, GA · Member since 2023 · 19 posts · 13 votes3y
I was in this situation a few years ago; it was the hottest 4th of July weekend (Atlanta). Getting the right technician out there took about 7-8 days. My tenants were pissed and I don't blame them. In hindsight, I should've provided them with a portable ac. What I ended up doing was completely waving the days without heat from the rent. They were completely satisfied with that.
I know better now, which is to provide probable AC right away! That will give you time to find the right technician. Win-Win.
- Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes3y
Stuff breaks all the time. As a landlord our responsibility is to fix it in a reasonable timeframe. If it's not being fixed in a reasonable timeframe the tenant has the option to provide notice that they're oging to fix it themselves and deduct from rent, or be let out of their lease due to LL violating their duty
It's a monumentally bad idea to start compensating hotel rooms when there is a maintenance issue. Next thing you know they'll try to do that for everything. 10 minutes ago my operations manager FW me an email from a tenant that wanted us to pay for a hotel because she saw a rat in the unit.
And sorry but the comparison to a home owner is accurate. Because the point is: Stuff happens. I've had my AC go out. I've had hot water heaters in my house die. And like with my rental properties, I try to fix as quick as possible.
- San Diego, CA · Member since 2019 · 14 posts · 17 votes3y
Since you don't have a time machine, you can't do what you should have done, which is to install window units in the bedrooms at the 24 hours mark. At this point, you have cranky tenants so it's going to be hard.
Pay for the hotel (ask for receipt) and/or reduce their rent next month.
I'm not an Air Conditioner wimp (I live in San Diego and for the first two years I did not offer AC in my Airbnb guest suite), but a week (and counting - it's still not fixed as the time of your post) in June in Texas? You're lucky they haven't drawn and quartered you.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes3y
@Alejandro B Yoon
If state law does not make AC mandatory in our leases we list it as an amenity and is not a necessity
Typically heat is required for habitability but air conditioning is not.
7e investments53 Reviews - Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes3y
You need a real AC company in your tool belt. My AC guys have my problems fixed within 24 hours.
- Member since 2023 · 216 posts · 133 votes3y
Go buy window units for however many bedrooms you have and keep them stored away for next time, because there will be a next time and then you'll be prepared. You don't need to offer every sqft of the building to be AC but at least give the tenants the ability to escape to a bedroom where it is AC, it is a small price to pay to keep your tenants happy. They will be thrilled if next time it goes out you or your handyman show up and toss a window unit in each bedroom.
- Member since 2023 · 122 posts · 68 votes3y
My thoughts on how I've handled this in the past is to never pay tenants. Especially for property breakdowns. The mechanic shop doesn't give you any money if it takes them a few days longer so neither do I. It's our responsibility, to have the problem repaired in a reasonable time. 7 days is a little long so that definitely needs to be tightened up but for a person living in a home even if they own it and the AC breakdown will have to stay with a friend or family member and wait for a tech to diagnose, then repair.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes3yAloha,
Quote from @Cody L.:
Stuff breaks all the time. As a landlord our responsibility is to fix it in a reasonable timeframe. If it's not being fixed in a reasonable timeframe the tenant has the option to provide notice that they're oging to fix it themselves and deduct from rent, or be let out of their lease due to LL violating their duty
And sorry but the comparison to a home owner is accurate. Because the point is: Stuff happens. I've had my AC go out. I've had hot water heaters in my house die. And like with my rental properties, I try to fix as quick as possible.
Check local LL/Tenant Laws, they typically specify a time frame to initiate and complete repairs for various type of issues. That, to me as a PM, would be the definition of "reasonable". Depending on specifics, I may recommend to our Client to allow for some credit or reimbursement, but if I just gave away their money every time a Tenant was inconvenienced, I would be out of work.
Also, it is simply not realistic to expect small landlords with only one or two properties to have any depth chart when it comes to vendors. Contractors are going to cherry pick when everyone needs AC work in the middle of a heat wave. Just like a typical home owner, they will need to wait out the frenzy. If you harass the vendor with calls every day, you will never see them. - 3yJohn MorganPro MemberRental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
@Alejandro B Yoon
I have 3 HVAC guys I use. Whoever can fix it today gets the job. I don’t mess around with a broken AC. However, I have had to wait for a part one time. I dropped off a couple window units to my tenants and also offered a hotel room if it got too uncomfortable for them. They declined and survived with just two window units for a few days. I’d give them 25% off rent for next month. You’ll look like a hero and a landlord who cares. Most don’t. Maybe they’ll stay with you for many years. Take care of your tenants and they’ll take care of paying off your mortgage. It’s a win for both parties. Don’t be cheap in this biz.
- 3yJosh YoungPro MemberRental Property Investor / REALTOR® / Property Manager · Gilbert, AZ · Member since 2023 · 384 posts · 421 votes
@Alejandro B Yoon it's very important that you read and understand your state's Landlord Tenant Laws, here is a link that will provide your answer https://statutes.capitol.texas... if you scroll down a little you will see that it appears you were within your seven days, plus it looks like you could have had a fifteen day extension for having to order the part, although that extension would require some paperwork. I don't see anything anywhere about requiring a landlord to pay for a hotel. You should also research to see if you have any local laws that could affect you. I would apologize for the delay in having to order the part and let them know that you were trying your best to get it fixed as quickly as you could.
- Member since 2023 · 122 posts · 68 votes3y
The A/C unit in storage I'm not crazy about. If you have two units go down. Now one has temp units and the other you have to end up doing what I said and that's communicating. People want to know you care. Let your tenants you are doing the best you can and that you care about their situation. Give them an estimated time for the repairs and honor it. Paying a couple of hundred dollars to move units and then a couple of hundred to retrieve them later is a big headache and costly. Plus, that could take a day or so to coordinate and what if they break a window or something? I would use this time to get with one of my A/C guys and fix their problem. The neat thing is in my city HVAC supply houses are everywhere I can't recall a time I had to wait for part. Typical things that go wrong are the relay, fan motor, capacitors, and thermostat. All are in stock. I like to be proactive and service units once a year in the spring right before heavy use. Filter change, condenser cleaning, and a good look-over of the inside unit. Just this alone can catch or prevent most problems. I'm not saying what the others are saying is wrong I'm sharing how I handle things with my properties.
- Member since 2022 · 38 posts · 9 votes3y
I would ask tenant to use rental insurance to get a hotel room. Do not lease with out rental insurance.
- Investor · Austin, TX · Member since 2013 · 662 posts · 1k+ votes3y
My leases specifically state that Heating an AC are not emergency conditions.
Yes, I will act as soon as possible with an AC issue in the summer but I do not offer or recommend landlords offer hotel nights during periods of no AC. If I had a tenant who was medically compromised to the point of being a serious health issue I would consider a hotel stay.
However, having grown up in San Antonio from 1st grade thur 11th grade with no AC in the house, i am less sympathetic in giving hotel assistance to my tenants.
Texas Landlord/Tenant Guide suggest 7 days to repair is reasonable after written notification has been given. After 7 days the landlord should provide actions taken to remedy the situation and additional time is reasonable if labor or parts are delaying repairs.
- Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes3yYour lease can say anything it wants doesn’t mean actions will hold up, but you at smart and make reference to the actual law! Buried in the statement you quoted is the phrase about accounting for actions taken once it takes longer than 7 days,which means you are—conceivably—having to explain to a judge what you did to mitigate.
Quote from @Joe Scaparra:
My leases specifically state that Heating an AC are not emergency conditions.
Yes, I will act as soon as possible with an AC issue in the summer but I do not offer or recommend landlords offer hotel nights during periods of no AC. If I had a tenant who was medically compromised to the point of being a serious health issue I would consider a hotel stay.
However, having grown up in San Antonio from 1st grade thur 11th grade with no AC in the house, i am less sympathetic in giving hotel assistance to my tenants.
Texas Landlord/Tenant Guide suggest 7 days to repair is reasonable after written notification has been given. After 7 days the landlord should provide actions taken to remedy the situation and additional time is reasonable if labor or parts are delaying repairs.
How hard is it to have someone drop off a portable/window AC in 24 hours??
agreeing with you by the way, just saying that folks need to treat this with urgency and it’s not that hard: it’s about living conditions not just a repair. This will ultimately save you money - Investor · Austin, TX · Member since 2013 · 662 posts · 1k+ votes3y
Quote from @Jonathan R McLaughlin:
Your lease can say anything it wants doesn’t mean actions will hold up, but you at smart and make reference to the actual law! Buried in the statement you quoted is the phrase about accounting for actions taken once it takes longer than 7 days,which means you are—conceivably—having to explain to a judge what you did to mitigate.Quote from @Joe Scaparra:
My leases specifically state that Heating an AC are not emergency conditions.
Yes, I will act as soon as possible with an AC issue in the summer but I do not offer or recommend landlords offer hotel nights during periods of no AC. If I had a tenant who was medically compromised to the point of being a serious health issue I would consider a hotel stay.
However, having grown up in San Antonio from 1st grade thur 11th grade with no AC in the house, i am less sympathetic in giving hotel assistance to my tenants.
Texas Landlord/Tenant Guide suggest 7 days to repair is reasonable after written notification has been given. After 7 days the landlord should provide actions taken to remedy the situation and additional time is reasonable if labor or parts are delaying repairs.
How hard is it to have someone drop off a portable/window AC in 24 hours??
agreeing with you by the way, just saying that folks need to treat this with urgency and it’s not that hard: it’s about living conditions not just a repair. This will ultimately save you moneyI hear you! I have 25 units I own/manage in Central Texas. I haven't yet have one take more than seven days to fix, except one that happened in November. Circuit board went out and took a little trouble shooting before we realized that and then got the board ordered. Even though November, the tenant was not happy but it is what it is and all ended well. Listen, we have rolling power outages in the Winter and Summer. Sometimes that may last days or even weeks for some. Landlords are no more responsible for those either.
Yes landlords need to get to the repairs in an expeditious manner. Most of my tenants tell me they haven't had a landlord like me in that I am very responsive. Every Christmas season, I personally drop off a little gift. It goes a long way and keeps my tenants happy. Cheers.
- Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes3y
Back up time, go buy a couple of window A/C's, drive over and install them.
Tell the renters you are sorry for the inconvenience, and will have someone over to look at the A/C as soon as possible.
Until then this is a stopgap.
While you are there, ask them if anything else needs fixing, broken screen, sticky door lock, oven missing a knob, etc....and get that fixed too.
Sometimes this kind of high temp messes up LVP flooring, if you have that installed, take a look at it for buckling or separating.
Good Luck!
- Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes3y
@Scott Mac cant source it but I remember a surey that says stores get their highest satisfaction ratings when they dealwell with mistakes, not by being perfect. Gotta be a lesson in there
- Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes3y
Quote from @Jonathan R McLaughlin:
@Scott Mac cant source it but I remember a surey that says stores get their highest satisfaction ratings when they dealwell with mistakes, not by being perfect. Gotta be a lesson in there
Well Said!
- 3yNed J.Pro MemberInvestor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
This is always a legal vs moral/ethic/customer service debate....
You have met what the law requires you to do.....stuff happens and things sometimes are out of your control even with your best effort.
As LL you have to decide on the ethics/moral/customer service side..... there is no right/wrong answer. YOU decide and deal with the pro/con of your decision.
For me...as soon as I knew there would be a delay in getting it fixed, I would have tried to get portable units as a stop gap. If I couldn't do that, then we discuss a possible hotel but that has to happen BEFORE the tenant makes that choice and then expects me to pay... not after.
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