Tenant wants to break lease due to AC

Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes

3y

Hello BP community,

I am currently renting a home to a family that has been in my unit for about 3 months. Since they've moved in there's been numerous complaints about the A/C not cooling to the desired temp and maintaining the temp. Each time I've addressed the issues by calling an A/C company to come out and check/fix the problem. (The tenant wants A/C to reach 65-68 in the home.) Multiple times it has reached the desired temp but struggled to maintain due to various reasons which have been addressed (+its been 100 degrees outside for the past 3 weeks). After the most recent A/C repair, the home reaches 65-68 consistently but now the tenant is complaining that, although the house is reaching 65-68, the master bedroom and office are not getting to that temp.

Nowhere in the lease does it state that the temp must reach 65-68. but I have an e-mail response to the tenant before they moved in where they asked, "due to wife's medical condition, temp needs to be kept around 65-68, will A/C be sufficient to accommodate this?" To which I replied, "Yes the AC works fine." **Before move-in I had an A/C company verify the unit is fully functional and problems started to happen after they began utilizing the system to maximum capacity.

To "fix" the issue of room temp A/C company said would cost thousands per room to tear into the wall to check the ductwork. To me, this is not an option because the room is just a few degrees warmer than the thermostat. Instead, I offered to install a mini-split in the bedroom and a ceiling fan in the office.

They are insisting they would rather be released from the lease without penalty and it wouldn't be "fair" to have to break the lease to the terms. (Penalty for breaking lease is 60 days notice + additional 2 months rent fee)

I've done everything in my power to accommodate the tenant and diligently had professionals come out each and every time in a timely manner to address the A/C issues, and even offered to add mini-split and ceiling fan but they would still rather me break the lease without penalty.

1. Based on my actions and my proposal to fix A/C issues, am I legally good to stand my ground and make them abide by the terms of the lease?

2. Am I even legally obligated to accommodate a mini-split and ceiling fan to the 2 rooms although the house as a whole is reaching the desired temp?

Thanks for any/all advice.

68 degrees is ridiculous with the kind of heat we have been having here in Central Texas. I doubt any of our properties in New Braunfels would get to 68 degrees without the AC running 24/7 and the electric bill would be astronomical. I would personally just let them break the lease.

3 Reply

Richard F.

Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes

3y

Aloha,

Your mistake was responding as you did to the email. Let them out of the agreement, charging them only for their days of possession until keys are turned over. They still need to leave it clean and free of damages and personal property. But, no penalty.

Pick up a couple of these and see what the actual temps are during the cooling cycles:
https://www.amazon.com/Elitech-RC-5-Temperature-Reusable-Rec...

Keep in mind, NO AC can cool more than about 20 degrees below ambient. If you have long duct runs, poor insulation, "loose" construction, areas of high heat buildup that cannot escape...YMMV.

2 Reply

Nicho C.

OP

Member since 2021 · 8 posts · 2 votes

3y

Quote from @Richard F.:

Aloha,

Your mistake was responding as you did to the email. Let them out of the agreement, charging them only for their days of possession until keys are turned over. They still need to leave it clean and free of damages and personal property. But, no penalty.

Pick up a couple of these and see what the actual temps are during the cooling cycles:
https://www.amazon.com/Elitech-RC-5-Temperature-Reusable-Rec...

Keep in mind, NO AC can cool more than about 20 degrees below ambient. If you have long duct runs, poor insulation, "loose" construction, areas of high heat buildup that cannot escape...YMMV.

Hey Richard,

I appreciate the response. Would it not be a viable option to add the mini-split and ceiling fan? The rest of the home is reaching 65-68 while the two rooms are only mildly warmer. Like I stated before, I believe the only reason they want to break the lease is they didn't realize how much the electric bill would be and want to leave without penalty. As a landlord, as long as I make sure the rooms are reaching 65-68 in whatever way, am I not sticking to the original agreement? I already have done the previous tenants a favor by letting them break the lease when they purchased a new home and now after moving in this family 3 months ago, I'd like to stick to terms of the lease if they wish to break the lease. Again, thank you for your response and I look forward to hearing your opinion.

0 Reply

Bill B.

Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes

3y

It seems like you would be better served by hiring a PM. This is two tenants in a row that may cost you more in lost rent than they would charge in fees. They may do a better job of screening tenants and may even bring in more rent. I’m pretty sure we’re as hot or hotter and I’ve never had a tenant break a lease with a dozen properties in more than 20 years. I’m sure the properties can be cooled to 68 or even cooler, but most of my properties and ac units are less than 20 years old.

I think tenants are just less likely to push for more and more concessions or it break the lease when they know they are dealing with a professional company that has written procedures for how to break a lease and what it costs.

2 Reply

Nathan GesnerBusiness Member

Moderator

Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

3y

Quote from @Nicho C.:

I apologize, but I didn't even read your entire post. A/C is not designed to maintain temps at 68 degrees when the outside temp is 100+. The Department of Energy recommends a setting of 78.

I recommend you educate yourself on the proper use of air conditioning, then educate your tenants. You've probably wasted hundreds of dollars to have a tech look at a properly functioning system.

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6 Reply

Nicho C.

OP

Member since 2021 · 8 posts · 2 votes

3y

Quote from @Account Closed:

Quote from @Nicho C.:

Hello BP community,

I am currently renting a home to a family that has been in my unit for about 3 months. Since they've moved in there's been numerous complaints about the A/C not cooling to the desired temp and maintaining the temp. Each time I've addressed the issues by calling an A/C company to come out and check/fix the problem. (The tenant wants A/C to reach 65-68 in the home.) Multiple times it has reached the desired temp but struggled to maintain due to various reasons which have been addressed (+its been 100 degrees outside for the past 3 weeks). After the most recent A/C repair, the home reaches 65-68 consistently but now the tenant is complaining that, although the house is reaching 65-68, the master bedroom and office are not getting to that temp.

Nowhere in the lease does it state that the temp must reach 65-68. but I have an e-mail response to the tenant before they moved in where they asked, "due to wife's medical condition, temp needs to be kept around 65-68, will A/C be sufficient to accommodate this?" To which I replied, "Yes the AC works fine." **Before move-in I had an A/C company verify the unit is fully functional and problems started to happen after they began utilizing the system to maximum capacity.

To "fix" the issue of room temp A/C company said would cost thousands per room to tear into the wall to check the ductwork. To me, this is not an option because the room is just a few degrees warmer than the thermostat. Instead, I offered to install a mini-split in the bedroom and a ceiling fan in the office.

They are insisting they would rather be released from the lease without penalty and it wouldn't be "fair" to have to break the lease to the terms. (Penalty for breaking lease is 60 days notice + additional 2 months rent fee)

I've done everything in my power to accommodate the tenant and diligently had professionals come out each and every time in a timely manner to address the A/C issues, and even offered to add mini-split and ceiling fan but they would still rather me break the lease without penalty.

1. Based on my actions and my proposal to fix A/C issues, am I legally good to stand my ground and make them abide by the terms of the lease?

2. Am I even legally obligated to accommodate a mini-split and ceiling fan to the 2 rooms although the house as a whole is reaching the desired temp?

Thanks for any/all advice.

68 degrees is ridiculous with the kind of heat we have been having here in Central Texas. I doubt any of our properties in New Braunfels would get to 68 degrees without the AC running 24/7 and the electric bill would be astronomical. I would personally just let them break the lease.

Yes, I agree but apparently its due to a medical condition. My issue with just allowing them to "break" the lease without penalty is the house is actually reaching 65-68. The master bedroom and office is only mildly warmer for whatever reason. Every time i've went to the house with an AC tech the home was freezing. I believe they are just trying to find any excuse to break the lease because they got their first couple electric bills. I do not want to do any favors if I am abiding by agreed terms.

Thanks again for your response, look forward to hearing your reply.

0 Reply

Bruce WoodruffPro Member

Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes

3y

Quote from @Nicho C.:

NO! You are dealing with an unreasonable tenant. Let them go and be happy about it. Why spend thousands more on them? This is a very unreasonable request, it is over-taxing your equipment and shortening it's life by running constantly...you have the facts to back you up....and next time, never promise that a system will maintain a specific temperature, you're just asking for trouble like this.

6 Reply

Travis TimmonsPro Member

Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes

3y

There is the inclination to just answer yes when prospective tenants apply. You have to resist that urge. Be comfortable saying, "No, we can't do that," before a lease is signed.

Outside of that, this one is easy. You let them out of the lease penalty free. Everybody wins.

2 Reply

Nicho C.

OP

Member since 2021 · 8 posts · 2 votes

3y

Quote from @Bill B.:

It seems like you would be better served by hiring a PM. This is two tenants in a row that may cost you more in lost rent than they would charge in fees. They may do a better job of screening tenants and may even bring in more rent. I’m pretty sure we’re as hot or hotter and I’ve never had a tenant break a lease with a dozen properties in more than 20 years. I’m sure the properties can be cooled to 68 or even cooler, but most of my properties and ac units are less than 20 years old.

I think tenants are just less likely to push for more and more concessions or it break the lease when they know they are dealing with a professional company that has written procedures for how to break a lease and what it costs.

I also forgot to mention the tenant before the previous tenant I had to evict which took 4 months with a lawyer. So I am definitely learning everything the hard way but I am learning lol. I'm working on getting my real estate license so this is not something I want to give up on doing myself. Thanks for your input, i'll definitely make sure to not make the same mistakes moving forward.

2 Reply

Nicho C.

OP

Member since 2021 · 8 posts · 2 votes

3y

Quote from @Bruce Woodruff:

Quote from @Nicho C.:

NO! You are dealing with an unreasonable tenant. Let them go and be happy about it. Why spend thousands more on them? This is a very unreasonable request, it is over-taxing your equipment and shortening it's life by running constantly...you have the facts to back you up....and next time, never promise that a system will maintain a specific temperature, you're just asking for trouble like this.

Bruce, I am only asking if this is a viable option to say, by doing this am I legally doing my job as a landlord to stand firm on the terms of the lease. Like I mentioned before, I believe they are just trying to find ways to break the lease without penalty and intend to end the lease regardless. I just want to make sure my actions are legally sufficient to stand firm on the penalty for breaking the lease. I hope this makes sense. Thanks for your input and i look forward to hearing your response.

0 Reply

Bob S.

Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes

3y

Quote from @Nicho C.:

Hello BP community,

I am currently renting a home to a family that has been in my unit for about 3 months. Since they've moved in there's been numerous complaints about the A/C not cooling to the desired temp and maintaining the temp. Each time I've addressed the issues by calling an A/C company to come out and check/fix the problem. (The tenant wants A/C to reach 65-68 in the home.) Multiple times it has reached the desired temp but struggled to maintain due to various reasons which have been addressed (+its been 100 degrees outside for the past 3 weeks). After the most recent A/C repair, the home reaches 65-68 consistently but now the tenant is complaining that, although the house is reaching 65-68, the master bedroom and office are not getting to that temp.

Nowhere in the lease does it state that the temp must reach 65-68. but I have an e-mail response to the tenant before they moved in where they asked, "due to wife's medical condition, temp needs to be kept around 65-68, will A/C be sufficient to accommodate this?" To which I replied, "Yes the AC works fine." **Before move-in I had an A/C company verify the unit is fully functional and problems started to happen after they began utilizing the system to maximum capacity.

To "fix" the issue of room temp A/C company said would cost thousands per room to tear into the wall to check the ductwork. To me, this is not an option because the room is just a few degrees warmer than the thermostat. Instead, I offered to install a mini-split in the bedroom and a ceiling fan in the office.

They are insisting they would rather be released from the lease without penalty and it wouldn't be "fair" to have to break the lease to the terms. (Penalty for breaking lease is 60 days notice + additional 2 months rent fee)

I've done everything in my power to accommodate the tenant and diligently had professionals come out each and every time in a timely manner to address the A/C issues, and even offered to add mini-split and ceiling fan but they would still rather me break the lease without penalty.

My theory: They regret renting a 3000sq ft home with high ceilings where the A/C is kept at 65 all day and night in 100-degree weather and got their first couple of electric bills and want to find a way to get out of the 1-year lease without penalties.

1. Based on my actions and my proposal to fix A/C issues, am I legally good to stand my ground and make them abide by the terms of the lease?

2. Am I even legally obligated to accommodate a mini-split and ceiling fan to the 2 rooms although the house as a whole is reaching the desired temp?

Thanks for any/all advice.

Sounds like pain in the *** tenants, Put in a window unit for a month, problem solved,

5 Reply

Chris McCue

Property Manager · DFW, TX · Member since 2023 · 9 posts · 11 votes

3y

First let me start with I'm in DFW and have been dealing with tenants (in the commercial realm) that don't understand how AC's are designed to work.

I think the real question you have to ask yourself is WHY? WHY do you want to make them stay? WHY would you want to spend thousands of dollars making your suggested accommodations (that may still not consistently solve the problem) on a tenant that in 3 months time has already cost you so much?

Do you think that the next 9 months are going to go smoothly? Your history with them shows you they more than likely won't and you will just end up with more issues from the tenant which might end up costing you more.

Your theory is just that a theory and it has no matter in the case. People often look for ways to get out of a lease or it could just be that you overpromised and lesson learned. Either way it really doesn't matter in the case.

As others have expressed an AC isn't designed to cool to such a significantly different temperature than the outside air. Now had you not made this promise in writing before hand yes you would be legally correct in not allowing them to break their lease without penalty. But again ask yourself WHY? Why push the issue? Your penalty is 60 days notice + additional 2 months rent so is that cashflow going to really cover the added expense of pushing legality? Plus not to mention you want your tenants to leave the space in a nice and well kept manner. Do you think by fighting with them they are going to respect your property? You've already spent all if not more than what your 3 months cashflow has brought in by calling AC repair guys out for a non-issue. Then take into account the strain they are putting on one of your biggest expenses in owning a home the AC unit. All that tenant is doing is killing your units lifespan.

So again ask yourself WHY? If you're posting here more as a "in the future" kind of learning question then I understand we must learn the lessons. The lesson here is never over promise! You should of responded to that original email from them with a response similar to the extent of "Hi, The AC in the house has been recently serviced and is functioning properly. Although you should understand that an AC cannot guarantee such low temperatures consistently with the extreme heat waves we experience here in Texas." Then I would even cc a link to The Department of Energy's website showing the guidelines.

Obviously you don't want to set a precedent for letting tenants out of their lease, but you also have to make the best judgement with each situation on what is best for you. You can't carry over the previous tenant situations to the next tenant and use that against them. All you can do is learn from lessons and move forward. You already stated the last eviction cost you 4 months with a lawyer so did you learn your lesson about legal fees? Think pressing this with legality will be cheaper?

My opinion would be in the long run you will find that the short term mindset will kill you. Thinking short term is what you are doing. Spending money to make accommodations for a problem tenant will only hurt you in the long run. Don't fret the short term inconvenience of them breaking their lease without penalty, in the long run keeping them there would cost you more than the penalty. You are in a market with plenty of quality tenants, help these troublesome tenants out of your property respectfully and learn the lessons. Maybe look are better methods of tenant screening, remember there is more of a affordable housing shortage than there is a tenant shortage. When screened and priced properly your life will begin to get a whole lot easier. Sorry for the long response hope this helps.

7 Reply

Craig Janet

Member since 2019 · 223 posts · 261 votes

3y

Why in the world did you promise 65 degrees in writing? That was a huge mistake. AC's in the south aren't designed for that and now YOU are violating your own lease.

I think the medical condition is BS. I'm no doctor but I've never heard of a medical condition that requires 68 degrees and if the temp rises 2 degrees you will die.

I would just put a $150 window unit in the bedroom (you should have some already) and if that doesn't work for them let them walk.

4 Reply

Christopher Jason LloydBusiness Member

Real Estate Broker · Newport News, VA · Member since 2020 · 95 posts · 83 votes

3y

If the contractors state it is in good working order, I would let the tenant know that they are at liberty to get a window unit for additional cooling if they desire.

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1 Reply

Colleen F.Pro Member

Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes

3y

@Nicho C. Explain AC to your tenants so they understand it can only cool so much. I don't know of any medical condition that requires you to be at 65 to 68 degrees AC. If that is the case and they are in a hot location that medical condition should have them moving. I would let them go without penalty with the requirement they let you show while they are there and they pay until you get a new tenant. They sound awful.

1 Reply

Tim Miller

Rental Property Investor · Laurel, MD · Member since 2016 · 378 posts · 382 votes

3y

First off, H-E-L-L NO! Do not waste any more money on these tenants. Tell them that the systems is working properly for a 3,000 sq ft house. Period and end of story. Mr. & Mrs tenant, if you do like it, please provide your 60 day notice and I'll only require 1 months early termination fee. If you do not like that, than you will have to accept the current house AS IS until the lease ends. Have a good day!

It's really that simple. Good luck.

7 Reply

Mohammed Rahman

Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes

3y

@Nicho C. -as others have already mentioned, getting into any kind of "negotiation" process with the tenants is never ending because one side will continue to move the goal posts lol.

Seems like they want out of their lease and are using the AC as a reasoning - you should communicate that the AC is working fine as per the AC company and you'd be happy to terminate lease early with proper notice and lease termination fee.

I bet they will change their stance after that.

HOWEVER - if the AC truly isnt' working and you've checked it out for yourself... don't be a slumlord and let them out so you can fix the system properly.

At the end of the day tenants are your customers and although customers aren't always right, they should always come first.

3 Reply

Colleen F.Pro Member

Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes

3y

0 Reply

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

3y

Let them out of the lease. 65 in a hot summer may not be possible. Also what are they doing to help keep the house cool? Are they closing curtains on the south facing windows to keep sunlight out, do they have doors and windows open?

I know someone with a minisplit-but you have to keep the temps for the two units within a certain range (eg 5C).

When you rerent it, check if you are at market value for rent. It can be frustrating at the time, but think big picture. You are likely better off with another set of tenants and adding a fee for breaking the lease to the new lease.

2 Reply

Royce Talbo

Investor · Kaneohe, HI · Member since 2012 · 218 posts · 104 votes

3y

@Nicho C. Everyone here has years of experience and are telling you to let them go. You keep asking the question of is it legal to hold them to the lease and add another ac. Does that really matter if the best option is just let them go? If you really want to know legalities I would contact a lawyer and not trust what the internet says.

0 Reply

Nicho C.

OP

Member since 2021 · 8 posts · 2 votes

3y

Quote from @Royce Talbo:

@Nicho C. Everyone here has years of experience and are telling you to let them go. You keep asking the question of is it legal to hold them to the lease and add another ac. Does that really matter if the best option is just let them go? If you really want to know legalities I would contact a lawyer and not trust what the internet says.

Am I not allowed to ask questions here? Before paying a lawyer to answer my questions? Ive read through a lot of other posts here on this site where the landlord simply added a window unit and wanted to confirm if that was a sufficient action for this scenario. I’ve gotten a lot of good feedback and will assess the next move. I’m not asking the question repeatedly I’m simply responding to multiple responses. But thank you for your feedback.

0 Reply

Todd Jones

Member since 2023 · 243 posts · 199 votes

3y

Quote from @Nicho C.:

Quote from @Royce Talbo:

@Nicho C. Everyone here has years of experience and are telling you to let them go. You keep asking the question of is it legal to hold them to the lease and add another ac. Does that really matter if the best option is just let them go? If you really want to know legalities I would contact a lawyer and not trust what the internet says.

Am I not allowed to ask questions here? Before paying a lawyer to answer my questions? Ive read through a lot of other posts here on this site where the landlord simply added a window unit and wanted to confirm if that was a sufficient action for this scenario. I’ve gotten a lot of good feedback and will assess the next move. I’m not asking the question repeatedly I’m simply responding to multiple responses. But thank you for your feedback.

I’m with @Bob S. on this one. Put in a window unit in the master bedroom today = solved.

I don’t put much blame on the tenant. They asked a legitimate question if your home provided the services they need (65 - 68 degrees). You said in writing “Yes”. Come to find out, it didn’t. So, should they be penalized for this? Of course not.

If they don’t like the window unit or it doesn’t lower the temp to their requirements (which it may not), they leave with no penalties since they came in under inaccurate pretenses.

2 Reply

Royce Talbo

Investor · Kaneohe, HI · Member since 2012 · 218 posts · 104 votes

3y

Quote from @Nicho C.:

Quote from @Royce Talbo:

@Nicho C. Everyone here has years of experience and are telling you to let them go. You keep asking the question of is it legal to hold them to the lease and add another ac. Does that really matter if the best option is just let them go? If you really want to know legalities I would contact a lawyer and not trust what the internet says.

Am I not allowed to ask questions here? Before paying a lawyer to answer my questions? Ive read through a lot of other posts here on this site where the landlord simply added a window unit and wanted to confirm if that was a sufficient action for this scenario. I’ve gotten a lot of good feedback and will assess the next move. I’m not asking the question repeatedly I’m simply responding to multiple responses. But thank you for your feedback.

Of course you are allowed to ask questions, its encouraged, but it seems like you made up your mind on what you want to do and not taking the advice given in the responses that you gave. it might not be the answer you were searching for, but it is the best route to take.

Again if you are questioning legalities would you trust people who you have never met to give you legal advice and it turns out being wrong. what happens if they were wrong and you get sued? i would advise anyone asking any legal question to contact their lawyer if they are worried not just in this situation.

If you asked should i let them break the lease or keep them and try to accommodate them. or if you asked should i put in an ac for them even though they declined. then i wouldnt have advised to talk to a lawyer. your questions where to legally stand your ground and are you legally obligated to provide a mini split.

you already offered to put in a mini split and they dont want it. if people dont want to stay its best to let them go because it could cost you a lot more than a vacancy. also think about if you do put a mini split how much it will cost you and will add value for the next tenant when this one leaves at the end of their lease. idk how much your rent is, but im guessing to install a mini split is more costly and would be several thousand vs losing couple thousand for vacancy?

1 Reply

Carlos Ptriawan

Member since 2019 · 7k+ posts · 4k+ votes

3y

Quote from @Bruce Woodruff:

Quote from @Nicho C.:

NO! You are dealing with an unreasonable tenant. Let them go and be happy about it. Why spend thousands more on them? This is a very unreasonable request, it is over-taxing your equipment and shortening it's life by running constantly...you have the facts to back you up....and next time, never promise that a system will maintain a specific temperature, you're just asking for trouble like this.

Yeah, this is unique case where the landlord is good and tenant is troublemaker, usually it's the other way around here in BP. I would let them go as well. They would complain about something else in the future.

0 Reply

Ned J.Pro Member

Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes

3y

2 options

(1) Get them to accept a window unit, mini split or other supplemental AC to make these rooms meet their criteria- and they will still likely be a huge PITA over it and/or start to complain about a bunch of other stuff, so have fun with that..

(2) Let them break the lease and move on. Be more careful with your screening and what you promise..... learn for the next time and move on.

I know what I'm picking.

0 Reply

Tenant wants to break lease due to AC

Tenant wants to break lease due to AC

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