Tenants heat is out, what to do?

Investor/Contractor · Moore, SC · Member since 2017 · 54 posts · 28 votes

My tenants heat went out last night. Luckily, I have a home warranty. I called and the soonest they can get one of their contractors out there is Monday. The tenant is not happy about this with today being Thursday. I could call an emergency HVAC guy over to fix it, but then the cost would be out of pocket.

Should I handle the situation myself out of pocket, or tell him he is going to have to wait? If I make him wait, how should I make the situation right, deduct some rent off? Whats your advice?

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Nathan GesnerBusiness Member

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

@Matthew Paul those temperatures are in Celsius. The actual temperatures are 50 - 70 degrees fahrenheit. I'm getting highs of 50 this week and we're running around in t-shirts and washing cars. I think they'll survive.

He made the call, the work is scheduled, and the temperatures are liveable. He should bring the tenants some space heaters to get them through the next few days but that's it.

I would not offer any discount on rent because they're not really suffering. As @Cara Lonsdale pointed out, my mortgage company doesn't cut me a break when the furnace goes out or a water pipe busts. There's no loss of use and the inconvenience is extremely minor.

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Ron Fletcher
Leclaire, IA · Member since 2016 · 161 posts · 130 votes
8y
I had this issue this winter. I delivered two space heaters to get tenant through the weekend. Everyone was happy.
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Shadonna N.
Developer · . · Member since 2014 · 520 posts · 162 votes
8y
This was a bad winter. I had that situation, the tenant had the vent closed which was part of the issue. I also need a pipe that was covered in ice and it was causing the furnace to turn off and on. I have a warranty but I also have a HVAC guy who can respond quickly. I will most likely save the warranty for the big repairs.
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Raimel Diaz
Buy and hold Investor · Winter Garden, FL · Member since 2015 · 38 posts · 13 votes
8y
Whatever you do do not give a discount on the rent for that month. Its going to set a bad example for when something happens again. They are going to expected you to discount the rent. Just buy some space heaters in the time been. And call the Home warranty company, speak to supervisor so they could send someone ASAP.
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Account Closed
Investor · Milwaukee, WI · Member since 2013 · 1k+ posts · 1k+ votes
8y
Redundant at this point, but I keep a few space heaters around for this sort of thing too. A couple decent ones will heat an entire unit well enough. Get the radiator/oil type, not the fire-hazard exposed-coil type. Keep them in your basement and run them out when needed. Your part of the country might only require they put some clothes on - lol. Up here, heat is a must or you die.
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Christopher Finn
Real Estate Investor · East Brunswick, NJ · Member since 2017 · 94 posts · 71 votes
8y
@Ryan Davis Glad that you were able to get things figured out, transparency really goes a long way in building trust and keeping good tenants.
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Bart H.
Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
8y
Originally posted by @John Underwood:

@Ryan Davis I would call the warranty company back and tell them they need to get someone ASAP or they need to let you get this done and reimburse you for the repair.
I have heard that these home warranties are not worth the money. They charge you an annual rate and then the out of pocket costs for extras like freon tend to make the repair costs as much as it would cost to hire your own person. Also they don't tend to be quick in getting the repair handled as you are finding out first hand.
You will now if this warranty is worth it after you get the bill from the warranty company.
If you have a pleasant experience please share after the fact.
Agreed, we avoid Home Warranties for just that reason. We just have a good stable of contractors and get them over to fix things.
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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
8y
Home warranties are a form of insurance. You buy insurance for risks that you cannot afford to cover yourself. These are profitable for the companies that sell them. So, like all forms of insurance, are a net negative. Nevertheless when you're talking about losses in the 10's or 100's of thousands, you probably need insurance. For losses of 100's or even a few grand, which is all these home warranties will cover, they are worthless. If you cannot cover a $500 or even $5000 bill today, you should really think twice about owning rentals. Save up a reasonable cash cushion (six months rent, minimum) and you're set.
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Rachel H.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
8y
@Ryan Davis Depends what your lease says. Also, be sure what you do is in line with the property code of your state. Good luck!
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Scott Weaner
Rental Property Investor · Yardley, PA · Member since 2008 · 1k+ posts · 561 votes
8y
Originally posted by @Michael Noto:

Provide space heaters until the repair is done. The tenants need heat in temperatures like that, plain and simple.
Temperatures like the freezing South Carolina winters? Please.
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Frank Chin
Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes
8y
I have a service contract for heat and home water through the company that sells heating oil. I used to use my own guys except when emergencies occur, it seems to be on 3 day weekends or 3:00am. I have to go through the yellow pages back then to look for emergency 24 hour plumbers. With the service contract, I give the tenant the 24 hour emergency number, they call and make the appointment directly, and would know directly when they'll come.
I keep a few space heaters around for emergencies, but with service contracts, I haven't used or needed them in years, and fortunately I had no complaints. My big worry is in cold climates, extreme cold in the house and long delay in repair could cause pipes to burst costing even more money.
So service contracts for heating works for me, particularly if it's through my oil company. I had hot water tanks changed. But maybe not so efficient if it's a home warranty company that covers all repairs, which I heard complaints about. I long ago decided it was cheaper to replace appliances that I supply when they break, buying new ones, instead of warranties.
I been doing rentals for nearly 40 years and have yet to credit tenants for this issue, and don't want to get into the habit of doing so.
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Al Pat
Rental Property Investor · Atlanta, GA · Member since 2016 · 325 posts · 253 votes
8y
I had this happened to me and I spoke with tenant about scheduling delays. I also bought two space heaters for couple of days or may be three days. Once everything became normal, I returned the space heaters to store as I didn't want to store them. Tenants were happy, no rent deduction was offered.
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John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
8y
Had a tenant without heat this winter during a cold snap (temps about 19-20 degrees Fahrenheit)
Checked out package unit, scheduled a unit replacement, brought over three space heaters to add to their 1. Had new unit installed 3 days later and had to wait another two days for propane fill up. It was a debacle but it all worked out. Tenants are happy about the new high efficiency air conditioning they'll benefit from this summer. The key is to take some kind of action immediately and make it known you are doing the best you can to alleviate the problem. We have a reputation as attentive landlords and want to keep it.
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Ryan Swan
Real Estate Agent · Phoenix, AZ · Member since 2012 · 640 posts · 457 votes
8y
This is the exact reason I don't purchase home warranties on my own rentals, nor do I recommend them for my clients. You are giving up all control for the possibility of saving a few bucks on a repair. They always seem to send the bottom of the barrel contractors who don't have a sense of urgency.
Compare this to my trusted HVAC contractor who will come out for a $50 service fee and can usually fix any issue the same day, if not the next day (or at least ASAP if it's a more complicated fix).
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