What would you do in this awkward landlording situation?

What would you do in this awkward landlording situation?

Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes

I rented out one of my properties a couple months ago. I vaguely remember that I thought there was central air in this one because I had glanced at the thermostat and it had a "cool" option (yeah, they all start to blend together) and that I mentioned this on a couple of the tours.

I must have mentioned it when the people who became my tenants took the place, because I just got a text saying the central air isn't working. (It's very hot in Cleveland right now.) Thinking about it now, I don't think that house actually does have central air. I think it just has a thermostat with a "cool" option. D'oh.

Tenant's text says "we're paying for central air" which isn't really true, they're paying a pretty reasonable rent for the area. I also checked their lease and AC isn't listed as something I provide on it. But I don't want to be a jerk. And they're generally good tenants.

What would you do?

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Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
8y

You promised them X, Y, & Z for your requested amount of rent. They paid that requested amount for rent and you only delivered X & Y. Seems pretty clear cut.

It wasn't a misunderstanding, it was a mistake on your part and as the party who made the mistake, you need to rectify it. Be honest with them and explain what happened. Offer them a rent reduction for the hot months and see if they are reasonable. If they aren't, offer to let them break the lease and consider covering some of their moving expenses.

Ask yourself what would a judge/jury think if they took you to court? Would they think it was just an honest mistake and the tenants should have known better and should just suck it up or would they think you promised something and didn't deliver? The fact that AC isn't listed in the written contract is meaningless. You stated it had AC and based on the thermostat on the wall, a reasonable person would believe the unit had AC.

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  • Joe SplitrockPro Member
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    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    8y

    @Gwen Fyfe by your own admission, you remember telling people the unit had central air. That is a decision maker for why tenants chose one property over another. The price did include AC, because you told them it had AC. I understand you are back peddling because you made a mistake, but it is not fair to act like the tenant is being unreasonable. 

    You should either install air conditioning or let them out of their lease penalty free.

    I am curious, do you live in a home that doesn't have central air? That wouldn't work for my family, so I understand why this is a big deal to them.

  • Rental Property Investor · Cleveland, OH · Member since 2016 · 227 posts · 287 votes
    8y
    Originally posted by @Joe Splitrock:

    @Gwen Fyfe by your own admission, you remember telling people the unit had central air. That is a decision maker for why tenants chose one property over another. The price did include AC, because you told them it had AC. I understand you are back peddling because you made a mistake, but it is not fair to act like the tenant is being unreasonable. 

    You should either install air conditioning or let them out of their lease penalty free.

    I am curious, do you live in a home that doesn't have central air? That wouldn't work for my family, so I understand why this is a big deal to them.

    I don't think the tenant is being unreasonable. I made a mistake, but I also didn't put AC on the ad or the lease. I'm getting them window units, as I have said numerous times at this point. 

    There are people here suggesting that I say it was a misunderstanding and tell them to buy it themselves, which I really don't think is okay, and then other people who seem to think I'm a slumlord to even bother checking whether I guaranteed AC in the lease. 

    Interesting to watch although it would be nice to stop getting jumped on.

  • Rental Property Investor · New Castle, DE · Member since 2016 · 376 posts · 158 votes
    8y
    @Gwen Fyfe I feel you're doing the right thing. Admitting that you made a mistake shows you are of good character. Buying window units to rectify the situation is a cost effective effort and shows you are a good land lord!
  • Carolina · Member since 2017 · 519 posts · 222 votes
    8y
    @Gwen Fyfe You are doing the right thing. 😋
  • Shelbyville, IN · Member since 2017 · 28 posts · 4 votes
    8y
    Is central air a good investment rather than having air conditioning units and floor board heater? How much would the cost run typically? Would it be a waste of capital to replace the old and bring in the new?
  • Investor · Kingston, PA · Member since 2017 · 27 posts · 9 votes
    8y
    @Gwen Fyfe Sorry Gwen. My frustration was with others that are suggesting you say it was a “misunderstanding” or not admit that you said ther was central air. All I’m saying is own the mistake and offer to allow them out of the lease and propose a few other optIons as some have suggested (reduced rent, you provide wIndow units) . In business stepping up to the plate and doing the right thing goes along way .
  • Property Manager · Fayetteville, NC · Member since 2012 · 51 posts · 15 votes
    8y
    @Steve B. There are no such thing as off handed remarks in real estate, you can be accountable for everything you say during a showing. Especially if your an agent. Admit your mistake, and neither let them out of the lease or install a Mr. Slim Mitsubishi air unit which is a lot less than central air and can solve their problem for the few summer months that the temps will be uncomfortable.
  • Property Manager · Fayetteville, NC · Member since 2012 · 51 posts · 15 votes
    8y
    @Gwen Fyfe There are no such things as off handed remarks in real estate, you can be accountable for everything you say during a showing. Especially if you are an agent. Admit your mistake, and either let them out of the lease or install a Mr. Slim Mitsubishi air unit which is a lot less than central air and can solve their problem for the few summer months that the temps will be uncomfortable.
  • Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    8y

    @Gwen Fyfe I think you are making it right by meeting them in the middle.  It was an honest mistake, but I don't think an offhanded comment entitles them to have central AC installed, especially since you are in the midwest.  I will assume that having central AC is not the norm.  If this were Texas, that's obviously a different situation.  Here in upstate NY it is NOT a local custom to expect central AC, and window ACs are typically purchased by the tenant if needed to adjust the interior climate to their liking.

    Another thing you can do before you run out and buy your AC units, is ask the tenants what they think would be a fair resolution.  But bottom line, I think you are on the right track.

    I think comments about characterizing this as a "misunderstanding" being a sleaze slumlord move is a bit dramatic.  You know, another thing we landlords hate is when others label our actions and business decisions as always being unscrupulous in intent.

  • Rental Property Investor · Littleton, CO · Member since 2014 · 150 posts · 114 votes
    8y

    @Gwen Fyfe Good call, I think all of us have had that "oh c%@p moment when we realize an offhand remark just cost us time or money. Your tenants will appreciate your honesty and the AC, you can probably get a good deal on units this time of year. I don't think anyone needs to allow tenants to walk all over them, but being fair and seeing their point of view is not only the right thing to do from a human perspective, but is good business because it retains tenants and move/out/make ready for new tenants always costs time and $$$.

  • Bradenton, FL · Member since 2017 · 168 posts · 39 votes
    8y
    @Gwen Fyfe Who would live in a place that does not have air conditioning? Really Gwen?? You should explain to the tenant there was not AC listed but you eould purchase some Window units.
  • Rental Property Investor · Pulaski, VA · Member since 2016 · 70 posts · 31 votes
    8y

    I've found that when tenants are demanding like that from the start, they can become a problem. I would tell them you had made a mistake in thinking there was central air, maybe show them the comparable rents in the area, and ask if they want to be released from the lease. If it's a popular area, maybe it won't take long to find a new person. You could also mention the idea of a window unit air conditioner. 

  • Philadelphia, PA · Member since 2017 · 824 posts · 1k+ votes
    8y
    Originally posted by @Marty Summers:
    @Gwen Fyfe

    Who would live in a place that does not have air conditioning? Really Gwen?? You should explain to the tenant there was not AC listed but you eould purchase some Window units.

    Plenty of older units do not have AC, nor do they have window units standard. I just purchased a property with several windows and no AC...I expect my tenants to purchase. Now, if I had a lot of walkthroughs and folks said they weren't going to rent until there were units, I might consider buying and making them part of the rental. Hasn't happened yet.

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