What would you do - Tenant broke AC

Question

Hello,

I have a tenant who stated that their AC was not working. This was strange because I had the AC assessed last year and refilled with Freon. It’s an older unit and I was planing on replacing in 2 to 3 years but the technician told me the reason the unit went out was because the tenants left the thermostat on at 45 degrees for several weeks, meaning the AC wasn’t able to turn off and reset. I got quoted $3500 to replace the unit and lines. The property wasn’t advertised with central air and it doesn’t state central air on the lease. Should I buy a few portable window units or replace the entire unit and line? Also how can I make sure that if it occurred again the tenant would assume that cost? What would you do?

Scott E. · Answer

Here are some of my thoughts...

-How does the tech know that the thermostat was left on at 45 degrees for several weeks? Is there really any way to prove that? (I didn't even know thermostats went that low lol. My wife gets too cold if we have ours set below 72)

-Your profile says you're in Chicago. A quick google search tells me that in Chicago, tenants have the right to air conditioning when it gets hot enough outside. I'd do some more research or a talk with an attorney, but sounds like it doesn't matter what's outlined in the lease.

-$3500 is a very reasonable price to replace a unit and lines. That same job would cost around $8000 where I live!

-Whether you do window units or replace the entire unit.. tough one. If you really believe this tenant abused your old unit, might be a good plan to get them a couple of used window units to continue to abuse. Then when their lease is up, reassess.

Soniel Estime · Answer

@Nathan Gesner

Hi Nathan, great point, I’m in a bit of a weird situation. I’m house hacking but I have a PM bc my previous job had me traveling 90% of the time. I had a technician check the AC last year and refill it RE Freon and check for leaks. Typically the PMs prices are higher and I thought it might have been a leak issue so I had the same guy come out thinking if it was a leak he would have to fix it at no expense or low cost bc he was supposed to check for that during the first visit. I appreciate your input and def gave me a lot to think about!

Alf Penland · Answer

If your AC unit needed to be refilled with freon last year, then it had a leak.  Where was the leak and what repair was done to keep it from leaking out again?  A unit low on freon won't cycle properly and won't cool no matter how low the thermostat is set, so it would tough to blame a tenant for this.

I agree with the poster above, $3,500 is a great price for a unit replacement...

Bill B. · Answer

It “sounds” like the ac wasn’t working. The tenant should have called after 1-2 days of the ac not working. I can’t believe your tenants are so great they would go for weeks without AC. But it also sounds like the repair would have been exactly the same except the technician couldn’t blame it on the tenants.

Next time be careful you don’t let the technicians talk you in to repairing really old systems. I’ve fallen for the Same thing. Except instead of getting an extra year out of it like you did. They’re replacing the system a month or two later. You just flushed that $500 or $1,000 repair “out the window”. Worst case you’re replacing the unit 1-2 years earlier than you planned to anyway.

Nathan Gesner · Answer

1. Why are you trying to figure this out when you have a Property Manager? They are paid to figure these things out for you. The fact that you are asking this question indicates your PM isn't helping you out with an answer.

2. It doesn't matter if you advertised cental A/C or not. Your advertisement probably didn't include a lot of features like the roof or windows. The Tenant moved in with a functional A/C system, so they have a right to expect it to function for the term of the lease.

3. Yes, you have a case for charging the Tenant if they abused the system. However, you can't legally charge them for a brand new system because yours was already old. You can charge them a depreciated value. If your existing system exceeded it's life expectancy, I would consider charging your tenant for the technician's visit, then cover the cost of replacement yourself. I would also consider including some rules about proper operation to prevent tenants from abusing the new system and giving you some teeth if they break the new one.

Scott Mac · Answer

Renters dialed the thermostat down to 45 degrees (calling for cold) but cold would not happen.....sometimes the A/C coils inside the unit freeze up into a solid block of ice due to the humidity in the air.

Running the unit with a dirty filter might (maybe could) lead to this, but sometimes it just happens. Then the A/C just blows room temp despite the thermostat being dialed way down (calling for cold).

I am taking central A/C here, not window or sleeve units.

Here is what an A/C Tech says about it... https://www.youtube.com/watch?v=2Kdyiv_ziFw

Ned J. · Answer

AC is a closed system..... Freon doesn't just "disappear".... if its low, the Freon went somewhere. Some leaks are much harder to find than other.

Sounds like the AC wasn't working to begin with..... tenant: not blowing cold? I'll just turn it lower"... still not cold?.... turn it lower..... not how it works. And turning your AC down to 60 doesn't make the house get cooler any faster either. It either blows cold to specs and gets to the temp you set it at over a time period (based on inside temp, outside temp, system efficiency, insulation etc etc etc) or it doesn't. If you set it to 75 and it never gets there, setting to 55 won't change that.... not how it works. AC doesn't work like a gas peddle.

Going to be hard to pin this on the tenant.....and you can only charge a depreciated price for replacement. i.e if the tenant negligence greatly accelerated the unit to reach the end of his average lifespan, then you can charge for that accelerated period..... not the entire life span and a full replacement cost.

Soniel Estime · Answer

@John Warren

Hi John,

The tenants are in a C- D+ area and they pay $1300 in rent. They pay on time and besides them being a bit demanding, they are good tenants. Most other buildings have AC units but it’s an older building so the AC was an added perk.

Soniel Estime · Answer

@Scott E.

Hey Scott,

The tenants told me and the technician that they “set the thermostat to 45 and 55 for a few weeks and it’s not getting any colder” my property manager said if I had gotten pictures I could have charged it back to the tenants. At this point it would be a he said she said situation so I figured I’d either replace the unit or get get them window units. They are not bad tenants, they are a little demanding but other then that they pay on time.

John Warren · Answer

@Soniel Estime what type of areas is this property in? Most of our buildings do not come with central AC, and we let tenants get window units. AC is something we don't need all that much here, and central AC is expensive to maintain... unless your rents are high enough to support it.

What would you do - Tenant broke AC

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