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General Landlording & Rental Properties

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Jack B.
  • Rental Property Investor
  • Seattle, WA
1,044
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1,885
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Should I let my tenant pay for this AC repair?

Jack B.
  • Rental Property Investor
  • Seattle, WA
Posted Jul 1 2024, 18:14

I told them when they moved in the hot tub and AC were luxury items that came with the house, but if they break I would not be repairing or replacing them. I can't recoup the cost of a 15K hot tub replacement by raising rents really high. Only way I'd recoup it is if they stay forever and I have no turnover and so far that has not been the case.

The AC recently broke. It's a $60 part but every quote we got (tenant and I) was $3,500 give or take. It's like the head gasket on a car engine, the part is cheap, but the labor to disassemble everything and re-assemble is intensive. 

I declined to pay for the repairs. The tenant offered from the outset to pay for it, no issues. In fact they do this all the time for tree trimming, etc.

I have not raised their rent in the two years they have lived there and they intend to stay for a long time they said. I could raise their rents to market and recoup the cost of the repair, but honestly, of the rentals I own, only two have AC. Only one has a hot tub. I don't think it's worth paying for the repairs for a tax deduction, if the tenants want the AC they are welcome to pay for it themselves and they are. But I agreed not to raise their rent on them. Mind you, if I did, I'd recoup the cost of the AC repair in two years. BUT...the tenant has some weird expensive demand every year. Tree trimming, 3K. They paid for it the year before. I could raise rent but with them it seems I'd just forever be raising rents to just barely cover repairs. 

I feel like I made the right call in this case. Even the HVAC tech told them your landlord must be really nice if he's paying for AC repairs. It's a luxury, not a necessity like heat, at least here. And I told them when they moved in I'd not replace or repair the AC or hot tub if they broke. It just doesn't make sense to offer these amenities here. I can't really charge higher rent for them and the repairs outweigh any rent increases.

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