General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 9 years ago, 06/16/2015
Should I give $ back to tenant for delay in fixing ac unit?
#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
- 13,508
- Votes |
- 23,418
- Posts
#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
Yes you should. Never cared for home warranties, other than perhaps a somewhat delusional advantage perceived by the buyers.
I think it depends on the weather. Most of the spring in KC has been very moderate and rainy, but recently it's been close to 100 degrees with the heat index. If they didn't have an AC when it was that hot, I think it's definitely appropriate to provide concession. If they've been a good tenant, I would consider covering the cost of the AC they bought (within reason).
I don't use warranties in my rentals, but I've been tempted to endlessly shop around or fix things myself to save money. Doing that can create major delays. I've abandoned that approach simply to offer better customer service for my tenants. If the issue affects the livability or is a major inconvenience for the tenant, it should be handled ASAP. It's not their concern "why" the repair is taking so long, just as it's not generally my concern "why" the rent is late.
It has been extremely hot in MO lately. They are definitely due compensation. I don't know that 100 would cover it either. As landlords we are required to provide safe housing.
To help maintain good tenant owner relations, you probably should reimburse her for the cost of the window unit and maybe a little extra.
I can write pages about what is wrong with home warranty companies.
The main purpose of a home warranty is when you are selling your property to a buyer, you give them a home warranty and that helps shift some of the liability off of you when the AC breaks down two days after closing.
Home warranties are notoriously terrible at fixing repair items timely. Many times home warranty companies will just try to patch patch patch instead of replacing a needed item.
When a tenant is paying rent to the landlord they expect a certain level of service and for the most part, this does not happen when home warranty companies are involved.
Check out the article below
http://www.today.com/money/home-warranties-dont-al...
The number one reason that most tenants move is poor customer service in regards to repairs from the landlord.
Yes, definitely compensate your tenants. In addition to the cost of the window unit, I would get them a gift certificate to Baskin Robbins or Coldstone Creamery or other place for something cold. It won't cost you much, and it will really show your concern and empathy for what they went through.
I'd say the main purpose of a home warranty is to keep the buyer from complaining to a Realtor after buying a house that experiences a problem. That's why the Realtors have built home warranties into the sales process.
I don't disagree with compensating your tenant for the loss of AC, but let's not claim this is a safety issue. I grew up in a St. Louis suburb when most of homes did not have air-conditioning. Most of them added it later. Then it was a nice luxury, but people were not dying for lack of air-conditioning.
So, yeah, it was hot. It's hot in a lot of places. People lived without air-conditioning for thousands of years. People can turn on fans. It's a safety issue only for people who like to be victims.
Yes, a two-week repair is unreasonable, in my opinion. It's my opinion, you should have purchased a window unit for them after a few days. Think in terms of being in their shoes. How would you feel? What would you think would be fair, if you were the one in that hot house and a landlord delaying and delaying?
I honestly think you should abate their rent for every day they were without A/C. The window unit only gave them one room to huddle in together. I'm betting the window unit cost them less than $200?
If you want these tenants to stay, I think you need to think in terms of what would make you forgiving enough over this, that they stop planning on moving at the end of their lease. So, what would that be?
For me, if you said you were so sorry for the delay, and to make it up to me you were going to give me a rent credit for the full 2 weeks I was without A/C, that would change my perception of you. Along with an apology about how long it took to get repaired, and telling me that you value me as a tenant and hoped I'd stay a long time.
And, then also offer to buy the window A/C unit, too.
They should have had A/C within 3 days, and should not have had to be out of pocket for a window unit, just so they could huddle in one room together.
Honestly, that's just unforgivable. And offering them $100 is a slap in the face, as is paying for an A/C unit they didn't want to spend money on just so they could huddle in one room.
You could be cheap, and wave goodbye to them at the end of the lease. Think of the turnover costs. Or you could keep happy tenants.
And you could try sending a bill to the warranty people for the rent abatement and A/C unit you just bought, or better yet, sue them in small claims court. At minimum, you can write off the loss, right?
You will have to make your own determination as what would be appropriate to do in this case taking into consideration the above posts.
My thought is : When you realized this wasn't going to be a quick fix why did you deal with allowing multiple delays in the process knowing it was going to be a while..... Instead of just calling a local HVAC company to resolve the issue within hours if not one full day???
I know it's a home warranty and yes people did live without AC etc etc, but 2 weeks is not acceptable in this case. I assume the home was rented with central air as part of the expectation of the living environment and part of what is paid for via rent each month. So to expect working AC is reasonable combined with being in a major metro area there is no reason the part couldn't have been replaced within literally hours of a diagnosis......
Lesson learned I guess, happens to all of us along the way. But your home warranty situation just cost you a pretty penny and the end doesn't justify the means in this case.
Even in a worse scenario the entire unit could've been changed out well in advance of this part being installed.... Just food for thought.
During the month of May the maximum temperature in KC was 83. The temperature exceeded 80 on only 6 days with all other days below this.
In my estimation this is not unbearable and barely uncomfortable. Huddling in one room to stay cool sounds pretty dramatic. It is not close to being unforgivable as @Account Closed indicates. (I admire her advice but on this I feel she is off the mark.) Also, two weeks rent abatement is WAY too much of a concession.
Reimburse for the window unit as long as it is under $200, maybe a $100 cut off next month's rent.
Get rid of the warranty company.
unbelievable, second time today I agree with Sue ;)
I think Sue is right, it is unforgivable. You rented an apartment with air conditioning, that is part of your deal, if air conditioning is not available then yes, you do owe a couple of hundred bucks in compensation.
The fact they bought their own window unit is also a disgrace. That needs to be refunded immediately,
We had a tenant whose ac broke on a Friday night, they suffered through till Monday before phoning. We actually told them off nicely, that they should have called Friday night, and we'd have a window unit there in 15 minutes, not sweat the weekend out in 90F house without telling us!
The fact that people 50 years lived without ac is immaterial. The unit was rented with working ac. Its part of the deal.
I agree with Kelly. And please remember that sometimes it's not just heat but also humidity that makes it unbearable.
@Sara Bolliger lots of advice on this thread. This is the reason I don't use nor recommend investors use any home warranty company. Unfortunately this type of thing always happens, delay, delay, delay, and then the landlord is left looking like the culprit. That is the only unforgivable thing in my opinion. Sounds like you are a responsible landlord or at least making the effort.
First thing I would ask is whether or not the tenant is requesting some type of compensation? I don't believe you mentioned that specifically. If so how much is the tenant requesting? If not requesting anything your offer is out of the kindness of your heart, I don't think it is a requirement. Would I compensate a tenant for a 2 week delay, yes I would. I would not buy their window AC unit as it is theirs to keep and take. I would offer a rent consideration for a 2 week delay, and I think your $100 thought is sufficient.
Second thing is I certainly disagree this is a safety issue unless the tenant or someone living in the home has an underlying health problem such as being on oxygen. I live in Kansas City. It has only be "hot" a few days so far this summer, actually raining nearly every day. The humidity has been high as a result so yes it can be uncomfortable but unsafe? I don't believe so.
Third if you apologize make sure you are apologizing for the home warranty company not you. You didn't do anything wrong other than rely on a home warranty company. Again, I suggest revisiting that relationship in the future especially when the annual renewal comes do.
Fourth if you have problems that need solved quickly in Kansas City hereforward just post them on the BP forum and I am sure other investors who are local to KC such as myself can assist you.
Good luck!
I'm sorry, but you don't apologize for the home warranty company, that's called passing the buck.
You have the contract with the tenant, the apology is yours to make. Blaming others make you look weak and slimey. You took money from the tenant, the apology is yours to make.
And yes, you do offer to buy the window unit from the tenant because it's highly embarrassing that they had to buy it in the first place! You have failed to perform as your contract, it's now to you to do the decent thing. And having a spare window unit in stock is no bad thing either.
Gees, and people wonder why we have states that are tenant friendly?
I would buy the window unit at their full cost from them. And under offer them a rent reduction or an upgrade on an appliance or fixture of their choice within a certain budget.
No Under offer. Stupid phone.
I am honestly bewildered (and a little disgusted) by people saying things like "it wasn't that hot!"
It doesn't matter. Functioning AC was part of the deal. If you agree to pay me $100 a month to mow your lawn once a week, and I don't mow it for a couple weeks, will you still be paying me $100? No, of course not.
Buy the window unit AND make a rent concession.
I had been a land lord for about 10 minutes and the AC went out, I had a home warranty so I called them up. The vendor showed fairly quickly, but after delays, delays and more delays we finally got an answer that it would take 2 weeks to get the parts. I called the warranty company, I think it was 2-10, they said they could have the parts in 2 days. Turns out that the vendor/AC company went through their own parts source rather than the warranty company like they are supposed to. So, I called another vendor, he said he could have a new unit installed the next day. So, 1 day & $3200 later, it was installed.
Since it was such a run around, and even though I had been busting my hump trying to get this think taken care, my property manager said that we were on the long side of what a judge would consider "reasonable time" and would let them out of the lease. Since they were threatening. So, I gave them 2 weeks free lease for the two weeks that they had no AC.
Short version, don't bother with home warranty companies for a rental. They seem to allow things to drag on to the point where you would rather pay full price to get it fixed your self.
Originally posted by @James DeRoest:
unbelievable, second time today I agree with Sue ;)
LOL, you're killing me :-)