What would you do?

Question

I found tenants for a house one of my owners recently bought.  It included washer/dryer and central A/C.  The previous owner moved out, and he took the washer, dryer, and central A/C with him.  The owner is apparently intimidated by him and she refuses to even ask him to bring the stuff back, let alone take him to court.  So I now have two great tenants that are feeling slighted, and rightly so.

What would you do?  I don't have any comparable units to rent them.  The owner has been a great client for many years and I don't want to lose her.  The tenants are looking to me for a solution and I'm certain this is reflecting poorly on my company, even though it's not my fault.

Suggestions?

Just Don · Answer

the problem with letting tenants use window air is
          
          1. the tenants dont care and tip it towards house,water runs down siding and window,instant rot.
          
          2. tenant takes out screen or storm to install and lose it.  Cant get new ones (just screens) so all new window.
          
          3. if older wiring it can overload it and cause severe issues.
          
          4 central air was NOT expected 30-40 years ago in a rental,,now it sure is.
          
          5.utility bills are so high with windows and so low with central it will make good tenants move or stay as case may be
          
          In THIS case the previous owner should not take the c/a because its a fixture,,,did he take the front door too?
          
          I dont see how having a small conversation with previous owner on real estate do's and donts would hurt your biz,,unless he is a client also.  Your new tenants are correct to be miffed, they bought washer and dryer which was right thing to do.  Now get them a central air thru previous owner or present one.  Did he tear the A-coil out too???  Maybe it was stolen.  Only you can find out.

Did you broker the sale? If so its your job to get him to return c/a. Or contact the broker who did.
          
   option B-       Find a decent used one for cheap and get it done.  Or I see them on net for not very much.  Have your handyman set it up and call your regular repair guy to charge it and look for leaks.  looks like $1,000-$1,200 goes a long way.
          
           ask to get a competitive bids,,,lots of difference between several bids.
          
          Ask the new owner what the value of the house is WITHOUT central air in an area where it is EXPECTED.  They used to cook on a cob and wood stove in old days too,,,would they expect people to today???

Jon Holdman · Answer

Unless the washer and dryer where explicitly specified to stay, the previous owner could (and did, apparently) take them.  Those are not typically included with a property.  So, unless they were specified to stay in the sales contract, it should have been assumed they would not be there.

Central air (or, a water heater) is a different story.  However, its not your place to deal with getting this from the former owner.  I would think that if the listing said "central air", the new owner would have a case against the former owner.

I'll say again that if the new owner led you to believe these items were included with the rental, and you represented to the new tenants that they were included, they should be replaced.  If the owner refuses, you need to have a frank discussion about the situation.  Perhaps a rent discount is in order.  Frankly, if I had rented a house that was supposed to include central air, and it didn't, I'd move and take you to court if you tried to withhold anything or charge me for extra rent.  Replacing these items would be, maybe $4000.  Now, I'm with Mike that I don't include washers and dryers, but it that's what was promised you have to make good.

Maybe you just have to treat this as a repair.  Replace the items at your expense, then deduct it from your payments to the owner.  If you're managing "quite a few units", that shouldn't take long.

Jon Holdman · Answer

Were you the property manager for this previous tenant?  If so, I'd think its your job to deal with the tenant, including going after them for the money for these items.  If not, how do you know those items belonged with the house and not the previous tenant.

Now, I'd buy that perhaps the washer & dryer belonged to the previous tenant.  But the AC?  No way.  Maybe the tenant put those in and though they could take them.

If you've just taken over this unit at the start of this new tenant, and the owner told you a washer, dryer, and central AC were included, and it turns out they're not, you have a beef with the owner.  He's misrepresented the property, and you misrepresented it to the tenants and now the tenants are unhappy.  Fire the owner and let him or her directly deal with the unhappy tenants.

Ali Samana · Answer

Wow, its a good thing you are stepping in, or he would come in and remove doors, windows and dry wall next week.

Once the property has been closed on I am pretty sure what he did is considered theft.

Nathan Gesner · Answer

Update: I went on vacation for a week.  While I was gone, the previous owner/tenant showed up and removed the mail box and an electric fence.  Current owner refuses to charge him or seek compensation.

I'm meeting them for lunch today and will iron this out.  Ridiculous!

Bill Gulley · Answer

If the prior owner took it after the closing yes. sorry for that mis-read. Prior to closing may consitute fraud. I would contact the prosecutors' office and see if they would go forward with it. Someone really needs to talk to that current owner!! IMO

Jon Holdman · Answer

It wasn't a prior tenant, Bill, but a prior owner.  Could Nathan still get the authorities involved without the new owner consenting?

Bill Gulley · Answer

Hi, if you can prove the tenant took the equipment the prosecutor in that county will likely press charges for grand theft without the owner being involved. If I could prove it, I'd turn it over to the authorities and let them talk to the owner. If she can't follow through on such circumsatnces, she needs to sell the property and get into something that makes her smile everyday. Good luck, Bill

Nathan Gesner · Answer

The place rents for $1250 a month.  The couple living in it are young professionals and excellent tenants.

The guy living in it was the prior owner.  He sold the home to the ranch owner who then asked us to manage it once he moved out.  There is nothing in the sales contract excluding the items from the sale of the home, therefore they are contractually included.  The current owner has an excellent case for getting everything back but just wants to wash her hands of it.  So we're stuck.

The tenants signed a contract for a complete home, which included central A/C and washer/dryer when they viewed it.  What they agreed to rent is not what they got.  In my mind, it's equivalent to renting a house and finding out the previous owner took the furnace or hot-water heater.

I don't have a comparable unit and the tenants wouldn't want to move again, anyway.  If this were the only home we managed for the owner, I would dump her immediately.  However, we manage quite a few units for her and she's always been a good, responsive owner in the past.  This is making us look bad to the tenants, but I feel my hands are tied!

Michael Rossi · Answer

How much does this place rent for?  If it is a typical low or lower-middle income rental, then I would suggest to the owner that it is CRAZY to provide either air conditioning or a washer/dryer in such a rental for the obvious reason!  Let the tenants provide window air conditioners and their own washer/dryer.

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