managment · Pittsburgh, PA · Member since 2015 · 14 posts · 1 vote
Here is the scenario.
Due to a defect in the furnace it may have caused the a/c to run while furnace running causing a high electric bill. Tenant is asking to reimburse electric costs.
If it proves the case, how would you handle it?
My lease has a clause that I am not responsible for defective equipment and everything is as-is. I want to be reasonable.
Couple of points.
- tenants are excellent. Want to keep them.
- I want to do the right thing within reason
- I don’t want to set a precedence to bad
practices.
- bill was $250 when it’s typically 150.
What would you do?
BP - Thank you in advance
Quality of tennat is irrelevant. Additionally you do not agree to anything out of a concern over losing a tenant.
If it were me in this situation where I believe there is a defect I would pay the tennat the $100 difference in heating cost if I am certain the additional costs is accurate.
Quality of tennat is irrelevant. Additionally you do not agree to anything out of a concern over losing a tenant.
If it were me in this situation where I believe there is a defect I would pay the tennat the $100 difference in heating cost if I am certain the additional costs is accurate.
Rental Property Investor · Carroll, IA · Member since 2017 · 63 posts · 53 votes
8y
If they were a good tenant and were there awhile I would fork over the $100. To me that is cheaper then haveing them move out because of it, then have to clean/paint/advertise plus loose out on a few weeks of rent.
managment · Pittsburgh, PA · Member since 2015 · 14 posts · 1 vote
8y
Thanks. I appreciate your responses and I agree.
Would you advice signing a simple agreement summarizing the issue and that payment? Just to have paper trail...
Property Manager · Grand Rapids, MI · Member since 2018 · 97 posts · 80 votes
8y
Hey Ron! That's tough when stuff like that happens, but I agree with the others, the best thing to do would be to cover the cost. I would just put a $100 credit on their account for your paper trail with a memo.
A tennat that would leave over a $100 cost is likely in the process of leaving regardless of whether you pay or not. Paying will have zero impact on whether good tenants stay or not. You never pay money to a tennat that you do not owe expecting it to in some way effect whether a tennat will stay or go. They will take the money and leave regardless.
managment · Pittsburgh, PA · Member since 2015 · 14 posts · 1 vote
8y
Thanks, Matthew.
It is a heat pump. Can you explain why it will not happen?
When the a/c was on the heater ran causing the place to heat up. So tenant think the reverse is true. I appreciate if you can explain
Catskill, NY · Member since 2018 · 636 posts · 668 votes
8y
I had a hot water heater leaking and it cost an additional $100 on the tenant’s electric bill. I took $100 off their rent the following month. Great tenants who weren’t going to leave either way, nor did they ask for reimbursement, but I just felt it was the right thing to do. And they were extremely appreciative.
It is a heat pump. Can you explain why it will not happen?
When the a/c was on the heater ran causing the place to heat up. So tenant think the reverse is true. I appreciate if you can explain
A heat pump has a reversing valve , it cools in one direction and heats in another . There is also emergency heat , straight resistance heat . That may have been on . But I believe there is a safety so it cant . But on a heat pump the unit cant run on heat and AC at the same time .
managment · Pittsburgh, PA · Member since 2015 · 14 posts · 1 vote
8y
I learned something new - Thank you, @MathewPaul
I also a golden rule to fellow investors, I learned this with this issue.
It’s best to tell repair techs only to share details with you. Since distorted facts can cause confusion like the one I am dealing with...