I think the initial issue with the landlord finding out was surprise and discomfort with his tenants making money.

Don't let a little money, your pride, the discomfort of trying something new or a fear of failing prevent your success!

I believed in my plan and knew the short term discomfort would be worth it. 

You CAN overcome your discomfort, (if any), with all of these issues, but is it worth it for you to do so?  

Sometimes they express discomfort with the income question, and if so, I rephrase it as a yes/no.

You traded rent money for discomfort, and now the renter wants to haggle you for the amount.If it were mine I would have not traded discomfort for money, I want the money, and want to provide a "pleasant" Rental Experience as much as possible.Given that, I would have had a working window A/C installed as soon as possible after learning that the the existing one could not be fixed within a few hours.I would have picked one up from Home Depot that was less than 15 amps and provided a lot of cooling power--just one--but one that worked.As far as the repair, I would have updated the customer (renter) on the repair status as things changed.I would not have cut the rent--even if it was the cheaper way to go.

He overcame the discomfort by adopting a "cocktail mindset" before advancing to the podium.

@Sam Leon - of course before terminating tenancy, a notice to quit the offending behavior would be required.Here are some ideas for you to consider:--------------------->% cut here %<---------------------Tenant desires to keep the following described pet in the dwelling they occupy under the Rental Agreement referred to above.Type of Animal: ________ Breed: ________Age: ________Gender: ________Name: ________Weight: ________Color / Markings: ________Tenant has completed a Pet Application and has been granted permission by Landlord to keep the pet specified and Tenant agrees to the following terms and conditions.1) Tenant agrees that Tenant is solely responsible for the maintenance of the above described pet, and agrees to keep the pet under control at all times.2) Tenant agrees to keep Tenant’s pet restrained when it is outside Tenant’s dwelling.3) Tenant agrees to adhere to local ordinances, including leash and licensing requirements.4) Tenant agrees not to leave Tenant’s pet unattended for unreasonable periods.5) Tenant agrees to clean up after Tenant’s pet and to dispose of the pet's waste properly and quickly.6) Tenant agrees not to leave food or water for Tenant’s pet or any other animal outside Tenant’s dwelling where it may attract other animals.7) Tenant agrees to keep Tenant’s pet from being unnecessarily noisy or aggressive and causing any annoyance or discomfort to others, and agrees to immediately remedy any complaints made through the Landlord / Manager / Owner upon Tenant being informed of these complaints.8) Tenant agrees to provide Tenant’s pet with an identification tag that the pet will wear at all times while on the premises, except when medical well-being of the pet indicates that it is necessary to leave it off of the pet.9) Tenant agrees not to breed or allow the pet to reproduce, but if this should occur, the pet’s offspring will be placed within twelve weeks of birth.10) Tenant agrees to immediately pay for any damage, loss, or expense caused by their pet, and in addition, they will add $ 0 (zero) to their security/cleaning deposit, which may be used for cleaning, repairs or delinquent rent when tenant vacate.

Shouldn't be a nuisance or discomfort to other Tenants and neighbors.4.

Progress is on the other side of discomfort.