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A/C issue

23994

Inspired Forum Member
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Apr 30, 2015
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67
Hi,

Need your help urgently!

We have a up/down duplex rental property which has Central Air condition that was installed by the previous owner, we bought the property in March and has new tenant moved in at main floor in April...

we do not want to provide the A/C to tenants as we are paying all the utilities now although we have gone through the electric renovation to have hydro meters separated by end of April, our lease agreement with the tenant does Not mention the A/C...

last night the tenant asked to open the A/C and we told them if they want it, then they will pay the hydro cost of A/C because it is not included within the lease...

They are upset now and saying when they were showed up the house, they were told there is A/C and they need A/C etc...BTW: the showing was done by property manager at that time

what should we do now?

Please help!

Thanks,

Sue
 

23994

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the lease say nothing about A/C, but we pay the utilities, do we need to mention A/C specifically in lease or not as regular case?
 

Alvaro Sanchez

Ottawa-Gatineau Investor
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You could give the option to share the cost or cancel lease . Depending of what they decide them amend lease or have a new that specifies shared utilities for a/c.
 

23994

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thanks, that's exactly what is in my mind too...do you have idea how much the hydro cost of A/C is for regular 2 story detached house per month?
 

23994

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Also, for these duplex and we have separated hydro meters, can the A/C hydro cost being split between the separate hydro meters or not? I am told it can only be connected to One hydro meter, then how could we split the cost between the 2 units?
 

RE123RE

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Jan 22, 2016
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Hi,
Wow. Ill-advise above.
Your tenant is your client. You put a cake on their table. Then ask them not to touch unless they pay.
They might not stay for long now after how you made them feel.
Seems like you and the guy above do not yet appreciate the amazing value of very long term clients.
Everyone makes mistakes all the time, just learn from this for next time and you will do even better with your next clients.
Thanks
 

Thomas Beyer

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Several options:
a) find a mutually satisfactory compromise, say $40/month higher rent or $40 share of utilities
b) give it to them for free as a paying tenant should not be "fired" for a measly $40/month
c) turn off the A/C somehow and say "sorry it is broken and we ain't fixing it as it was not included anyway; it was a misunderstanding"

Not right or wrong solution here. It has to be seen in context of the overall rent paid and likelihood of re-rentability. Food for thought: If you rent for $1600/month, a vacancy of only one month pays for 40 months of this additional utility bill (as 40 month times $40 is $1600 .. or over 3 years)
 

Cory Sperle

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I would chose option B above. You could reduce the rent and then have them pay utilities, and if they don't go for that pay it, and recover as much as possible on a rent increase when the lease is up. Upstairs bedrooms on a two story home, the heat is sweltering. Is shutting off your own air conditioner an option?
 

23994

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Thanks for all the tips and help!

To make tenants happy, we decide to bear the cost by ourselves for this year but agreed they will set it at 24 degree when A/C is on...they seems happy now.

When this lease ends, we will discuss with them to pay hydro by themselves with the rent stays the same...do you guys think this is the rent increase and need to go through the Board for permission? we have the proof of what we have paid for the separating hydro meters.
 
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