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rental reduction compensation

IMSTOCK

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Jan 22, 2011
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Hello,



I have always spent top dollar bringing my units up to high quality standards and used the mindset of tenants are my customers.

That being said, I have a a multi unit where the boiler has taken a crap and because of the extreme cold weather we have been having locally, the soonest a repair technician can come to have a look is February 17th. In the meantime I have provided tenants with whatever they need for electric space heaters and also mentioned if they felt the need they can boost up the heat by having the oven on and open.



I guess one of the tenants has gotten it in the heads of the others that they require compensation for the fact that the boiler doesnt work and "heat&hydro" are included in the rent.



So I mentioned to all of them that yes exactly and I am still providing them with heat and many places dont even have a boiler or furnace and solely use electric baseboard style heating. I also mentioned that yes exactly, hydro is included in the rent and if they were in fact paying for their own hydro and I felt like I was costing them money by having to temporarily use electric heaters until the boiler is repaired, then I would certainly want to recompensate them for their added costs. However they have no added costs but my costs will now be much higher due to all the heavy electric heater usage.



I feel like it is just someone trying to take a shot at getting some money out of me. That being said, the addage being "the customer is always right" and tenants being our customers, I would really like some of your opinions.



Thanks all in advance



J
 

Thomas Beyer

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Under most provincial landlord-tenant laws you as a landlord must provide a minimum temperature for tenants, so you do the right thing.



Get the boiler fixed ASAP. There are many firms that can do that.



Try to get hydro sub-metered, and billed directly for new tenants. I assume this is in Ontario. Isn't this the law now ?
 

IMSTOCK

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Thank you Thomas. Yes this is in Ontario.



I dont recall this being the law here. I have one hydro meter on the building and therefor I include hydro in the rents. I have no problem paying more in hydro to keep the temperature comfortable until it can be repaired, but I certainly didnt believe I should also be providing some sort of rebate for having to use a different source to provide this heat, glad you agree.
 

RedlineBrett

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No way you should be waiting until Feb 17th to have your boiler fixed. Surely there must be plumbing / mechanical contractors local to you that have a faster response time than that.



Problems like this is what gets your building condemned. I would not want to be you if a tenant went to the fire department or healthboard or the evening news.



Letting huge issues like this fester are also what will clear out your building.



You should have this thing fixed yesterday, especially if it's a nice building. Or buy a new boiler, and get it in there. Cost of doing business!
 

KevinWeiler

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February 17[sup]th[/sup] is an EXTREMELY long time to wait for a boiler repair. Is this in small town Ontario? Is there only one company that handles these types of repairs where the building is located? IF YES, hire a contractor from the neighboring town or city to fix ASAP.



Relationships are key, especially with your contractors! I know for any of the buildings I manage, especially MF buildings, I have several Plumbing & Heating companies I could call out in the middle of night on New Years and they would come ` we would pay through our teeth for it ` but they would still come. As Brett mentioned, the cost of doing business.



I would suggest stressing the importance of this repair to your contractor and if they can`t meet the demands of your type of business ` find another one who can.



Good luck!
 

invst4profit

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In regards to the length of time taken to repair the boiler make sure the contractor provides you with written documentation justifying the delay in repairs.

Are the tenants able to adequately heat their apartments with the equipment you have provided ?



Assuming you have proof of the reasoning for the delay in repairs, the tenants have sufficient heat and it is not costing them any additional expense then they have no justification to request a rebate. If they take you to the board just be prepared to justify and explain the circumstances with documentation to support your case.

The board very rarely grants rebates of much more than possibly 10% and only when the landlord has truly been negligent.In my opinion it is always best to simply wait and see what the tenant is prepared to do rather than panic and over react to a threat.



Also if you find out who the trouble maker is you may want to keep and eye on them afterwards with the intent of evicting if the opportunity presents itself. You have not heard the last from that tenant especially if they end up taking you to the board.
 

IMSTOCK

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Thanks for all of your replies.



Yes I am calling around doing everything short of offering my first born child to have this boiler serviced or replaced. In the meantime I dont see my building becomming condemned because it is providing an electric heat source rather than a boiler or furnace. I have other units that rely solely on electric heat. It looks as though I may have found someone able to come by on monday which I am pleased with.





I have since been in all units and they are all warmer than my own current home. I have asked them if they needed any added heaters and they all say that they have adequate heat/heaters. So the issue to me is just someone looking for a rent reduction and I am concerned about setting a bad precent where everytime a lightbult goes out someone is looking for a rent reduction.
 

Thomas Beyer

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[quote user=IMSTOCK] rent reduction.
No need to do that.



What is the rent you're getting ?
 

Pheenix

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Excellent set of replies.



To help cover off any application to the board, go 'inspect' the units for the minimum heat levels (as provincially mandated). Every thermostat has a thermometer as well, record the time and date along with the temperature. Ideally spread your inspection times out across the day across various units. If the delay is as long as indicated, do it several times during the period, especially if there are some really cold days.



This may circumvent the complaints, in and of itself.



Also consider and check for over loaded electrical circuits, your building was not designed or wired for the sustained loads required for use of these other electrical devices as primary heating sources.



As an aside - is the delay caused by 'replacing' the boiler or has an 'alternative' been offered, that alone may make a difference in time if waiting for the exact same equipment.
 

housingrental

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Good posts to add to it:



The city your in might have minimum temperature requirement by-law that is higher than any provincial requirements



Check all rooms in all apartments to ensure you are meeting your legal obligation



Document this in detail with words and photo's and follow up letters and emails to the tenants complaining



Check with your insurer on how long you are allowed to use plug in baseboard heaters - they might have a timeline and/or require a premium payment from you for this for your insurance to be valid



A three week delay to fix a boiler is a long time - I can get you in an HVAC tech as soon as tomorrow if you are willing to pay a driving premium if you are anywhere near the GTA - Go through your yellow pages, look online to see who is registered in your area, contact the TSA, contact your local apartment managers association - you will likely find someone willing to get this done sooner



If you did not provide heat for an extended period of time it would be reasonable to provide your residents with a rent abatement for that period
 
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