Complex HVAC system change - Landlord Forum thread 324597

Complex HVAC system change by Susan (VA) on September 17, 2014 @10:41

My rental is in a complex that is 50 years old and has the original central boiler system that heats and cools the complex with water. The board/homeowners voted/approved to replace the outdated/aged system with individual heat pumps. This will be done within 6 months to a year, and I have informed my tenant of the upcoming change. Right now, his rent includes heat/cool because it is centralized; he is responsible for the electricity. He asked me if I would be paying his heat/cool when the change took place, and I responded no, because he is responsible for the electric. In the ad, I stated that electric runs about $50 a month. He has told me that his bills runs $28 a month. With the change, his bill may go to $50a month, though he is very frugal with the utilities. My question is, can I be held liable for an increased electric bill, due to a complex change that is out of my control, even though the lease states he is responsible for the electricity? The flip side of this is, I am eating a brand new fan coil unit that I had installed in March, because the board failed to inform me that they were looking at a complex change-over. Thanks for your input.

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Re: Complex HVAC system change by Bill on September 17, 2014 @12:42	[ Reply ]

Explain to your tenant that you do not expect the electric bill to be more than the approximate estimate of $50 that you advertised. Maybe you could salve it over by promising not to raise the rent for the next renewal until the tenant's experience tells him what the actual bill will be.

Re: Complex HVAC system change by Garry (Iowa) on September 17, 2014 @14:15	[ Reply ]

Just write a letter to your T ,stating exactly what you told him. His "rent" amount he pays to you will not go up 1 dime. But, his "increase" in "rent" will be in the form of paying the whole electric bill each month. And you will get your "increase" in rent, by not having to pay the heating/cooling amounts that you were paying out of his rent check to you each month. Do not try to guesstimate any figures at all. He might not like it, but NOBODY likes to pay more on the expense side, but we all like it when we get increases in our incomes.

Re: Complex HVAC system change by B on September 17, 2014 @19:25	[ Reply ]

You might compromise if the new system is installed before the lease ends by compensating the difference in electrical usage for only that time between the new installation and the end of lease. Than have the new lease reflect the new heat/cool system. You can not change the terms of your lease without the tenants consent. Redo your ad, do not include the $50 electrical amount. Question? How is hot water provided?

Re: Complex HVAC system change

Re: Complex HVAC system change by MrDan (Georgia) on September 18, 2014 @16:08	[ Reply ]

While there is not much you can do with the current lease, if the lease is renewing or you are going to enter into a new lease with the current or new tenant, there is wording which can be placed in the lease agreement which could address the situation and help to protect your financial interest. Here is some sample wording I came across in a Florida lease, you may want in your new leases: In the event a condominium association or homeowner's association is currently providing any services to the unit such as cable, satellite TV, alarm monitoring, internet, water, sewer, trash, guarded security gate or other services, and the association decides these services will no longer be provided, Tenant agrees and understands that Landlord and/or Agent shall not be required to replace, provide or pay for these removed services for Tenant. Tenant may opt to pay for non-essential services, but shall be required to pay for essential services including but not limited to water, sewer and trash, if the association no longer provides these services. The discontinuation of any such services by the association shall not be construed as a prohibited practice by Landlord or Agent, nor shall it constitute a default under the lease. The failure of Tenant to retain and pay for essential services upon notice and demand by the Landlord or Agent shall constitute a material breach of the lease.