Both landlords and tenants like it when a rental property has the full complement of top-notch HVAC systems. Utilities like heating are mandatory in a rental property because it is part of the property owner’s Implied Warranty of Habitability. But although air conditioning is not always mandated, landlords know that installing them would make the rental more attractive to tenants.
On the part of tenants, a rental with functioning air conditioning (plus other HVAC services), means they will be more comfortable and do not have to spend money to install their own systems. It benefits the landlord and tenant when a rental property has sufficient and up-to-date HVAC systems.
But there is one little problem; HVAC systems need to be maintained. Who should own the responsibility for maintaining the HVAC systems in a rental property? Should it be the landlord who owns the HVAC systems? Or should it be the tenant who uses the HVAC systems and has the ability to damage them?
This is one of the many areas where landlords have disputes with tenants. Resolving this issue at the start of the lease and considering the landlord and tenant rights is good for maintaining a good landlord-tenant relationship. What are the different options landlords and tenants have for maintaining the HVAC systems in a rental property?
Strategies for HVAC maintenance in rental properties
There are three possible ways landlords and tenants can approach HVAC service/maintenance. No one method is best; each has its pros and cons. The best method for a rental will depend on the kind of property (residential or commercial, single-family, or multi-family). It will also depend on the type of HVAC equipment installed in the building.
Before explaining the different ways to approach HVAC service and maintenance in a rental property, here are some general guidelines to be aware of. These will apply regardless of which maintenance strategy is adopted for the property.
- How many tenants does the system serve?
In a commercial building and multi-family complex, a single HVAC system may serve multiple tenants. In that situation, expecting tenants to be responsible for HVAC service and maintenance could create a messy situation.
- Who installed the system?
The rule of thumb is: if the tenant installed the system, the tenant will be responsible for its maintenance. But, if the landlord installed the HVAC, even if he or she is responsible for its maintenance, the owner may share the financial responsibility with the tenants.
- What caused the damage?
In every case where the HVAC system is damaged by something the tenant did or failed to do, the tenant is financially responsible for fixing the problem. Damage that would not have occurred without a tenant’s action will be paid for by the tenant. Conversely, all damage that is caused by natural wear and tear is the landlord’s responsibility.
Models for HVAC service and maintenance in a rental property
- Shared responsibility
In this model, the landlord and the tenant share responsibilities for maintaining the HVAC systems. The property owner might assume responsibility for parts replacement, while the tenant takes care of repairs and maintenance.
Alternatively, the tenant may only be responsible for minor issues, such as filter or battery replacements and duct cleaning, while everything else is done by the owner.
Yet another way to do this is for the landlord to set an annual cap on what a tenant spends on HVAC maintenance. As soon as this amount is reached, the landlord must take over the role of maintaining the HVAC.
Sharing responsibility for HVAC maintenance is the most commonly used model because it gives both parties a measure of control. In order for this model to work through, the landlord must be sure the tenants are maintaining the systems to the required standard.
- The landlord takes full responsibility
From a tenant’s point of view, this is the most convenient way to maintain the HVAC systems. With this method, tenants have no business with HVAC service or maintenance. The landlord handles everything and charges the tenants a fee for this service. How much the landlord charges will depend on a lot of factors.
This is usually the preferred method in multi-family buildings and in commercial buildings where there are several tenants with different HVAC needs. The challenge with this method is it makes a lot of demand on the landlord’s time and leaves tenants without any control.
- Tenant takes full responsibility
This is the least used model for rental property HVAC maintenance. Unless the HVAC system is the property of the tenant, this model could cause problems for the landlord. That is because a tenant could choose to overlook important issues if they think it is expensive or if the tenant is nearing the end of their tenancy.
However, if it’s more convenient for both landlord tenants to do maintenance and service or a tenant has very unique HVAC requirements, this could be the best way to maintain the HVAC. But in that case, the tenant would usually have to install their own HVAC system.
