HELP! Tenant demand compensation due to apartment's aircon not working

a long story cut short, it is a newly completed apartment for approx. a year and everything is still under warranty. Tenant's apartment's air con (which is part of the building as the entire building has the same system) not working for a few weeks and we've only been told only very recently (few days). We have since contacted the building strata/maintainance people as it is under warranty - and it has taken them a few weeks to fix that problem - entirely out of my control. Tenant then demand financial compensation because of that. BTW, this apartment is near CBD Sydney and it is not in a "cold climate area" of Australia.

What should I do? is the land lord liable for compensation in this case? BTW, we don't have landlord insurance. Would appreciate any official/unofficial advices. thanks!

Comments

        • -2

          @mrmarkau67:
          mrmark, you are trolling and very boring

    • ….

  • +1

    I've got a mate who's a solicitor whose mum is in a similar situation: tenant claiming losses for moldy clothes and other belongings because of a leaky bath.

    His mum I thought was reasonable giving compensation for the damaged goods, but they additionally demanded half price rent for the last 6 months and the future(!).

    Solicitor mate said tenant is law student and they sometimes want to get experience by taking things like this as far as possible.

  • Personally I would offer the tenant a amount of money like $300 range. Also note that you have made every possible action to get the problem fixed.

    If you take it to the tribunal it is a day out of office, and a day getting documents together, making a $300 offer would probably be wise in comparison to spending time in my eyes.

    I would also invest in landlord insurance.

    • I agree. I congratulate you both on being pragmatic and business-savy.

  • +1

    General comments:

    Too many bias bad response on landlord, thinking that other people are well off and should compensate more towards the tenant. Many had became landlord with huge sacrifices to be able on that position.

    I was a tenant before, I save up big time, sacrificing a lot on time, holidays, food to become what I am now, even sleep on old matress on floor from the very beginning owning my 1st house.

    From time to time my wife complains why we live worse than the tenant renting our house (because we owe the bank money). The tenants always go on tour, holidays, having good fine restaurant food once a week. When my kids want to buy unnecessary food (junk food, or not so urgent food), I have to ask them to wait till on special (just keep on looking at ozbargain to look for the person posted the word 'bargin' then you will have 'lose' change - copyright from other post - i just borrow it). How my in laws look at me being a tightarse (sorry tigharse , not referring to you). Spending the time on weekend doing planning how to save more where the tenant go to the park/ library and enjoy their family time.

    the kind of stress that I have been experiencing for the past 10 years that the tenant never had felt before. I just met an investeor, he suggested me to keep a full folder on all the bad things that happened being a landlord to feel appreciate how we landed on current position, it's not that we are lucky, it's how hard to work towards and earn it.

    • It is very hard to run any kind of small business profitably, and managing a rental property is no different.

      As you gradually pay off your mortgage and start to make more money from your hard work and sacrifice, you'll have the peace of mind of owning that property.

    • +2

      I am sorry having to say that but you sound miserable and your life does not sound great at all.
      However, no one is forcing you to buy a house, pay a huge amount of money to the bank in interest, and then skimp on life.
      Also, how do you know what the tenant has felt before as you put it? It seems to be there is a bit of self-pity mixed in.
      You could have chosen to be a tenant and life a better life than the one you describe. However, you wanted to have property which in the long run is an investment and has substance. The tenant spends all their money, yours is not spent but bound in the property, so yours is not lost.
      So, stop complaining. I do not think my eyes will tear up anytime soon.

      P.S.: Listen to your wife because if she divorces you she gets half the assets (half the house!). So instead of focusing on how to save even more money on weekends, take her our, spend some money on her - it will be worth it both emotionally and economically. ;-)

      • -1

        i'm not complaining, just that many being bias and think that being a landlord is so well off that drops from sky. yeah someone told me that it sounds miserable life, but better than being miserable when I need other people's help. I call it life.

        many work hard for it than compare to those spending all when in trouble goes to channel 7 or 9 asking for people's help or donations.

        I will definately listen to you on the half assets thing, you should try to lobbying the law changer to make the partner owned half the debt when divorce too.

        This always reminds me of someone (old man) standing on the street with a sign pointing out human rights pyramid ladder of
        1. Female
        2. Dogs or cats (animals)
        3. Have a guess ……. (my answer was male and I got it wrong - It was tree)

        so female landlord will have upper hand than animal landlord than a tree lastly male.

      • Oh you make me laugh Lysander - talk about tell it straight!! .hahaha I bet you are a brilliant lawyer…

    • Just because you've made sacrifices to get where you are and own a property doesn't allow you to not comply with your obligations as a landlord. People are paying you rent. If there's a problem with the property, it's your obligation to fix it. This was never about compensation from a tenant for some easy cash from a poor struggling landlord - it was about the fact that the tenant reported a problem with the property multiple times and nothing was done to fix it.

      • did I mentioned anything about ignoring the obligations?

        I did stated that's just a general comment not about the post topic.

      • +3

        He reported the problem with the wrong person.
        The gardener and the pool cleaner would also have been the wrong person to report it to.

        The person he should have reported it to is the managing agent (PM) and or the owner of the property (Lessor) not the building manager. (I am sure there was a contact in the lease they signed)
        The building manager has an obligation to the body corporate and owner, not the tenant and probably not even the property manager unless instructed that the PM is acting on the owners behalf.

  • +1

    Funny this, I am in exactly this situation… Moved into new property with split system in each room but we found that heating does not work. Pretty harsh for the cold Melbourne winter, feels like we have been camping.

    Notified rental agency straight away, have had people come check it on and off for 6 weeks now with no resolution. I have been pretty tame about the situation and have had plenty of contact with the Landlord but after 6 weeks its getting beyond a joke. Wasn't sure if I had grounds to negotiate a reduction for the rent during the period but it may be worth a shot. I might try and get the issue resolved first (looking like 2 months all up) then bring up the subject?

    We are not exactly paying a small amount, $550/week for a 2 bedroom place.

    • +1

      You'd definitely have to check out the rules in VIC. So far we've been speaking about NSW, which can have very different rules when it comes to tenancies.

    • There are different laws in different states and for some resolution there usually is some form of arbitration avenue so as to redirect issues away from busy courts for other matters.

      With that said, I would not wait to 'get the issue resolved first'. If you plan to apply for compensation, which you are legally and morally entitled to, I would formally instruct the landlord in writing of your intentions for compensation if the matter is not resolved. Firstly, it should speed up the repair and secondly if you end up in say arbitration, your case will be stronger due to the fact if after 10-12 weeks you suddenly put your hand up saying how 'badly it affected your quality of living…' what were you doing for 10-12 weeks?

      You will have to in the end, as others have said, weigh up possible retaliation by the landlord with rental increases.

  • I am not sure how you would expect a legal advise from a forum. The relationship between a tenant and landowner is dictated by laws. Either you must compensate your tenant or not. First if you have a real-estate agent managing your property ask them. Then you have free legal advises, tribunals or other. There is NSW tenant website with the tenant's right.

    Finally, any legal procedure has a cost, and a random result. I doubt your tenant will start one if the cost is few $1,000, and the benefit us only few $100.

    Your tenant seems a pain in the a**, unless you are asking a fortune for the rent then you are.

    If you are supposed to compensate the tenant, just make an offer.

  • +2

    Sigh…why Ozbargain thesedays is filled with things like this

  • The tenant would not choose your unit if it didn't have an air conditioner.
    You gotta repair it before the hot summer or compensate them.

  • Sometimes there can be valuable info from good posts, once u filter out the many crappy ones.

    But once again, when things start going round and round and not really getting anywhere, why not simply make a call and get proper info and avoid the arguments/endless debates abt moot points.

    Just call Dept of Fair Trading - they can be really helpful.

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