Topic: A/C Broken! Residents Livid, Help!

I need some help from my fellow multi-family members...

We have a property whose A/C broke about a month ago. This A/C has three condensers on top of the building. One went last year, causing warm A/C for about 2 months in the middle of summer and it happened again this year to the third one. It's 90 degrees and 100% humid in Ohio right now...just nasty. Residents are LIVID (as can be expected). The property sent out a letter explaining the situation, how we have to bring in an outside company and they have to order parts/machinery, etc. to fix. We offered free ice water in the leasing office.(LoL) Obviously, that didn't go over very well because residents have water in their apartments. Residents are asking for rent credits (because all utilities are included in the rent...) I am pretty sure management will not do that (as they didn't last year), but instead offered $50 off 1st months rent if they renew for 12 months when their lease is up. Residents are obviously laughing at us and our offer because of the issues with A/C the passed two years...

I think there needs to be a little something more than that, but don't think the management will do much considering it's a beautiful property and really nothing else like it around. They think they can release what they lose but I am afraid of the negative reviews and possible news stations being called and the negative press that will cause. There was a recent unfortunate incident with a party getting out of hand and being on resident retention/marketing I am trying to find ways to smooth over everything that has happened in the last few months.

I was thinking a larger than normal resident appreciation party with large $$ prizes to be won. I talked it over with our VP but he said they did that last year and no one seemed to care. But, he also thinks no one seems to care about any resident appreciation party and thinks they are a waste of time/money/resources because residents don't seem to really care or respond to them (his experiences, not mine).

I want to do something special for residents due to this inconvenience two years in a row but would like some ideas from other marketing professionals in the industry.

Anyone? Thanks again for your help and thoughts. Always appreciated.

Jamie, how long do you anticipate the Residents will have no A/C? Honestly, if I were a Resident, I am not sure I would appreciate a party. I don't want to celebrate the fact that I have no air conditioning. :( Do you have a pool? Any window unit A/Cs to give your elderly or those with health conditions? Maybe you could team with a restaurant for gift cetificates for your residents for a night so they don't have to cook? Provide ice and lemonade mixes; provide ice cream at the pool? People can understand having a problem if there is good communication that things will be fixed shortly. But no one wants to be without A/C in summer for a long period of time. Residents need to be informed as to the progress being made. Maybe post something on your facebook page... Sorry, not sure if that helps or not.

Good tips! I never even thought about the gift certificates for no cooking! I like that idea.

We are hoping it is fixed by end of this week but we are at the mercy of the A/C company to order parts, get them shipped, order the crane to hoist to the roof, etc.

We were going to do a resident party in August, when they would have (hopefully) had AC for a few weeks/months. We are offering $50 off 1st months rent to renew a 12 mo lease but really, two (maybe three) years this has happened. The company plans to replace the entire system in the fall, but we can't do anything until A/C is no longer needed (because we would have to turn off the entire system to replace it).

Our units are central air so we would have to get floor units, which is not something we have at the property (and at $400 unit, yikes).

We do have a pool, but residents complain it's too warm. I am trying to use facebook/letters in building to provide good communication with residents on the status. I will see if we can do some yummy cold drinks and ice cream at the pool.

Thank you for your suggestions!

I did this once in the summer ad it was a lot of fun. We had a camp out on site. Everyone slept in tents, or lawn chairs at the pool, on blankets, etc. We served hot dogs, hamburgers and played all kinds of games, including flashlight tag, read stories and had a fire pit where we sang songs and roasted marshmallows. At least, the attempt for your community is to come together and weather the heat together with a fun atmosphere and a lighter heart. It might be cooler to sleep outdoors. Then you could host another more formal resident party later.

Hello Jamie,

I am going to try and keep this as short as possible:

The residents are only going to understand one thing and that is the problem is fixed. I would identify who has health issues with the heat and it is documented. Get them taken care of with some portable in house units.

The next deal is looking at what is wrong and how long it is going to take to fix the problem. My focus and mind you this has been my focus is always look at fixing the problem at hand. So, the management needs to know what it will cost to make the repairs. I would not waste money with parties and discounts, but rather have money ready to house those that are deemed emergency cases to keep you company out of a possible legal issue.

Once you have the item fixed, then you want to get your maintenance personnel and find out their preventive maintenance program and was the system tested before the summer weather kicked in?

Then your system is it running R22 or 410a? The 410a runs at a higher pressure and if you have an old R22 coil you could see leaks in the area as well.

Then are you capturing the installation dates and if the items are still under warranty or not?

The other thing is look at the company you are using for the repairs and are you getting the best deal? You may be able to get some companies come in and work with you or whoever your supplier is may work a special deal with you to really cut the prices.

If you do not have a list, you want to know who your personnel are with high blood pressure issues, infants, and the elderly to name a few and have a priority list of who you would get temp housing for. May even work a deal with a local hotel to assist you or a sister property.

For sure I would look at my preventive maintenance program and keep documentation on all work performed.

NOw this is just my humble opinion, but the VP needs to be assisting here with their gained experience. I have seen to many people after the fact jump in and tell you what you should have done, but were in no way assisting in solving the situation.

Hope this helped in some way.

Management cannot over react or under react to this situation. This happened last year at this property so in essence they should already have a Reactive Plan of Action. (They should have had this issue fixed last year. Since they didn't, now they have to play the placate the tenant game.) In any event, Jamie is in Marketing and probably cannot answer your technical questions, Nate. Sorry, Jamie ... Maybe you can! Management cannot promise to pay for temporary housing for an entire property. They can however set up services and have Resident needs taken care of as quickly as possible. They could contact the Red Cross about setting up cooling stations during the day and pay for transportation for those who don't drive. They can help Residents contact relatives who may allow them to stay with them. I think Jamie is looking for ways to offset the horrible negativity that results from this type of circumstance. I think Nate is correct in assessing the technical aspects, too. But I can tell you I would be very upset to go without air conditioning in sweltering 90 degree weather for 2months!! What kind of management company has this problem one year and again the next? You do have a PR nightmare on your hands. But in the meantime, you guys will have to work together to resolve it as quickly as possible.

Makes me wonder if the owner or partnership of the building even knows about this.
If I were the owner I would be getting me a new Property Management Company poste haste.

Seems there is more to the story than we know so far. Most companies like Trane, Carrier, Grainger, etc could have that material and machinery to the building in three days by line haul truck. Saying that in the described situation in the OP.

Is everyone waiting for the "other guy" to get off his behind?

Also if not each tenant has their own A/C unit, how do you charge them for electricity?

Hi everyone! Thanks for responding.

Herb, management and owners are the same people/company and they are aware of what is going on (and what has happened before). The owner and his wife actually used to live there. Each unit has a central A/C unit and all utilities are included in rent. Residents pay a certain fee based on their unit and that covers utilities. And of course, many residents want utility reimbusements. I was Cc'd on an email today from Gardiner Trane to the property manager stating they are having difficulties locating smaller parts from their vendors and are looking to involve local (to us) vendors/suppliers.

Mindy, we have two compressors up top the building. It's an older system to my understanding. Last year one broke and we replaced it on about on the same timeline. This year the other broke which is making the other function poorly (too much demand, I am guessing). I never even thought about the Red Cross and other human organizations in this type of situation! I am so glad I came here to ask my question. The A/C for this building is hoped (nothing in stone) to be fixed by Monday but if it isn't for whatever reason I will consider that suggestion. Also, thank you for the outside/camping night idea!

Nate, I can't really see them housing people or buying portable units. In their eyes, units are still "habitable" (even though they are 80+ degrees?) or they are possibly afraid that when every little thing that goes wrong happens residents will demand to be re-accommodated? We rehomed residents when we had a fire at a building, but that is one of the only times I have witnessed this or accommodating for an inconvinience. I mean, it's been 2 months and many unanswered and unreturned calls from regional manager (according to recent Facebook complaints). To my knowledge no one is mentioning or exercising their tenant rights. They are just posting constantly on our Facebook page (and recruiting friends who have never lived on property or even liked our page to get in on the posting of comments. Which is okay with me because I can control this content). Unfortunately all I have to tell them is the same story and they are starting to get unkind with their posts and messages. I wish they could understand I personally can only do so much. I can sympathize, that's about it. The questions you pose about preventative maintenance are good ones and ones I may pass along to our VP to use for next year and other properties. I am not sure of their pre-planning. The system is old and they were planning on replacing the entire thing during the fall (when A/C is not needed as they would have to shut off the air completely). I am not sure what type of system it is off hand. The new compressor I believe will work well again after the burden is taken off of it by replacing the second unit. Our VP is actively involved with the issue and is trying to do as much as he can with what he has to work with. It seems like he has to constantly follow up with everyone on top of dealing with the day to day.

I am just looking from a marketing/retention stand point. Really just trying to come up with ideas to "smooth this over" so we don't have a ton of people moving, calling the news stations, posting "everything is wrong" with my apartment reviews on AptRantings....I mean Ratings, just because of this ONE (large) issue. They are giving $50 off 1st month to renew but I have a feeling residents are just going to be offended at that gesture like they were with us offering iced water near the leasing office (Either not my idea...) Again, thanks for everyone's suggestions, posts, knowledge and passed experience sharing. I really appreciate all of it in trying to formulate a positive outcome to this unfortunate situation. Sorry for any grammar or spelling mistakes. I am responding via mobile.

@Jamie Lynn

Thanks for clearing up the exact situation with your building. Now it sounds like the owner and/or contractor is trying to "fix" the system instead of ripping it out and putting in everything new. This is a familiar position, and it can, as in this instance, lead to time evaporation, which leads to upsets with building occupants.

It has to be realized that there are "those" times where a situation just gets icky and gets worse as with each tick of the clock. It is the old adage of the "Best Laid Plans of Mice and Men", and you get in the twilight zone somehow.

In your position, your trying to salvage the situation for your residents in some manner. It is the thought of "If I am sweating for a day I am pissed", and "If it looks like no one is doing anything and I am sweating for a week, then I am leaving".

Once the cool air is rushing in, the people will forget their pain, but will hold grudges against the building for a "while".

My suggestion once the situation is fixed, would be to draft up a letter to each tenant and fully explain why it took so long to fix it. Most people have the capability to understand, once they are no longer suffering. I find that most people being FULLY informed as to who, what, why and where something happened will be accepting of the facts.

If people just don't know exactly why something happened, then they will make up the reason for it, and they will roast the management over their preconceptions. After all, it HAS to be the manager's fault, right? LOL.
Good Luck!!

The residents are actually not mad at the manager because I think they know she lives in the building and is suffering right along with the rest of them. They are angry at the management company because the regional not returning phone calls. They are definitely coming after the management company with torches and pitchforks.

Have you notified the residents letting them know exactly what happened and exactly what steps you are taking? If there is a delay in getting parts are you notifying them of what the delay is and the game plan to get it done? While letting them know won't make their apartments any cooler, constant communication can often keep tempers down.

How about offering fans? Also if the pool is too warm you could get those misting hoses and set those up at the pool for use.

It's unfortuante that you have to be the person who catches the brunt of this. I will tell you as a manager I don't care if it took 15 HVAC companies I would have this done ASAP!

You obviously have an owner/management company that is going to postpone improvements until forced by financial threats. One tenant will wise up, get an attorney who will propose a rent strike. As long as the rent goes into an escrow account, that is a legal tactic upheld by the court. When the owner has to make monthly mortgage and utility payments and salaries, without the monthly income, just watch how fast they replace the units.

By then it’s too late, the tenants and attorney now have the upper hand and will sue for damages, legal fees and everything penny the attorney can get for his clients and himself. You will be the one stuck in the middle and forced to testify for the tenants.

Then there’s the media coverage. Management thinks they can replace vacancies easily, no, and then it’s your fault that they are not replaced.Why should you live under this pressure?

My advice: Get out now while you still have a salable reputation. There are plenty of companies looking for good community marketers/managers.

Once the downhill slide begins you’re done. Imagine yourself interviewing for a position with another company and trying to explain why the property you managed has a law suit between the tenants and the management/owners.

P.S. I’m an optimist.

I know your intentions are good but a party doesn't really say if I were a resident that you are taking this very seriously at all. The first thing I would do is keep everyone updated DAILY! Which means the property manager or you need to contact the heating/ cooling company daily! Explain to the residents in DETAIL about why there are delays. Someone needs to keep up on the A/c Contractor- they tend to drag their feet especially this time of year as this is their busiest.. it's convenient when the part comes in the day after they just got done with a a huge job :) In Ohio (I live here too) A/C is usually an additional bonus to renting but we don't live in an area where the temperatures reach levels of 100 degrees or more this past week we did see temps of 93-96 but unless you have a health condition this heat is an annoyance not a health issue. There are several communities that do not have A/C in Ohio and survive.

Secondly, find out how much they spent last year on this "Appreciation Party" and take that money to actually benefit the people... If they spent a 1000 dollars than use it for something that THEY WANT... Do they want the playground updated? Do they want the Laundry room re-painted? Have the been complaining about the parking lot having pot holes that need filled? Or the Community Room needing new tables or chairs? This is where that money should go... explain to them that you can't do much right now for the A/C and it's out of your hands but you can do something that they have wanted for a long time.. of course talk to your home office first before letting them know... If your home office says no than you need to fight for you residents because honestly $50 at renewal for a one year lease is silly... Is $50 really going to change someones mind on staying or going? NO! But customer service, getting their needs met, and having a wonderful relationship with the on-site staff is worth more than any amount of money!

Stephanie, I have been trying to be in contact with the manager so she can let me know as well as letting the tenants know. We are definitely, in my opinion on top of that now. Where we always? Maybe not, but since the issue has been brought to my attention, I have been trying very hard to keep updates about the situation. Yes, this is very important.

Richard, if you know of any openings around town, let me know? ;-) I am not sure why the decisions of other people that just happens to fall into my lap in this situation make my reputation non-salvageable? It's not something I am personally doing. I am good at what I do. Hopefully anyone who can see the situation (if it gets bad) can realize this. Clearly I am not the bosses, purchasing managers or owners. I am very surprised I haven't heard of legal threats from tenants. Just weird comments about petitions and stuff...

Chrissy, You're right. The manager had to call the company directly because the person that was taking care of us kept dropping the ball (the manager also lives AND works at this building, poor lady). The resident appreciation party wasn't a HUGE expenditure, but it was a decent chunk. I will have to look back and see if we can't invest that into something the residents need/want (after the AC gets fixed, because I am sure that is all they want right now). Great idea, thank you! This property already has A TON of amenities, but I am sure there is something the residents would like ...like a rent credit... ;)

Thanks again for your responses, ideas and comments!