When the dog days of summer come around, most tenants expect their rental property’s air conditioning to be up and running. Unfortunately, this can sometimes lead to rent increases if the landlord is not prepared for the increase in utility costs.
The cost of air conditioning is largely due to electricity costs, which are determined by local energy providers and typically vary throughout the year. When summer temperatures rise, so do electricity bills. As a result, landlords must factor in these increased energy costs when calculating monthly rent payments.
In some cases, landlords may be able to sign up for special plans with their energy provider that allow them to lock in consistent prices over time. This can help protect landlords from unexpected spikes in energy costs and avoid having to pass them on to tenants in the form of rent increases. However, even with such plans there are still certain costs associated with keeping a rental property’s air conditioning unit running that may require a rent increase during summer months:
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Maintenance fees: Regular maintenance checks help keep an AC unit running efficiently and prevent costly repairs down the line; however they can also add up quickly. Landlords may decide to raise rents slightly during peak season months as a way of recouping these expenses over time.
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Replacement parts: Even if an AC unit is regularly maintained on schedule, there’s still always a chance it will need new parts or components replaced at some point (especially if it’s an older model). This can be quite expensive for landlords so they may choose to pass these replacement costs onto tenants through higher rents rates during peak season months.
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Increased taxation: In some cases, local governments or power companies may impose additional taxes on utilities during peak season months that landlords have no control over – but must absorb nonetheless. To cover this added expense, some landlords opt for higher rents during hotter periods of the year as well as other initiatives like encouraging tenants toward smart thermostat usage or offering discounts for upgrading old AC units with more efficient models.
At the end of the day, however you look at it – summertime usually means higher utility bills which could lead to rent increases for tenants living in rental properties with air conditioning units (especially those located in warmer climates). While this isn’t ideal by any means – at least understanding why your landlord might need to charge more will hopefully provide you with some peace of mind knowing that your rental fees are going towards necessary upkeep and maintenance expenses rather than something else entirely!