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Cost burden for rental air conditioners | Differences in equipment and leftover items and how to proceed with exchange negotiations

The air conditioner in your rental property doesn't work, makes strange noises, or leaks water. In such cases, the first question to ask is, "Who will pay for the repair/replacement costs?"

Last updated: About 4 min read

The air conditioner in your rental property doesn't work, makes strange noises, or leaks water. In such cases, the first question to ask is, "Who will pay for the repair/replacement costs?"

In conclusion, if the air conditioner installed as "equipment" under the contract breaks down due to normal use or deterioration over time, the landlord will, in principle, consider repairing or replacing it. On the other hand, if an air conditioner is treated as "leftover property" left by the previous tenant, the landlord may not be obligated to repair it.

In this article, we will organize the cost burden of rental air conditioners by dividing them into the contract, equipment list, causes of failure, negotiation procedures, and management company's practical response.

Is the first thing to check: “equipment” or “leftover items”?

The cost of air conditioning varies greatly depending on whether the air conditioner is owned by the landlord or left behind.

Classification Meaning How to think in case of failure
Equipment Provided by the landlord as part of the rental property If the equipment deteriorates over time or is used normally, the landlord is responsible for the cost
Leftover items The previous tenant has given permission to use items left behind. Landlords often have no obligation to repair
Installed by the resident Installed with the consent of the resident Residents are basically responsible for the installation

The documents to confirm are the rental agreement, important matters manual, supplementary equipment list, and check sheet when moving in. If "1 air conditioner" or "LDK air conditioner" is written in the equipment column, there is a high possibility that the property will be treated as the landlord's equipment.

If it deteriorates over time, the landlord is basically responsible

According to the Ministry of Land, Infrastructure, Transport and Tourism's restoration guidelines, wear and tear and aging caused by normal use are included in the rent. If an air conditioner reaches the end of its lifespan under normal use, it is not appropriate to make the tenant pay for replacement.

However, this is different if there is intentional or negligent behavior on the part of the tenant. For example, tenants may be responsible for damage caused by forced disassembly, long-term use without a filter, excessive neglect around the outdoor unit, or incorrect cleaning.

Cause of failure Concept of cost burden
Breakdown of equipment air conditioner that has been used for about 10 years Lessor is likely to pay
Refrigerant leak/compressor deterioration If it deteriorates over time, the lessor will be responsible
Damage caused by unauthorized disassembly by the resident Possibility of being borne by the resident
Malfunction of leftover air conditioner Possibility of being borne by the tenant depending on the contract details
Air conditioner installed by the resident Residents are responsible for this

Signs you should consider replacing

The air conditioner will give you a sign that it needs to be replaced before it stops completely.

Air conditioning and heating are not effective

If the room does not cool down even after lowering the set temperature, or if the room does not warm up even when you run the heating mode, there may be a refrigerant leak, a defective compressor, or a dirty filter or heat exchanger. If cleaning does not improve the problem, inspection is required.

There is a strange noise or smell

Unusual noises such as rattling, whining, and gurgling may be caused by deterioration of the fan or motor. Mold or sour odors may be caused by internal dirt, but in older models, internal deterioration may have progressed.

Water leaks

If water is dripping from the indoor unit, there may be a clogged drain hose, poor construction, or deterioration of parts. Please contact the management company before damaging the floor or walls.

Breaker trips

If the breaker trips at the start of operation, there is a risk of electrical system malfunction or electrical leakage. Stop using it and immediately contact the management company.

Steps for tenants to request replacement

If the tenant decides to call a contractor or buy a new air conditioner and install it, they will have trouble paying the expenses and handling the move-out process. Please proceed in the following order.

  1. Check whether it is equipment or leftover items in the contract/incidental equipment table.
  2. Record symptoms with photos, videos, date and time
  3. Check regular maintenance such as filter cleaning
  4. Contact the management company via email or tenant app
  5. Get inspected by a designated contractor
  6. Confirm in writing whether to repair or replace the item and the cost burden.

When contacting us, don't just say, "It's old, please replace it," but explain the specific symptoms and the disruption to your daily life. For example, it will be easier to take action if you record facts such as ``Since July 1, 2026, there has been water leaking from the indoor unit during cooling operation, and towels have been spread on the floor.''

Response flow for landlords and management companies

When the landlord is contacted by the tenant, they will confirm the equipment classification and cause of the failure. If the response is delayed, life will be seriously disrupted in the summer and winter months, and resident satisfaction will drop sharply.

Procedure Practical measures
Reception Check symptoms, installation location, date of occurrence, photos and videos
Contract confirmation Check whether it is equipment or leftover equipment from the list of incidental equipment
Initial judgment Check for urgency, electrical leakage, water leakage, extreme heat/cold waves
Arranging a contractor Inspection and quotation by a designated contractor
Cost determination Sorting out whether it is due to aging or intentional negligence
Explanation for tenants Information on repair/replacement date, cost burden, and necessity of suspension of use
Update ledger Record installation year, model number, and replacement date

Having an equipment ledger in place will make it easier to plan and replace air conditioners that are more than 10 years old. Rather than making judgments every time a malfunction occurs, you can reduce management costs by checking all at once when you move out or before a busy season.

How to handle an air conditioner that is over 10 years old

Manufacturers often set the standard usage period for home air conditioners at around 10 years, and the shelf life of performance parts for repair is also limited. In air conditioners that are over 10 years old, other parts may break down quickly even if you pay for repairs.

It is practical for the landlord to determine the following:

Status Judgment
Less than 5 years old/Minor defects Prioritize repair and cleaning
Improved by replacing parts in 5 to 10 years Comparing repair and replacement costs
Over 10 years/multiple defects Prioritize replacement
Signs of water leakage/electrical leakage Emergency response
There is a contract with the remaining items Reconfirm the treatment with the tenant

New air conditioners have improved energy-saving performance, so they have the potential to lower residents' electricity bills. ``New air conditioners'' is an easy-to-understand appeal when recruiting.

Contract/move-in explanation to prevent troubles

Problems with paying for air conditioners are likely to occur due to insufficient explanation at the time of signing the contract. In particular, it is necessary to clarify whether leftover items are simply left there because they can be used, or whether the landlord guarantees them as equipment.

At the time of signing the contract, we will leave the following in writing:

  • Indicate the number and location of air conditioners in the equipment list.
  • In the case of leftover figurines, specify the cost of repair and removal.
  • Establish consent procedures for installation by tenants
  • Specify how to handle removal and restoration of the property to its original condition when moving out
  • Inform you of contact information in the event of a breakdown and prohibitions on making arrangements yourself.

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INA&Associates' philosophy

Air conditioners are equipment that is directly connected to the comfort of residents' lives. Especially during periods of intense heat or cold waves, it is not just a matter of equipment failure, but also a matter of life safety.

We not only focus on clearing up responsibilities in the contract, but also on speed and explanations that allow tenants to live with peace of mind. For landlords as well, keeping an inventory of equipment and having a renewal plan in place before breakdowns will lead to long-term vacancy countermeasures and maintenance of property value.

Frequently asked questions

Q. If the air conditioner breaks down, is it always replaced with a new one?

Not necessarily. Judgment will be made based on the number of years of use, details of failure, repair costs, and parts supply status. If more than 10 years have passed and there are multiple defects, it will be easier to consider replacing it.

Q. Can I ask the landlord to replace the leftover air conditioner?

It depends on the contract details. If it is clearly stated that the property will not be repaired as leftover property, the landlord may not be responsible for any repairs. Please check the contract and important matters statement.

Q. If the tenant replaces the item without permission, can I claim the cost?

Exchange without prior consent will cause trouble. As a general rule, please obtain the consent of the management company/landlord before making any arrangements.

Q. If my electricity bill is high for an old air conditioner, is that a reason to replace it?

If there are any symptoms of poor effectiveness or malfunction, it will be a good idea to consider replacing it. Just because it's old or has high electricity bills doesn't necessarily mean you're obligated to replace it immediately under the contract.

Reference/Citation

Daisuke Inazawa, President & CEO of INA&Associates Inc.

Author

President & CEOINA&Associates Inc.

President & CEO of INA&Associates Inc. Leads real estate brokerage, rental leasing, and property management across Greater Tokyo and the Kansai region. Specialises in income-property investment strategy and advisory for ultra-high-net-worth individuals.

Daisuke Inazawa is the President and CEO of INA&Associates Inc., a Japanese real estate firm headquartered in Osaka with a Tokyo branch. He leads the company's three core businesses — real estate sales brokerage, rental leasing, and property management — across the Greater Tokyo Area and the Kansai region.

His areas of expertise include investment strategy for income-generating real estate, profitability optimisation of rental operations, real estate advisory for ultra-high-net-worth individuals (UHNWIs) and institutional investors, and cross-border real estate investment. He provides data-driven, long-horizon advisory to investors in Japan and overseas.

Under the management philosophy "a company's most important asset is its people," he positions INA&Associates as a "people-investment company" and is committed to sustainable corporate-value creation through talent development. He also writes and speaks publicly on leadership and organisational culture in times of change.

He has passed eleven Japanese professional qualification examinations: Licensed Real Estate Broker (Takken), Certified Real Estate Consulting Master, Licensed Condominium Manager, Licensed Building Management Supervisor, Certified Rental Housing Management Professional, Gyōseishoshi Lawyer (administrative scrivener), Certified Personal Information Protection Officer, Class-A Fire Prevention Manager, Certified Auctioned Real Estate Specialist, Certified Condominium Maintenance Engineer, and Licensed Moneylending Operations Supervisor.

  • Licensed Real Estate Broker (Takken)
  • Certified Real Estate Consulting Master
  • Licensed Condominium Manager
  • Licensed Building Management Supervisor
  • Certified Rental Housing Management Professional
  • Gyōseishoshi Lawyer (Administrative Scrivener)
  • Certified Personal Information Protection Officer
  • Class-A Fire Prevention Manager
  • Certified Auctioned Real Estate Specialist
  • Certified Condominium Maintenance Engineer
  • Licensed Moneylending Operations Supervisor