Learn from my mistake: a property I manage has a non-working air conditioner, it was agreed with the new Tenant (on behalf of the Lessor) this would be fixed in time for summer (1st Dec), anyway Tenancy goes sour for other reasons but now this chestnut gets dragged out and the Tenant is now claiming compensation of rent from reduced amenity by way of the air conditioner not working. To do this properly, what you need to do are these 3 things: 1) advert for rental property must state the proviso/condition (eg. lounge room air con not currently working but will be fixed in time for summer), 2) there must be a special term in the lease stating as much as well, 3) the entry condition report must reflect this too. [*In my case, it was a verbal agreement during the inspection before the Tenant made an application, which is not good enough. Naturally if a Tenant wasn't ok with this arrangement they wouldn't have applied and proceeded to rent it, but low and behold the depths of a "professional victim"] At the very minimum a dedicated disclaimer doc with the lease, but my advisors have told me you need to do the above 3 things in order to lease a property with a reduced amenity of some sort and not have the Tenant be able to make a compensation claim.