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I believe from reading SS that if the house has a gas heater and it stops working, you are pretty much obliged to replace it or get it fixed. I don't know if your tenant would accept a different sort of heater that would cost more to run. Notwithstanding the previous comment, if they are on a...

Agree with above. Tenant can sign a new lease or an altered lease at the new price. Your PM is hopeless.