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Provided you don't advertise it as air-conditioned - or specify clearly in advertising "presently has air-conditioning but will not be repaired if it breaks" - then that should be fine. The basic premise is that unless you've clearly stated otherwise, and the tenant has agreed, then you have...

I'm glad both parties are happy. Don't forget to put in a special condition in the new lease that you do not intend to replace items that are broken like-for-like! (I don't think you could put in a blanket "no maintenance" condition, as that would contradict the essential minimum conditions...

If it's on no grounds, yes, but it's *very* important not to present it as, or give it the appearance of being, eviction on the basis that the tenant wanted the maintenance done, is my point. Regarding a commercial outcome, I understand that, but the landlord had the option to write special...

I don't think you're quite getting it. You're contractually obligated to maintain the property. If you'd not wanted to do that, you could have written it into the contract as a special condition that certain amenities wouldn't be replaced, or wouldn't be replaced like-for-like, if they broke...