Honolulu, HI · Member since 2015 · 3 posts · 1 vote
Hi BP community! Quick question-here’s the scenario we have a long-term tenant who we needs to move out for a couple months due to emergency ceiling and wall work that needs to happen in his unit. We will be paying for all construction, of course as well as not charging him rent for the two months or so that it will take but he’s also asking that we pay for his housing elsewhere, my question is are we responsible to pay for his housing while work gets done? We live in Honolulu and Airbnb’s are super expensive as our hotels so not sure what to do. Any advice greatly appreciated.
Investor · Member since 2021 · 591 posts · 695 votes
3y
@Kaira Resch I'm no lawyer, and I don't know what your local laws/regs are for in a situation like this (so, you'll want to do your own homework on that)
However, in many leases, I think there are often clauses that terminate the lease if the unit becomes uninhabitable due to some uncontrollable event (like a fire, or a tree falling through the roof). In those types of situations, I doubt it's the landlord's responsibility to pay for the tenant's housing...does your lease have any clauses regarding what happens if the unit becomes uninhabitable? (if not, you may want to add one for the future).
Even if the landlord had another unit that the tenant could temporarily move to, the tenant would presumably still be responsible for paying the rent at that unit (although, if the tenant had a good history, the landlord might be well-advised to give them a discount for the inconvenience of moving).
Investor · Member since 2021 · 591 posts · 695 votes
3y
@Kaira Resch I'm no lawyer, and I don't know what your local laws/regs are for in a situation like this (so, you'll want to do your own homework on that)
However, in many leases, I think there are often clauses that terminate the lease if the unit becomes uninhabitable due to some uncontrollable event (like a fire, or a tree falling through the roof). In those types of situations, I doubt it's the landlord's responsibility to pay for the tenant's housing...does your lease have any clauses regarding what happens if the unit becomes uninhabitable? (if not, you may want to add one for the future).
Even if the landlord had another unit that the tenant could temporarily move to, the tenant would presumably still be responsible for paying the rent at that unit (although, if the tenant had a good history, the landlord might be well-advised to give them a discount for the inconvenience of moving).
Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
3y
@Kaira Resch The lease should address this types of situations, meaning that the rent is abated at the time the tenant can not occupy the property, meaning they could use their rent to pay for elsewhere to reside during this time.
Does the tenant have renters insurance? Your owners/landlord/dwelling fire policy should cover loss of rent that you can recover
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
3y
Aloha,
Check the Pagoda for more sensible Kamaaina pricing, although we have not needed to put tenants up since pre-covid.
You probably would have been better off to just terminate/let them out without penalty. Depending on what caused the damage, your insurance hopefully has "loss of rents" coverage...
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
3y
If you’re paying for their lodging during the construction they definitely have to be paying rent. It’s not no rent and free housing alternative. Let them out of the lease is the easy/best answer, their required renters insurance is also a great answer. If you can afford to house them for the same or less than the rent that’s your last/worst case answer. They pay you rent and you give it to someone else.
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
I would terminate the lease and let them move, then do the work after they are gone. If they insist on coming back, charge them no rent while the work is done and they can use that money to find temporary lodging somewhere else.
Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
3y
@Kaira Resch
What does the lease say about this. I include in my lease a statement that in this case, they are not responsible for rent, but I am not responsible for their accomodations.
New to Real Estate · NY · Member since 2020 · 196 posts · 29 votes
3y
So what if the whole unit ends up being renovated and now it is up to market condition with the renovation, if it is agreed that the tenant will return will the have to now pay market rate rent?