Compensation for Tenants?

Question

Power went out in apartment Wednesday night, had electrician go out first thing Thursday and found the main breaker needed to be replaced. Because this needed to have him meet the utility company there to install it was not completed until Friday. Tenants ended up staying at their friends but was their choice to do that. Now wanting compensation for “finding other showers to use, laundry, food, lodging” I feel compensation is not required since we took care of the issue as fast as we could. Also if the tenants had renters insurance that might of helped in this situation which I’ve recommended they have. I just want to know other thoughts on if you’d go about this the same way.

Nathan Grabau · Answer

There is an argument here to be made that they are compensated for Wednesday-Friday's rent, which should not be a big hit for you. Do you require renters insurance in your lease or do you just highly recommend it? If they believe they have other costs they should be compensated for, I would tell them to open a claim with the renters insurance they are obligated to have per your lease.

You also could run into some state specific issues. If you are in a generally landlord unfriendly state (think like CA or WA), you probably have extra legal requirements you have to follow here.

You could also ask for receipts of the things they had to pay for when they were displaced, though this seems pretty generous to me.

Greg M. · Answer

There are two ways of looking at this, legal and as a business.

Legal: You are required to fix things and make the unit habitable in a reasonable time period. Based on what you wrote and the fact that the public utility needed a day to come out, I do not believe that any court would hold you liable. You did exactly what the government wants, you fixed the problem as fast as possible.

Business: This was an issue out of your hands. You fixed it as fast as possible and the inconvenience to the tenants was not massive. They stayed with friends. I doubt the friend charged them for showers, food, or lodging. This incident falls under sh*t happens. They really don't deserve much, if any, compensation. However, if they are good tenants, paying on time and paying market rent, I would consider knocking off 1-2 days of rent.

Theresa Harris · Answer

I would still compensate them for 1 or 2 days rent.  The power being out overnight isn't a big deal, but for 2 days it is.

Dan H. · Answer

what does your lease say?  It should cover this circumstance.  It is not like this requires a crystal ball to see that at some point there will be an event that should result in the tenant staying elsewhere.

Our lease requires rental insurance and explicitly states that we do not cover this inconvenience and that they need to address it with their rental insurance.  I admit the wife is a softy and 1) has covered hotel for a tenant who let renters insurance lapse even though the lease states that we will not 2) has let a pair of tenants who both let renters' insurance lapse continue to live in a pair of units that had no water for a few days.

Our good tenants appreciate that we try to provide them good housing and treat them well.  Having happy tenants is better than having unhappy tenants.   If they are good tenants, maybe cover 50% of the unoccupied days.

If your lease does not cover this event, add it to the lease for the next renewal.  Also add the requirement that the tenants have renters' insurance.

Good luck

James Wise · Answer

No need for you to provide them with any compensation. In fact, doing so would set a terrible precedent, if you budge here they'll be asking to be compensated for this or for that. Say no and move on.

Joseph Hammel · Answer

Say no. If they go more Karen don't renew.

Justin Manley · Answer

I would think in most jurisdictions, you would not be responsible.  You got the electricity back on as fast as humanly possible.

It would be possible for you to make the argument that they did something to the breaker and have to pay for the repair, but you didn't cause you are reasonable.

They should be reasonable also. It's an act of god style event, and imho you both need to suck it up and pay your side. In this case, the landlord's side was to get the repair done and

the tenant's side is to deal with it for the less than two days it was.

Richard F. · Answer

Aloha,

If your licensed electrician was on site "first thing Thursday", but the tenant left without providing access, it must not have been very important to them at that time. They can pay their own way, and/or submit to their Renter's insurance.

However...Why did the electrician need to wait for util co? If the main breaker was in the meter socket box, they wouldn't need access to inside of residence. If, on the other hand, the "main" breaker was in the distribution panel inside the residence, why would the electrician need the utility co? Removing the panel face plate and swapping out a breaker is routine...

John Underwood · Answer

Ask them to turn in store or hotel receipts and you will evaluate any compensation.

Compensation for Tenants?

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