Tenant won't leave for mold remediation
A drain pipe disconnected in the crawlspace of a small apartment building. I noticed a musty smell upon doing my routine hallway cleaning (no tenants had complained of smell). Found water in the crawlspace that had resulted in mold that now needs remediation. 2 units need to vacate for 4 days during the remediation per the remediation company (to avoid cross contamination, vapors, and so they can air scrub the 2 lower units). Tenant has renter's insurance, but says it doesn't cover them staying in a hotel for 4 days. Tenant also says they wouldn't file a claim even if it did. We offered to deduct 4 days of prorated rent for the next month to help with hotel cost. Tenant says they don't have the money to stay in a hotel (nor family/friends in the area to stay with) and are not leaving unless we pay for them to stay in a hotel.
Our lease states tenant agrees to allow us to take appropriate corrective action in regards to mold/mildew/moisture conditions. It also states we will not be liable to Tenant for any disruptions or inconvenience to Tenant as a result of damages or repairs.
I believe these are our options:
1) Pay for the hotel (caveat here is that one other unit has to leave during this time and is being very cooperative). I think if we go this route, we should also offer to pay for the other unit, so this option is a double cost.
2) Deduct the cost of the hotel from their security deposit and pay for the hotel (this avoids having to also pay for the other cooperative tenant's hotel too)
3) Tell them they are in default of their lease if we are unable to start the remediation as scheduled and file for eviction. I know this allows more time for the problem to worsen in the crawlspace, so I'm not sure this allows us to preserve the property well.
Any other thoughts or comments are appreciated.
Thanks
@Janell Eisenhut
I would get an attorney to deal with them on what you can do by statute as each state may have slightly different laws.
Thanks @Chris Seveney, but an attorney would cost us more than if we just paid for the hotel.
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I would look into if option 2 is legal. If not, do option 1 offer to pay 50% of the hotel, but if you do renew their lease, increase the rent which will allow you to recover the cost of the rent. Also make sure you pick the hotel.
See if the local Red Cross can assist the tenant that cannot afford the hotel. If you have a professional organization declare the dwelling unlivable due to mold and remediation, they may get financial assistance. That, plus the prorated rent may cover the cost.
Quote from @Janell Eisenhut:
You've told the tenant it's not safe for them to stay until the problem is remedied. The Tenant doesn't care. If they don't care, why bother compensating them or putting them up in a hotel? Just do the work around them.
I would require them to sign a general "release of liability and assumption of risk" form. You can find them online for free with a Google search.
Check the specifics in your jurisdiction, but there are caveats in leasing laws that allow for emergencies due to health and safety. What the tenant wants is irrelevant. I'd recommend option #3 as that's the least amount of deviation from your lease agreement. Once you start making exceptions, you make yourself more likely to suffer and/or lose in the event you end up in court over it.
You are taking action that results in the units not being habitable for 4 days. Therefore, you either owe them 4 days worth of rent or you need to pay for a hotel for those 4 days. Is the cost difference between 4 days rent and 4 days at a hotel really that much? I'd pay for the hotel or an AirBNB and get the work done.
If having to go this route upsets you that much, non-renew them.