Tenants need to Vacate for a few day while maintenance is being done.

Member since 2021 · 9 posts · 6 votes

Good day BP family,

Unfortunately, excess moisture needs to be dried out in the kitchen ceiling which is also the bathroom floor (great!). So the the only bathroom is going to be out of order, possibly for about 3 days maybe more.

Any feedback or helpful tips on how I should approach this with the tenants?Should I waive their rent so they could use that for a hotel? Or have them pay the rent as normal then deduct it from the hotels bill on the next months rent?

I'm in unfamiliar territory and not sure how to go about this. If anyone could help, that'll be great. Thank you very much.

Dave T.

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Some tenants (the good ones) understand things happen beyond your control. They will offer to stay with a friend or family member. Others will use the local gas station bathroom and shower at the gym. Others will kick and scream and demand you give them three months of rent free.

Talk to your renters and get an idea of their expectations, then develop fair compensation. The most I would consider paying is to put them in a hotel for a couple nights. There's no need to compensate them for dining or anything else because the rest of the rental is still usable.

Even if your renters are understanding and don't ask for anything, I will still consider compensating them for the inconvenience with a $100 gift card or something.

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Kim Meredith HamptonBusiness Member
Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
2y
Hi David
Do you have anything in your lease or state statutes that outline that happens when the property becomes uninhabitable? You could most likely do it either way; pay for the hotel or deduct from rent next month with a copy of the hotel receipt. Please make sure to specify “how much” you are willing to reimburse, so they don’t go stay at the Ritz Carlton. Will you also reimburse for food too, make sure this is talked about and put in writing so there is no confusion
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Some tenants (the good ones) understand things happen beyond your control. They will offer to stay with a friend or family member. Others will use the local gas station bathroom and shower at the gym. Others will kick and scream and demand you give them three months of rent free.
Talk to your renters and get an idea of their expectations, then develop fair compensation. The most I would consider paying is to put them in a hotel for a couple nights. There's no need to compensate them for dining or anything else because the rest of the rental is still usable.
Even if your renters are understanding and don't ask for anything, I will still consider compensating them for the inconvenience with a $100 gift card or something.
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y
In these situations I take care of my tenants. I put them up in a hotel for a few nights till the repairs are made.
My guys can gut a bathroom and redo it in 2 days max.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
2y
I'd offer to pay them $X to cover a hotel stay for 3 nights and give them a gift card for $100 (find out what they like or get one that can be used anywhere). Have them pay the rent as normal. They may opt to stay with friends, but I'd still give them the money for hotel.
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Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
2y
If it were mine I would have them pay the full contractual rental amount, and then have them invoice me for the charges they run up. With copies of their bills attached as backup.
That way accounting seems to be more likely to be correct.
Good Luck
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Lynn McGeein
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
2y
@David Travieso first check state and local landlord tenant laws because you may be required to provide lodging or possibly just reimburse days not available, if damage was not caused by them. Once you know what is required, then you can discuss options with tenant as some may prefer a rent credit if they can stay with family or friends while others actually need a place to stay. If they’re being unreasonable, I’d only do what’s required, even if that’s just prorated rent which wouldn’t cover a hotel.
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Jon A.
Asheville, NC · Member since 2017 · 385 posts · 274 votes
2y
Their renters insurance should pay for a hotel.
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Tracy Minick
Rental Property Investor · Monroe, WA · Member since 2018 · 177 posts · 98 votes
2y
Always check your state laws and lease for scenarios: if unit becomes uninhabitable.
Option 1: Renter's should have rental insurance which would cover this.
Option 2: Have them pay the contracted amount and provide a receipt for hotel, however I would also review local per diem rates and provide guidance on their budget.
Hoping for a smooth project for you.
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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
2y
@David Travieso I have discussed with the tenants we have work to do and it is going to take x days, you won't have a bathroom? do you have someone to stay with or will you need to go to a hotel? Most say I have friends/family and I rebate the rent plus a little something. I have had instances where people wanted to stay but it wasn't a no bathroom for days situation. I had one where we could wait and they went on vacation while we did it.
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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 678 posts · 259 votes
2y
Quote from @Jon A.:

Their renters insurance should pay for a hotel.
What are you basing this on? Renters insurance kicks in when there is a covered peril. Excess moisture in itself is not a covered peril. Was there a burst pipe? Likely covered. Maintenance issue/slow leak? Probably not covered.
Insurance is a licensed industry for a reason.
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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 678 posts · 259 votes
2y
Quote from @Tracy Minick:

Always check your state laws and lease for scenarios: if unit becomes uninhabitable.
Option 1: Renter's should have rental insurance which would cover this.
Option 2: Have them pay the contracted amount and provide a receipt for hotel, however I would also review local per diem rates and provide guidance on their budget.
Hoping for a smooth project for you.

"Rental insurance would cover this". Are you sure about that?
Based on the limited information from the initial post (the key piece missing being the CAUSE of the moisture) it's impossible to say if renters insurance would cover this situation.
My guess (as a licensed agent with 15+ years of experience) would be that it won't be a covered loss but again that's just a guess.
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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 678 posts · 259 votes
2y
Another note on the renters insurance conversation.
Even if renters insurance is applicable in this case, there would be likely be a deductible that applies. Let's say it's $500 which is common. A couple nights in a hotel probably isn't going to be over that anyway. Just food for thought...
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