No shower for 3 days due to necessary repair

[Kay B.]

I am a new landlord and need to replace the only shower in our rental property, which will take 3 days to complete. The tenants will be staying at the premises for the duration of the repair and expect compensation for the inconvenience/impact. We offered them 25% rent reduction in daily rent throughout the course of the 3 day repair, but they have countered with expecting a full days rent reduced for each day. What are we legally required to prorate/deduct in rent considering it is their only shower and will not have one for 3 days? Thank you! 

[Bud Gaffney]

Do not reduce rent for this. You'll be stunned to see what "isn't working" next month!

[Alecia Loveless]

@Kay B. We had a minor flood from a 100 year rain storm that caused damage to our furnace which meant no hot water for showers to 4 units. It took us 2.5 days to get it fixed from the time the first tenant notified me there was no hot water.

I offered the 3 tenants that were there a $50 credit towards their next month rent and they were appreciative. The 4th tenant was out of town and not affected.

If a credit of 3 days rent will pacify your tenants just do it. If you didn't factor in some amount for repairs and vacancy and CapEx when you vetted your property I hope you will do so with the next one.

While a percentage set aside for repairs and maintenance doesn’t mean you’ll necessarily have enough stashed away for this expense it would certainly lessen the blow of the expenditure.

[Scott Esmail]

I personally would give the full 3 days if they make a huge issue about it just to reslove. If there is a second bathroom and they can shower there I would not give any reduction. My main concern is that the contractor does not extend past the 3 days and take any time off for weekend. I would strongly tell them needs to be done within the 3 days and that you are loosing rent because of this etc. 

[John Morgan]

@Kay B.

Give them what they want. You’ll look like a hero. But then raise their rent an extra $50/month for this at their next lease renewal. This is what I do. I want them happy, but will charge them on the backend for when they’re a pain.

[Errol NA]

Here are some thoughts about coping with these issues in rent controlled/regulated areas. In those places, the landlord is generally entitled to raise the rent once a year (in SF that is the case, and the increase is an amount set by the Rent Board) but some landlords do not impose those increases.

In SF, when allowable increases are not imposed they are “banked” so they can be imposed at a later date. If your tenants demand compensation, pay them what they demand and impose the current and all banked increases. Do that every year and you can use the additional revenue to deal with these kinds of situations when they come up.

Also, if you live in a regulated area, you may want to look up your right to pass through costs when you have to do a major repair. In SF, these are called capital improvement passthroughs and I believe in some instances 100% of costs can be passed through by a rent increase. It must be approved by the Rent Board but that is not difficult to do if you have appropriate documentation of the costs.

[Tim Baldwin]

Contact an attorney in the State the property is located in and get legal advice, as this is a legal question either pursuant to the contractual terms and state law (whether statutory or case law).