what do you do with tenants if...

Question

I live and have rental property in Houston, Texas.  It floods in different parts of the city.  I'm curious to know/learn what my responsibilities are to my tenants if my rental house is flooded or in general becomes unlivable for any reason.  This is a topic that is new to me so be kind :)

1) I don't have anything written in my lease to address this. Should I?2) I do have property insurance for my properties, but I'm wondering what happens when there is an event?

3) Is there a difference if it is a natural disaster versus a man made issue in the home?

Thank you!

Fred Heller · Answer

Luke H.  As others have said, the burden is really on the tenant to buy renters insurance to cover their losses in the event of a flood, fire, or any other kind of disaster. Renters insurance will cover their personal property, and many policies will pay for temporary housing for a limited time.

If the home becomes uninhabitable the tenant has the right to terminate the lease without penalty upon written notice to you.

William E. · Answer

personally i start out by checking every property that i am thinking about buying to make sure it doesn't fall into the 100 year floodplain.

http://www.harriscountyfemt.org/

add something like this to the lease (seek actual attorney for proper text)

Damage by Fire/Flood/Natural causes. In the event that the building is damaged by fire/flood/Natural causes and through no fault of the tenant, and cannot be restored within a reasonable time in the opinion of the Landlord, this lease shall terminate with no further liability of either party.

this was slightly modified from here

https://www.biggerpockets.com/forums/52/topics/820...

there is also an example of flood experience in the above post.

Jeff B. · Answer

In Houston, I would certainly get Flood & Storm insurance - - you're right on the Gulf Coast.  I would also require proof of renters insurance 3 days after the lease was signed.

Eddie Memphis · Answer

1-Yes.

2-Depends. This relates to...

3-Big difference in coverage. You have to buy flood insurance through the government. They are specific policies that are not available everywhere. Your dwelling should have some water damage but the amount can vary a lot. It's been a while since I was in the business but most policies have about five grand or so for damage like a water heater.

Get with your agent and discuss with him. There are a lot of nuances in various coverage that apply to a dwelling rented versus owner occupied, etc.

And always make sure your renters have their own insurance for their personal property and especially liability. That is an extra layer of free protection for you.

Kurt K. · Answer

Hi Luke,

In addition to what @Jeff B. said, you can let your renters know that they have the option of purchasing renters insurance which is for the loss for the renter's personal property.

You should also check what is covered under your property insurance. There is probably an option  to purchase flood insurance for your structure if you thought it was necessary, but that does not effect the leased tenants, only your structure.

Jeff B. · Answer

Your lease gives housing the the lessee. If it's not habitable you have basically two choices:

• for a short term problem, move them into a motel/hotel at your expense
• or terminate the lease as of a specific date(no fault stipulated and agreed by all) and refund the deposit.

Luke H. · Answer

Thank you to everyone that responded.  I really appreciate the feedback.  I will definitely apply the information.

These issues have come up in the past and I've handled them, but wanted to get feedback from you guys to be informed and improve my processes:

1) A/C is down.  Houston is very hot in the summer.  A/C guys, even the 2 I use, can become very busy and schedule 1-2 days out.  I do have stated in my lease that the tenants give me at least 3 days to have the issues addressed.  One time a tenant told me it was too hot for her, so I told her to leave the house and find some place that was safe.  What do you guys suggest in this type of situation? Should I buy window units, tell them to turn on the fans and open the windows, get them a motel until the A/C is fixed?  Note: I do call the A/C guys ASAP and schedule ASAP.

2) Plumbing is backed up or there is a leak.  Again, I call the plumbers ASAP and schedule ASAP but want to make sure the tenant is safe.

Electricity down, tree branch through roof, etc..

In all cases, I work fast to make sure the issues are resolved ASAP, but until then, what are my responsibilities, or how should I handle it?

Thanks!

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