Rent discount or hotel?

Question

I own a home out of state (Oklahoma) that is leased until the fall. Recently the sewer main broke and had to be repaired...$$$... That is done and paid for.

There was some back up into the house... I've paid for the cleaning.

Tenants also did do some cleaning on their own, which I do plan to give them some money for.

I know I need to give them a break on their rent for the days they were out of the house (almost two weeks)...Obviously, this doesn't cover the cost of hotel rooms.  They have now sent me the reciept and feel they shouldn't have to pay rent for the entire month due to the inconvenience.

I think I need to sell this house, it's been a money pit!!! But I digress... What do I owe them? What would the landlords here do?

Thanks in advance for any suggestions.

Stephen E. · Answer

@Bob Foglia There is misleading and incorrect advice in this thread. You are not responsible for the tenant's additional living costs. That is why it is a standard feature of many Renter's Insurance policies to pay for alternate living arrangements should these be needed. Direct the tenant to review their Tenant's Insurance policy. I trust that it is a term of their lease that they must at all times throughout the tenancy carry tenant's insurance. Insurance is meant for times such as this. You are not your tenant's default insurer and it is not your fault if the tenants failed to purchase insurance to cover an insurable risk.

I used to pay out for lost food when fridges went out but it became apparent tenants were unappreciative. Now I have the same answer for all these cases - call your insurer, many policies cover that also. I ask for written proof of insurance every January to enforce lease terms and ensure they have a Tenant's Insurance policy in force.

Matthew Paul · Answer

My lease gets longer every time I read posts with problems like this .

Deanna McCormick · Answer

One thing  to note, if you have a receipt from hotel you can expense the cost, so get the receipt.

Matthew Paul · Answer

That all should been addressed in your lease .

Bob Foglia · Answer

Account Closed I definitely agree...

But I think it needs to be reasonable. I received an email from the tenant with the receipts for the hotel... Two unrelated adults rent the house with two children. They sent me receipts for two separate SUITES in the most expensive hotel in the area. Is that reasonable?

The house rents for $45 per night ($1350/month). The receipts they sent were for $279 per night!!! To get to the hotel they rented they had to drive past the Fairfield SUITES and the Baymont SUITES (both nice hotels)... they also drove past a Holiday Inn and a Courtyard by Marriot... also nice hotels which are less expensive. There is a nice La Quinta SUITES across the street from their hotel for half the price...   The rooms they rented were more expensive than even the Four Points Sheridan!!!... So what's reasonable???

Bob Foglia · Answer

@Stephen E. - Thanks, I was getting the impression there might be some "misleading and incorrect advice in this thread".

It's a learning experience for me as a novice landlord for sure, with some good advice for the future... But I especially appreciate the recommendations pertinent the current situation.

Bob Foglia · Answer

Thank you all... I do appreciate the input.

@Matthew Paul and @Rhett Tullis - no language specific to the situation in the lease... The lease is long enough!!!...

@Deanna McCormick  - thank you for the thorough reply. I did not choose the hotel. I will definitely discount their rent for the days they were displaced and give them money for their part in the clean-up...

@Kim Meredith Hampton  - good idea to check with their agent. I don't know if they have renter's insurance, but I will mention it to them. That certainly could help.

Unfortunately, insurance isn't going to cover the repair to the main or the clean-up crew, but will reimburse me lost rent outside my deductible, so I will claim what I can there.

Oh, the joys of owning rentals!!!

Thomas S. · Answer

Give a rent rebate based on time out of unit. Renters insurance should cover their out of pocket expenses. No renters insurance, to bad.

Rhett Tullis · Answer

@Matthew Paul  lol i would like to see your lease, folks say mine is long yours must be a bible.

@Bob Foglia really depends on if you want to keep these tenants and if you think they will make more demands.  you only owe them for the days they could not use the house. i would generally do discount equal to rent but you could do hotel but set a limit of a decent hotel in the area.  ie holiday inn etc.  you don't owe them the full month.  Let me know if its in okc and you want to sell i'm always looking for places with new sewer lines lol

Kim Meredith Hampton · Answer

@Bob Foglia I typically rebate the rent for the time that the tenant could not occupy the house, thus you could probably rebate back the rent for the number of days they had to be absent from the property on their February rent, thus really paying for the hotel. Do they have renters insurance? if so, they could possibly claim on that. Most landlord policies have loss of rent, but I would imagine that your deductible is too high, most of the time not worth making a claim. Your choice, not sure how much the repair was on the main

Rent discount or hotel?

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