Uninhabitable rental

[Richard T.]

Greetings all,

My first investment property has become a victim of Superstorm Sandy.The one family house is now without electric, heat, or hot water.It will likely be months until essential services are restored.My tenant believes that this excuses her from any further rent payments until the house is repaired.
How do I calculate what percentage of the monthly rent is owed?

Thank you in advance for any assistance,

RT

[Joel Owens]

Based on my experience you do not have a safe and habitable structure to live in for a tenant at this time.

If you force the tenants to live there and they get sick they could sue you for those conditions.

Will the insurance company consider the place a total loss??

Is your lender offering a moratorium on your loan for victims of hurricane Sandy??

The tenant could call the health department and have the place deemed uninhabitable upon inspection. A judge will usually tell the tenant if they chose to stay there why didn't they move if it was dangerous?

If they say they didn't have any money etc. they will generally lose.

Another aspect is if you make the tenant leave and the property sits vacant it might incur more damage.

Maybe you could offer a partial credit while the repairs are ongoing.