Can't afford repairs but tenant doesn't want to move

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Can't afford repairs but tenant doesn't want to move

Jared Lane
Hampton, VA · Member since 2017 · 6 posts · 2 votes

Hello everyone. I have run into a situation that I haven't encountered before and was looking for some advice. We have been getting a lot of rain here in Ohio and one of my properties started having some pretty bad basement flooding issues. We have tried to rule out all the cheaper solutions that tend to solve the problems but this time it's more serious and will be a lot of money to repair properly. I don't have the money for the repairs right now so I am considering just telling the tenant they are welcome to break the lease and of course all of their deposits will be refunded, but they don't seem to want to leave. I don't want them getting sick and I also don't want to be liable for anything that can arise from mold if they continue to stay in the property. What should I do if I offer for them to leave with a refund and they don't want to?

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Account Closed
Contractor · San Diego, CA · Member since 2018 · 432 posts · 221 votes
6y

@Jared Lane a real French drain would be installed below the height of the basement slab somewhere next to the footing just outside the basement walls. I’ve done at least 1 by hand and it wasn’t all that bad. No problem with the occupants because it’s all exterior. Honestly, you don’t want to do that kind of digging too much with an excavator anyways, and often there’s some decks you have to get under anyways. After I dug it up, I cleaned the walls, rolled water proofing on the walls, then, adhered 6mil plastic to the wall up to the grade and ran it down to the French drain area. When we backfilled, we also solved the slope issue by making sure the grade slipped away from the house for at least 6’ (12’ recommended). Usually the main problem causing water is the grade sloping toward the house, and lack of gutters that run the water away with the proper downspout. As far as walls in the basement, that stuff could cost you some significant time with all your slab drainage corrections etc. watch out for the lawsuits right now on mold etc. people are burning bridges and going for broke and you don’t want the chaos to take itself out on you for mold. Your best quick solution may be to make the basement off limits and lock it, put a dehumidifier in there (there should already be one) and find where the low spot is, bust a hole in the slab the size of a 5 gallon bucket and drop a good sump pump inside the bucket when you get it in the hole.

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  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    @Jared Lane this is why reserves are important, if they don't want to move you may be on the hook to borrow the money to fix this because you are bound by the lease just as much as they are.  You aren't really doing them a favor by letting them out of their lease, it is a huge hassle to move.  You haven't lived up to your end of the lease agreement to provide proper housing.  Even if you could get the tenant to move voluntarily, you're left with the same problem as before, a house that you can't rent out because it floods and you need to fix that, and if you want to sell it, guess what the buyer is going to want that fixed as well or they'll take a discount on price greater than the cost to fix the problem.  

    Your best option is going to be to borrow the money and fix it the right way now because you have no good options here.  Maybe your insurance covers some of it, but I doubt it.

    0Reply
  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    6y

    Check your lease, I started with a generic one I drafted online and have added to it over time but mine states "if the premises become totally or partially destroyed during the term of this agreement so that the residents use is seriously impaired owner or resident may terminate immediately upon a 3 day notice.  Hopefully you have something similar and can use that to get out of the lease.  I also can't imagine someone wanting to stay in a flooded home so hopefully this will be a non issue.

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    Just tell them that they need to move because you can't fix the problem and it isn't safe to live there.  Don't give them the option.  

    Have you talked to a bank about a short term loan or a HELOC to cover the costs?

    0Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    You have to fix the problem sooner than later and an empty building is definitely not making any money. You need to check with more than one contractor. Tell us more about the problem perhaps we can advise you. I don't think chasing the tenant away solves anything.

    0Reply
  • Mike McCarthy
    Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    6y

    Why do you think it’s a $$$ fix for a moisture-ridden basement? A sump pump installed should be $500-1000, something that could be put on a credit card.

    What problems are you actually having?

    0Reply
  • Jared Lane
    OP
    Hampton, VA · Member since 2017 · 6 posts · 2 votes
    6y
    The work will involve ripping out the studs and drywall in the basement so that the floor can be jackhammered and a drainage system and sump can be installed. I can do a lot of this work myself over time but I cant do this while they are occupying the property. The tenants were using the partially finished portion as an extra bedroom. The value of this house does not justify the cost to have a contractor do all the work when I can do a lot myself. The covid issue already has me leveraged more than I like with multiple tenants not paying full rent.
    0Reply
  • Jared Lane
    OP
    Hampton, VA · Member since 2017 · 6 posts · 2 votes
    6y

    Mike, water is coming in from the walls. They are old poured stone. I have had to get several french drains installed in basements here in the past few years by different contractors and they have all ranged between 6k and 13k. Certainly not just installing a $500 sump pump. I sure wish that was all!  Quotes to attempt to fix the walls or cover with a shotcrete have been pretty similar to the drain. 

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    @Jared Lane  How long do you think it would take you to install the sump pump (forget re-drywalling for the moment)?  If the unit is vacant, you lose rent and then have to get new tenants...probably 2  months' rent.

    0Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    @Jared Lane that sounds ugly ripping apart the inside and jackhammering.

    I have had great success by extending downspouts leading water away from the building and installing French Drains around parts of the perimeter. Sometimes changing grading will work too.Have you explored any of that?

    1Reply
  • Jared Lane
    OP
    Hampton, VA · Member since 2017 · 6 posts · 2 votes
    6y

    @Theresa Harris I understand the point of your question. Weighing the lost rent vs the expense I get, however at the moment I don't really have the means to access the $9k. I can't forget the drywall removal because it is a necessary part of installing the french drain. The sump pump alone will not solve anything without the drainage leading the water to the sump. But without REINSTALLING the walls, I could expect a few months for the drainage and sump pit. This is a low rent property; only $550.

    0Reply
  • Jared Lane
    OP
    Hampton, VA · Member since 2017 · 6 posts · 2 votes
    6y

    @Bjorn Ahlblad , Yes those are always my first go-tos. I even went a step further this time and had the old gutters replaced, etended downspouts much further from the house and had the yard completely tilled up and regraded away from the property and unfortunately that did not do the trick this time. I believe the old basement walls are just in too bad of shape or its ground water coming up from below. This will likely be my last investment property with a basement. They've just been a money pit.

    0Reply
  • Wesley W.
    Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    6y

    Is this property on a slope? I'm assuming so.

    Can't you excavate around the exterior of the basement wall (even by hand, if you want to DYI) and install an impermeable barrier against the block and/or a french drain to divert the water around the of upslope side the basement to the down slope?

    0Reply
  • Jared Lane
    OP
    Hampton, VA · Member since 2017 · 6 posts · 2 votes
    6y

    @Wesley W.  working the issue from the exterior was one of my considerations but it would all need to be done by hand. The houses are too close to get any type of machinery in there. And I dont really know how far down I would need to go.

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y
    Originally posted by @Jared Lane:

    @Theresa Harris I understand the point of your question. Weighing the lost rent vs the expense I get, however at the moment I don't really have the means to access the $9k. I can't forget the drywall removal because it is a necessary part of installing the french drain. The sump pump alone will not solve anything without the drainage leading the water to the sump. But without REINSTALLING the walls, I could expect a few months for the drainage and sump pit. This is a low rent property; only $550.

    A $9K repair on a $550 property changes with the current situation means priorities. I see why it would be easier if they left.

    0Reply
  • Account Closed
    Contractor · San Diego, CA · Member since 2018 · 432 posts · 221 votes
    6y

    @Jared Lane a real French drain would be installed below the height of the basement slab somewhere next to the footing just outside the basement walls. I’ve done at least 1 by hand and it wasn’t all that bad. No problem with the occupants because it’s all exterior. Honestly, you don’t want to do that kind of digging too much with an excavator anyways, and often there’s some decks you have to get under anyways. After I dug it up, I cleaned the walls, rolled water proofing on the walls, then, adhered 6mil plastic to the wall up to the grade and ran it down to the French drain area. When we backfilled, we also solved the slope issue by making sure the grade slipped away from the house for at least 6’ (12’ recommended). Usually the main problem causing water is the grade sloping toward the house, and lack of gutters that run the water away with the proper downspout. As far as walls in the basement, that stuff could cost you some significant time with all your slab drainage corrections etc. watch out for the lawsuits right now on mold etc. people are burning bridges and going for broke and you don’t want the chaos to take itself out on you for mold. Your best quick solution may be to make the basement off limits and lock it, put a dehumidifier in there (there should already be one) and find where the low spot is, bust a hole in the slab the size of a 5 gallon bucket and drop a good sump pump inside the bucket when you get it in the hole.

    2Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Jared Lane:

    Hello everyone. I have run into a situation that I haven't encountered before and was looking for some advice. We have been getting a lot of rain here in Ohio and one of my properties started having some pretty bad basement flooding issues. We have tried to rule out all the cheaper solutions that tend to solve the problems but this time it's more serious and will be a lot of money to repair properly. I don't have the money for the repairs right now so I am considering just telling the tenant they are welcome to break the lease and of course all of their deposits will be refunded, but they don't seem to want to leave. I don't want them getting sick and I also don't want to be liable for anything that can arise from mold if they continue to stay in the property. What should I do if I offer for them to leave with a refund and they don't want to?

    You can always sell to someone who does have the money to repair the basement.

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