Slow repair from water damage - tenants asking for reduced rent

[Peter Burnside]

Had a pipe blowout almost three months ago. Kitchen and basement are torn up from the water remediation and the insurance company has not yet given the go-ahead for the repairs.  Tenants have put rent in escrow until the repairs are done and are asking for a reduction in rent for the duration of the incident.  Insurance will cover lost rent if the house is not livable, but will not cover an inconvenience loss/ reduction in rent.  What would your next step be?

[Richard F.]

Aloha,

What's the holdup? Code enforcement would probably call it uninhabitable and the Tenants need to go now, and insurance will pay the rent. If they really want to stay, then yes, deduct rent based on the LIVABLE square footage they rented, minus what is no longer livable.