Tenant concession for generator not working, and 2 day storm?

Question

Ok curious what some of you would do in this situation. The building is on well and septic and has a generator for storms that ensures heat, water, and emergency lights, no apartment electric. During Henri we had a 3 day outage because the power was ripped off the building and the generator kicked on and worked for 2.5 days and quit. It was determined it needs repairs and parts are on order. Last week another storm comes along and knocks out power for 2.5 days and no generator. Now there is no electric which is true all over because like 90,000 people are out but there is also no water for flushing etc. and no heat although its not super cold.

Would you have done any monetary concessions to the tenants for lack of habitability? If so would you have everyone get the same or do you do a % of rent.

Or do nothing?

Would you have done any monetary concessions to the tenants for lack of habitability?  If so would you have everyone get the same or do you do a % of rent.

Or do nothing?

John Underwood · Answer

No one else had power either due to storm. So no. Not your fault.

Colleen F. · Answer

@Joe Splitrock   I did make a concession equal for everyone.  Thinking along your rationale I don't consider the generator a nice to have. It is part of what I provide that others don't.   If it had not been so long to get it fixed,  so an long outage, and I didn't have a well I might have considered it a minor inconvenience.  True everyone is out of power but not everyone had no water.  Interestingly all my newer tenants were thank you very much and my old tenants were silent.

@Scott M. the generator helps everyone have water as it runs the pump. One unit does not get heat with the generator. They can all charge cell phones or other essentials in the hallway but no fridges.  I do point it out on the property tour because they see it and often ask and I just place 2 new tenant. Thankfully we have power now.   It took them two weeks to come check the generator and a week testing to decide what to fix and now we wait for parts so no more storms I hope.  Henri hit this property/area hard with alot of trees down and they are backed up on these kinds of repairs. @Robbie Young I do require renters insurance in the lease and in other cases of outage I have not compensated.   This situation I felt was a bit different then usual.

Scott M. · Answer

Finding out the more questions asked the more info comes : )

Does the generator help everyone or just certain tenants?  Were all marketed for having generator backup or no?  Is the problem solved yet or still ongoing?

As for water delivery, I would for sure keep that up and well done on you to have that ready to go in what is no doubt difficult situation for everyone, including you.

Scott M. · Answer

natural disaster/local emergency etc....would point to the sec of the lease that talks about that and not provide compensation.

Matt M. · Answer

While I am a super nice guy, and a responsible property owner, I think I would have brought them water if I could but not offered money back. It was an act of “god”.

A few years ago we had a major snow and ice storm that knocked power out to like 40,000 people. Most all of us had no heat. I had a tenants father call and say “my daughter has no heat, what are you going to do about it?” I said absolutely nothing, me and 40,000 others have no heat either. He said “ok thanks” and I never heard from him again. It sucks, but life happens.

Scott M. · Answer

If the crisis is over and it was 2 or 3 days I would do a daily rate 100%.  The reason I asked if the crisis was over is because if not, I would wait and see how long it lasts and what the total damages are for tenants.

For sure, day rate off rent and get the generator fixed as soon as you can.  I know you and 100 other people are in the same boat so it may take longer then say 2 years ago, but getting that fixed is key to your business for sure.

Again, good on you for delivering water.  A lot of landlords didn't I am sure.

Robbie Young · Answer

Keep in mind whatever you do now tenants will expect in the future and for similar things.  You need to decide on a policy for this and similar issues.  I would also suggest covering this in your lease.   This is why some landlords require tenants to get renters insurance because it can cover loss of use and if tenants fails to spend the $25-50/mo then it is at their liability.

Joe Splitrock · Answer

I would give them something. Simply because I believe in taking responsibility for both me and my tenant. I tell tenants that my job is keeping things working, your job is paying rent and taking care of the property. I do my job, you do yours. Even though it may be out of your control how fast that generator gest fixed, it is your responsibility. Two days is pretty cheap, but compensating them removes them saying later "remember when that generator broke" because you can say "remember when you didn't pay rent for either day it was broke".

That being said, if you gave them nothing, you are probably not breaking any law or liable for damages. What you are doing here is for customer service only.

Colleen F. · Answer

@Joe Splitrock  there was no real push back on the initial breakage because the tenants saw how bad the damage was from the storm and we finagled getting the power up sooner by flagging down a crew from down south who were driving by as soon as my electrician was done so it was a half day no generator.   Then it took two weeks just to get someone to look at the generator and diagnose the thing.  It is this time around there is some noise.  So it sounds like you would give each a pro-rata amount not the same for everyone.

Colleen F. · Answer

@Scott M.   proactively we brought water over for drinking and buckets of water for toilets.  Some are asking, some not.  I can't just do some though.  I have to go across the board if I do anything.

Tenant concession for generator not working, and 2 day storm?

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