Housing Tenants While Repairing Property Damage
Great and TIMELY post about what to do with a tenant when properties need to be repaired. Many property managers in states like Florida have options where the property manager can declare that the tenant needs to depart and their lease can be terminated so that tenants can not hold the property hostage if the insurance company OR city/county declare it uninhabitable.
As a landlord, you are always required to provide a tenant with a minimum standard of living, including the basic amenities like plumbing and electricity. If ever there is major property damage or a widespread maintenance issue that makes a residence unlivable, you’ve got to provide your tenant with alternative accommodations. The only time you may not need to do this is if damage is caused by vandalism or disaster.
Sure, if a plumbing job or the like is only going to take a day or two to complete, your tenant may volunteer to go stay somewhere else. Or maybe they’re willing to make arrangements with a neighbor to use their toilet and shower. However, this can only be expected for a temporary situation, not for a longer term one. You cannot leave your tenants without basic necessities for many days.
So, if that’s going to happen, do you know what your next options are?
- Put your tenants up in a hotel – a hotel may be able to accommodate your residents for a time while you get necessary maintenance done.
- Rent them a short-term property – if you have tenants with pets or you rent to a large family, then you may need to consider a short-term property rental. After all, a hotel will only be so comfortable (if the pet is even allowed), and it will ultimately cost you more, especially if the project runs long.
- Plan maintenance around a known holiday – if the maintenance project can wait and you know that your tenant will be going on vacation in the near future, then the repairs can be done around their schedule. This means that there is no additional cost for you to put them up somewhere, and you can have the work completed without any major interruptions.
- Ask them to terminate the lease early – if your repairs are likely to take a long time, hotels and rentals can get expensive. Consider asking your tenants if they’d be willing to terminate the lease early. If you have a good relationship with your tenants, this may be a viable option.
Remember, if the issue isn’t caused by either vandalism or a disaster, you cannot expect that a tenant’s rental insurance will cover their accommodations. The only compensation they will receive is the replacement value of any items lost or damaged in a maintenance related incident. Your own homeowner’s insurance may provide coverage, but you will need to pay out of pocket so your tenants can live comfortably while you take care of business!
Zach Devine, Marketing
RentApp.com (A Service of AppFolio)
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