Rent credit? How much?

[mixtim]

What is the name of your state (only U.S. law)? MD

The finished basement to our former home, now tenant occupied, had a pipe burst. My husband raced over there and helped tenants move their stuff and to meet with water abatement crew.

Needless to say, even though the pipe bursting was no one's fault and our insurer is covering, we feel horrible. This will deprive my tenants of use of the basement for up to a month and they will have to deal with hassle of contractors refinishing the basement.

Even though they have not asked, and they do have insurance to cover their things (although it seems our quick action helped preserve everything), we think it right to offer a rent credit. But how much? What percentage? The house has 3 finished levels. Only the basement is affected.

I realize this may not be a legal question (and don't want it to become that), but want to get an idea what is a fair amount to reimburse? We want to be generous, but not be idiots either.

 

[Cvillecpm]

NOTHING - stuff happens and tenant needs to have renter's insurance...don't offer and say no if they request!!

 

[Zigner]

NOTHING - stuff happens and tenant needs to have renter's insurance...don't offer and say no if they request!!

1/3 of their unit is uninhabitable. I think your position is not proper. I think the OP is wise to consider reducing the rent, but perhaps a better way would be a 1-time payment with a release from the tenants...

 

[FarmerJ]

If your tenants will not have the use of the unit for a month you might consider offering to fully return the deposit and un used rent days for this month if they would like to start from scratch and find a new place to live. Other consider offering a signed letter of credit giving them credit for X number of days of the month they are not able to use /live in the unit so say they are able to move back in on July 8 they would get the number of days of Junes rent that was not used as credit making Julys rent payment smaller. If you feel the need to do more maybe 100? 150? more in credit against aug rent payment ? I wouldnt make it huge though other wise your setting your self up so every time something goes wrong the tenant will expect something from you.

 

[Alaska landlord]

Offering them money is a huge mistake. Offer them movie tickets and dinner. Basement leaks or floods are expected when you decide to live underground.

 

[Zigner]

Offering them money is a huge mistake. Offer them movie tickets and dinner. Basement leaks or floods are expected when you decide to live underground.

Well, if the tenants accept that, fine...but do you think they'll sign a release against future claims?

 

[Alaska landlord]

Well, if the tenants accept that, fine...but do you think they'll sign a release against future claims?

There is no claim or condition for one. Besides, they have already been compensated.

 

[Zigner]

There is no claim or condition for one. Besides, they have already been compensated.

Rent: $1,200 per month.
Loss of use of 1/3 of the unit: $400
Dinner & a movie: <$100>

Balance remaining: $300

 

[BL]

Offering them money is a huge mistake. Offer them movie tickets and dinner

Oh boy , now that's one for the LL/tenant Laws . If you can find such Law , please post it .

 

[Alaska landlord]

Ha Ha. I was thinking 5.00 for a movie and 30 for dinner.
Most leases have wording to the effect that tenants are encouraged to purchase renters insurance and to the effect that the landlord is not responsible for damages out of their control.
In addition, the courts will not hold a landlord liable for damages arising of a natural disaster. If the tenant can prove this was a case of negligence or that the landlord misrepresented the possibility of a flood, then the tenant can sue. In this case, the landlord took care of business in a reasonable amount of time, so there is no abatement that the tenant can claim on that category. Also, the tenant has already been compensated for the loss of personal property which leaves nothing to sue for.

 

[Zigner]

Ha Ha. I was thinking 5.00 for a movie and 30 for dinner.
Most leases have wording to the effect that tenants are encouraged to purchase renters insurance and to the effect that the landlord is not responsible for damages out of their control.
In addition, the courts will not hold a landlord liable for damages arising of a natural disaster. If the tenant can prove this was a case of negligence or that the landlord misrepresented the possibility of a flood, then the tenant can sue. In this case, the landlord took care of business in a reasonable amount of time, so there is no abatement that the tenant can claim on that category. Also, the tenant has already been compensated for the loss of personal property which leaves nothing to sue for.

Ok, I see the problem. You are talking "damages". I am talking RENT. Tenant has lost the use of 1/3 of his unit for a month. This is through no fault of the tenant. I do agree with you about damage to pers. property.

 

[Cheeseknife]

Don't offer them anyting as it relates to property damages, however since 1/3of the unit is no longer usable why not just take 33% off of the rent until the house is restored to original condition?

 

[mixtim]

Thanks everyone. I'm thinking that the most rational way to handle this is just to give them back or credit toward next month's rent, one-third of their rent.

On another note, since so many on here are experienced LL or contractors, about how long should I expect the abatement to take? We are talking dry basement out, replace drywall, recarpet and repaint. The contractor that came out to immediately pull up the carpet and gut the drywall said one month at the very, very most. But they are not going to be doing the drywall or recarpeting.

I just want to know what's reasonable so I can push my insurer if necessary.

 

[Alaska landlord]

Thanks everyone. I'm thinking that the most rational way to handle this is just to give them back or credit toward next month's rent, one-third of their rent.

On another note, since so many on here are experienced LL or contractors, about how long should I expect the abatement to take? We are talking dry basement out, replace drywall, recarpet and repaint. The contractor that came out to immediately pull up the carpet and gut the drywall said one month at the very, very most. But they are not going to be doing the drywall or recarpeting.

I just want to know what's reasonable so I can push my insurer if necessary.

The problem you're having is that you are mistakenly thinking that your tenants are your friends or that your generosity will count for anything in the long run. By giving a rent abatement when none is asked for, you are creating the condition for future claims. Your contractors will always give you an ideal completion job, Should they take two months to complete the job, your tenants will expect another 400.00 as compensation. If hard times should befall them, what's to prevent them from sabotaging your pipes in hope of making a few fast bucks? You can expect that from here on end, they will hit you up for money whenever an appliance fails to operate properly. For example is the washer goes bad and it takes you a week to either repair or replace it, they will want compensation for the money they claim to have spent at the Laundromat
I will encourage you to visit the website Mrlandlord for advice from real landlords.