Rental Unit on fire

[llee]

Hi,

My rental unit (condo townhouse) was on fire this afternoon. The kitchen was completely damaged, and the living room and bedrooms upstairs were smoke damaged. My insurance and the condo board insurance will work to get this fixed. The unit will need to be completely renovate in the next 2-3 months.

The root cause is to be determined, but it`s likely a problem with electrical wiring (infrastructure) - not my tenants` fault. They were not at home.

My question is about my tenants. My lease agreement stated that they are strongly encouraged to purchase tenant`s content insurance. Unfortunately, they didn`t buy it. Now they have to live with their parents for the time being. They paid full rent February 1. Now the dwelling is not livable, am I obligated to return part of their rent? Are they still on the hook on the 1-year lease (ending September 2010)? How would you handle this situation?

 

[ontariolandlord]

QUOTE (llee @ Feb 10 2010, 08:48 PM) Hi,

My rental unit (condo townhouse) was on fire this afternoon. The kitchen was completely damaged, and the living room and bedrooms upstairs were smoke damaged. My insurance and the condo board insurance will work to get this fixed. The unit will need to be completely renovate in the next 2-3 months.

The root cause is to be determined, but it`s likely a problem with electrical wiring (infrastructure) - not my tenants` fault. They were not at home.

My question is about my tenants. My lease agreement stated that they are strongly encouraged to purchase tenant`s content insurance. Unfortunately, they didn`t buy it. Now they have to live with their parents for the time being. They paid full rent February 1. Now the dwelling is not livable, am I obligated to return part of their rent? Are they still on the hook on the 1-year lease (ending September 2010)? How would you handle this situation?
It really depends on them.

Can they put you through the wringer in Ontario? Yes. Most certainly. Not only will you have to compensate them for their moving, their current costs.....but also for any difference in rent for the next place they move in to.

 

[ontariolandlord]

QUOTE (ontariolandlord @ Feb 10 2010, 09:53 PM) It really depends on them.

Can they put you through the wringer in Ontario? Yes. Most certainly. Not only will you have to compensate them for their moving, their current costs.....but also for any difference in rent for the next place they move in to.


Why isn`t there a Private Message feature on this forum?

 

[llee]

QUOTE (ontariolandlord @ Feb 10 2010, 10:31 PM) Why isn`t there a Private Message feature on this forum?

Thanks for your feedback. I think you need to be a REIN member to use PM feature. You can email me at ottawabestlandlord (at) gmail (dot) com. Thanks.

 

[housedoc]

QUOTE (llee @ Feb 10 2010, 10:48 PM) Now they have to live with their parents for the time being. They paid full rent February 1. Now the dwelling is not livable, am I obligated to return part of their rent? Are they still on the hook on the 1-year lease (ending September 2010)? How would you handle this situation?

You`re lucky you don`t have to put them up in a hotel!
How can they be on the hook for the lease when the unit is not livable due to no fault of their own?
If it`s clearly not their fault, of course you should return Feb. rent. At the very least, pro-rated to the day of the fire.
It`s a no brainer.

 

[RedlineBrett]

You may be covered for lost rent through your insurer... and you may be covered for whatever payments you have to make to these tenants due to the damages they`ve suffered. Ask your insurance co.

 

[invst4profit]

I would refund there money for the remainder of the month and cut them lose.
Since they have moved back home I would guess they will regroup and move on to another place.

 

[HeatherBrandt]

QUOTE (llee @ Feb 10 2010, 08:48 PM) Are they still on the hook on the 1-year lease (ending September 2010)? How would you handle this situation?


I wonder what would happen if the tenants insisted you owed them a place to live at the same rent until the end of the lease? Would they have a case?

 

[brentdavies]

Your lease with the tenant has become "Frustrated" due to causes beyond the control of either party. You cannot provide a suite, and the tenant cannot live there.

Your property insurance should cover the loss of rent for the repair period.

Tenant insurance will cover the tenant`s belongings and out of pocket expenses to relocate, if they have tenant insurance.

Yes, refund the rent, and security deposit in full ( if you are Alberta), or last month`s rent or whatever the local rules say.

 

[llee]

QUOTE (brentdavies @ Feb 12 2010, 08:21 AM) Your property insurance should cover the loss of rent for the repair period.

Tenant insurance will cover the tenant`s belongings and out of pocket expenses to relocate, if they have tenant insurance.

Yes, refund the rent, and security deposit in full ( if you are Alberta), or last month`s rent or whatever the local rules say.

Yes, I have offered them the refund of this month, and the return of the last month rent. I also offer them the same suite in brand new renovated condition, should they decide to return in 2-3 months.

This is a very frustrating situation between the tenants and myself to get everything sorted out, while my insurance and the condo board`s insurance are still talking between them who are responsible for what. All I want to get things sorted out ASAP and have the unit renovated and rented out!!