Tenant wants us to prorate rent due to construction

I am a landlord who does my on PM.

I got a call from our tenant last week saying the dishwasher was leaking water, and had been doing so since Thanksgiving. I went over and the wall behind the dishwasher for about 15 ft was completely soaked, the baseboards were splitting from the wall, etc. I called a water remediation company and the guy said they would need to pull out the drywall to see how much damage there was, but it looked pretty extensive. He said worse case is they will need to pull out the cabinets next to the dishwasher and completely replace the drywall and cabinets. When I told the tenant that this would be an extensive project requiring days (if not a couple of weeks) to finish, they started having a cow saying they couldn’t live in a “construction zone” and be without “their” dishwasher for so long, and wanted for us to prorate their rent while they live in such “limited” conditions.

Now, aside from the fact that they could be held liable for the damage since they admitted to using the dishwasher several times knowing it was leaking, and didn’t call us for a week later, what do you think I should tell them? I already told them I won’t prorate the rent, but they insist that I should compensate them for (1) having to live in those conditions, and (2) having to take off work so they are there when the construction workers are there.

There is a section of my lease that says that the tenant will take prompt action to eliminate any condition damaging the property and immediately notify the landlord. Since that is a provision of the lease they are in violation of the lease and can be evicted for that. That being said, I would make some concession because of the hardship. I never reduce rent for a concession, I may buy them a turkey, or even a diamond ring but you never want to give them any break on paying the total rent on the first of every month. If I did do a prorate it would be on the very last month of the lease.

Thanks - good idea. The ironic thing is they were late this month (December) by two days, and I told them they were late and needed to pay the late fees (during the same conversation I told them about the construction that is needed). They haven’t been late before, and it was soon after I told them this that they started saying they wanted compensated for all the hassle they’ll be dealing with. I got the rent check today (minus the late fees), so I may just tell them I’ll waive the fees or use THEIR $50 to buy them a turkey + Target gift card.

Your rents are too low.

Renters who are paying retail don’t let leaks go for three months. They’ll call you if an ant sneezes on their toast.

In this case, the tenant was negligent. However, I can’t imagine a leaking dishwasher doing this much damage (obviously, I haven’t seen what’s happened in your case), over even this long a time. If I can’t see the damage, there is no damage…!

Sheetrock is fairly durable if left to dry… Just saying. Nail the baseboard back to the wall. Spackle over any drywall damage with water resistant mud; paint it, and forget it. If you discover, after the tenant moves, that you’ve got remedial work to be done…then do it while the house is vacant.

Isn’t fixing the leak enough of a cure here, without removing cabinets and unbuttoning the wall?

Unless insurance is covering this extra rehab work, I would just tack it back together until either time to resell, or time to re-rent, and then only if absolutely necessary.

If the tenants have otherwise behaved, I would make a concession on the rent. Why not? Chalk the costs up to vacancy and credit losses for the year. Crap happens…

Meantime, it keeps your renters happy; gives them no reason to mess with you; maintains peace, tranquility and equilibrium.

Part of me would just want to put a fist through the renter’s car window for allowing this to happen. However, I would have to blame this situation on myself for not providing the renter an incentive to notify me in a timely manner of these situation(s). And how is this done, exactly, you ask.

Keep the rents at retail.

Do not compensate them for anything. They do not deserve any free rent or money from you.

If I were a jury…I would say the tenant is 50% responsible for the problem, because they failed to report it on a timely basis AND also that the owner of your rental property is 50% responsible … just because the dishwasher leaked. Though that may sound irrational - it’s not. You need to think like an insurance company. You have to compare it to say … an electrical short in the attic causing a fire…it’s not your fault personally of course, as you didn’t cause that electrical short, but any insurance company will say it’s the building owners fault - whether that is you personally or your LLC/corporation. If the stove you provided the tenant burns the place down due to an electrical short (and it’s not the tenant’s neglect) OR your water pipe in the wall leaks & causes damage … again the insurance company will say it’s the building owners fault. That REALLY will matter if you have a condominium or townhome “accident” and an adjoining property is damaged, or if the person who lives at your property has a personal injury or property damage and they choose to litigate.

But, not to get off track, I would say if there is any chance of mold … I would fix the water damaged areas NOW and bill the tenant’s deposit for the repair costs (minus the new dishwasher expense) - after they move out - and if that eats the entire deposit … I would not go after them for the rest unless it’s ungodly expensive. I could get something fixed like you described for less than $500, including putting in a new / basic dishwasher.

If there is NO chance of mold … aka you let it sit for a couple days and it dries up just fine … I would put in a new dishwasher, and fix the cosmetic stuff after they move out. And again, bill their deposit for the damage (minus the new dishwasher expense) .

Good luck!

There are also clauses in our lease that state the tenant shall immediately notify the landlord of all hazards as well as another one that states the tenant shall take reasonable measures to mitigate damages in a case like this. If they don’t take basic action, they are responsible for the resulting damage. If the leaking did actually start in the last couple weeks, there’s probably not any structural type damage and it will be limited to drywall and any thin wood. If this has been going on for awhile, there may be rot on the studs. I would get it fixed now rather than wait. The tenant shouldn’t HAVE to be there for repairs. It shouldn’t take weeks. They’re being drama queens as many tenants like to do. Fix it, tell them to suck it up for a few days, and move on…period. Crap happens. If there were financially responsible to own their own home, they wouldn’t have anyone to blame and try to get extra money out of…don’t let them extort money or free gifts from you.

A weeks worth of water - ESPECIALLY if it’s not from a leak in the supply shouldn’t cause enough damage to the house to warrant sheetrock removal. I would pull the dishwasher and put a fan in there to dry everything out and ask the tenant to leave the cabinet door open for a day or two.

After it’s dry, paint as necessary and install a new dishwasher. There are alarms that will go off in the presence of even very small amounts of water.

Oh, I wouldn’t prorate anything. I would consider raising the rent in March or April. I don’t like to do changes over the winter to keep vacancy down. It’s hard to get tenants around christmas.