Rental Property Flooded What do you do with Tenants

[Matthew Gullo]

I have several clients that own rentals and one of them had a few properties flood in the recent Harvey hurricane that just hit Houston. I wanted to help them by asking for advice on what to do with the tenants until the home is cleaned up. Do you let them out of the lease? What do you feel is your landlord responsibility? Any other tips or advice on the situation?

[Robert Leonard]

The correct answer is a matter of the law.  Seek legal counsel or the right answer.

There is no quick fix for dealing with a flooded house.  Open it up and run fans and dehumidifiers for about 8-12 weeks and you will start to get to the moisture content levels that allow you to start replacing insulation and closing walls.  Some forms of sheathing create additional extensive repair costs/time because that sheathing may have to be replaced too.  Can you believe there is such a thing as gypsum sheathing!  The same stuff that we know as sheetrock used as sheathing on the outside of the framing!  It exists!

The tenants will get FEMA assistance and relief. As a non-owner occupant, if you don't have a flood insurance policy, you will only be offered SBA loans (based on eligibility/qualifying) unless some other special type of relief is created that is not part of the usual programmed relief.