I have a house rented for $2k/month for 3 years. It is a 3/2. We are currently in the third year of rent. I have not increased their rent (although I should have). The house is rented to college students, with the parents paying and dealing with everything.

The house had a burst pipe and water damage in the shared bathroom in August of 2023. I relocated the tenants to an Airbnb for $1k while it dried out and the plumbing was replaced. Insurance wrote a check for much lower than what contractors were bidding for restoration/remodeling.

The trouble was finding a contractor within budget. We got varying bids of quality and prices. It was hard to gauge. Eventually we just decided on remodeling the bathroom where the original pipe damage was and leaving everything else be.

There is no loss of use. There was a hole in the wall where the drywall was broken to access the pipes. I agree it looks ugly.

Since the kids are in school, the only real window to remodel was in summer. Unfortunately it was hard to find a contractor during the summer who would take on this "small" job (~$3k). The scope of the work also changed; below the toilet the subfloor has started sinking and needed to be replaced.

Anyways, we are finally able to start work in October. My intent was to use the local reputable contractor (think of the guys sponsoring sports). Again, the job is too small but the general contractor gives me his subcontractor to use. The subcontractor finished and did a fine job...but he took too long. It took him 3 weeks when originally he gave me an estimate of a week. I am certain the subcontractor had other jobs and this was put on the back burner. I had to put the two shared-bathroom kids in a hotel for a total of 7 days at the cost of $450. The kids could shower but not use the toilet. One of the kids just lived with his gf for a bit and other found a toilet somehow. The master bathroom is still working, but I presume for some reason the kid in the master bath wouldn't share.

I was doing all I could to get the contractor to finish the job on a weekly basis. I was at his mercy, and I was concerned the contractor would run away. It's not like I had him on other jobs.

The remodel is now finished. The crux of the issue is that the tenants (the mothers) are asking for a rent discount for October. I'm inclined to say no, especially because my margins have gone down significantly with increased property tax and insurance, and I haven't raised rent. Additionally, there was still a fully functioning bathroom during that time. They are asking for $1,500, which seems egregious to me.

Lastly, I have been lenient with the tenants regarding late rent. I'm not really concerned they won't pay (they all seem to be wealthy). I have not charged them late fees, but in totality, it could excess $1k. I am also considering selling the property next spring so this would be the last lease and I don't to play nice.

Should I give them a rebate? How should I calculate loss of use for 3 weeks? Can I subtract the cost of the hotel?

Any advice is appreciated, thanks!