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Updated about 10 years ago,
Compensating Tenants for inconvenience and loss of use
Fellow landlords, how do you normally compensate tenants for loss of use of the property for a brief period - including inconveniences before and after it.
In addition, do you compensate different tenants different depending on their situations?
For example, I have a triplex that has evidence of drywood termites...which is not unusual in South Florida.
Without getting into details it seems termites are alive and active in two of the units, no sign of it in the third, doesn't mean it's not there. The building being a flat roof with no attic makes it impossible to do a good assessment. In one unit the termites are in the walls, in closet shelving, such that when it spray it's dropping every few days, the closets are basically not usable. Pest control experts recommended tenting.
So to tent I need to get all three tenants out for a few days. Not only that, they most likely have food items and medicine that need to be wasted unless they consume them all or take it with them during their brief "vacation".
How would you compensate your tenants?
On the number of days they can't use the property while it's being tented, I am thinking at least a prorated rent credit. So if they can't use it for 3 days, then say at $40 a day thats $120.
Would you compensate them for the wasted food items? Say a fixed amount, $50, $100?
Would you compensate them for lodging? If they have to stay at a hotel, some sort of a daily per diem? This is most likely a renter's insurance item, but I just took over this building and don't think any of them have it.
If their situations are different, would you compensate them differently? I am leaning to pay them the same, regardless of their individual situations.
One of them has two dogs that need to be kerneled. Would you pay additional for that?
If one of them can stay with a sister for a couple of days without a problem, where the other has no where to go but a hotel, would you compensate them the same, or different?
Looking for a way to fairly compensate tenants on situations like this, I guess it doesn't have to be termite infestation, it could be a major repair, or something that requires them to vacate.