Tenant flooded my 2 family. Best options?

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Short version: my tenant (without my consent) tried to fill their own steam boiler, and ended up flooding my entire two family from the top down with dirty water from the radiators leaking through the radiator vents. I’m currently in the cleanup process with Servpro drying the place out, and moving forward there will be a lot more work to be done(carpet removal, opening walls to check for damage, insulation). Both of my tenants are on month to month leases currently so it would be easy to part ways with them by giving my one months notice. Which I’m currently thinking is my best option, since i won’t know the construction timeline and can’t make any promises on living space. Also, it’s only fair to them to let them pursue other arrangements; i would let theM go now if they wanted. I feel badly, but i don’t think it’s my responsibility to find them housing. One tenant is being very understanding and cooperative. The other(the one that caused the damage, ironically) is being very difficult. Giving me a hard time at every turn, attempting to deny me access to the contractors who are trying to make the house safe. I originally didn’t lay blame, or pursue damages from this tenant to reimburse my insurance deductible, but his behavior now is making me regret that. You try to be nice about it.... When all is done, I’d love to have tenant one back, but i can’t guarantee them housing at this point so that’s no given. Tenant two seems like the type to cause me a lot of problems, i think I’m going to post notice to end their lease, and may even consider a cash for keys situation (even though they should be giving ME money!) . Any input would be appreciated. Never been in this sort of situation before. Thanks, people.

[Greg M.]

Your lease (and possibly the law) should allow you access to the unit to make repairs. Inform them that you will need access every day from X AM to X PM until the repairs have been made and if they are unhappy about it they are free to leave. If they block access, contact the police non-emergency line and ask that an officer come out.

Given the fact they are being difficult, I would get them out ASAP. I don't know New Jersey laws and thought they were very hostile to landlords, but if you can legally get them out, do it. Perhaps the scope of repairs will make the place uninhabitable? One thing to consider, your insurance company doesn't just pay out the money and forget about it, they are going to look at your tenants for reimbursement of all the repair costs. They may look at your tenants and figure it is a lost cause and just eat the loss. However, they may feel they can get some money back and file suit against them. If your tenant declares bankruptcy over the debt, they could potentially stop paying you rent while it works its way through the court.

And absolutely take your deductible from their security deposit.