Advice on tenant move-out after a fire incident

[Andy K]

Hi folks,

We wanted to get some advice regarding a situation we have at a rental property we own. In mid-August, we unfortunately had a fire in the attic of the rental home. The tenants living there called the fire department, and the fire damaged part of the roof structure as well as the electrical in the attic, etc. The city red-tagged the home, and the electricity and gas were turned off. The code inspector informed the tenants that no one is supposed to be living at the property.

The tenants have told me that they have been living at a hotel and with some relatives since that time. They used to carry rental insurance, but they did not renew the policy last year. Now it's already been a month since the fire happened, but the tenants have not moved out their stuff from the home yet. They have all of their big furniture like sofas, cabinets, etc and some of their other belongings still at the home. They tell me that they are not able to find a new rental to move into due to their bad credit and not having enough for their move-in costs. We have told them verbally that the existing lease has been terminated since the home has become inhabitable.

My insurance company tells me that they or I are not responsible for any costs for tenant accommodation. The renter's insurance policy is supposed to pay for those expenses.

The mitigation company that we have hired for the fire restoration is telling us that they cannot begin any work at the home till all of the tenant's belongings are out of there. Because even if they do the clean-up, the tenant's belongings will contaminate the home again. Also if they begin the work, and the tenants go in and out of there, it can be a safety hazard.

We are seeking advice on what we should do to get the tenants to move their belongings out of the home. Should I send them a written lease cancellation notice? Within how many days do they need to vacate the home after receiving such a notice? I am holding on to one month's rent as part of the security deposit, which was paid at the time of lease signing. I am hesitant to return the security deposit to them before they completely empty the home of their belongings, since that is the only leverage I seem to have.

Really appreciate if folks can suggest what we should do here - how to get the tenants to move their belongings out of the home, so that the work can begin at the property.

Thanks for your help.

Andy.

[Kim Meredith Hampton]

Tell them they can have their deposit back to help with relocating once they get their personal items out of the house. Move everything into a storage unit