How to handle tenant water damage

[Alison Zywicke]

I purchased an investment property in August 2021, tenants came with the property. They just reported that the ceiling in the living room is leaking below the upstairs bathroom. I called a plumber because I assumed it was a leak. The plumber informed me that the hand held shower hose was spraying water on the wall and all over the floor during every shower. All of the baseboards are rotted and the water has seeped under the lanoloum and obviously into the subfloor and the top of the drywall in the living room. My inspection report only listed "sealing juncture between flooring material and tub as a preventative measure", no mention of the faucet leak. The lease states to report leaky faucets immediately or the tenant will be responsible for damages. Insurance will not cover the damage. What's my first step? Get it fixed then charge tenant? They are wonderful tenants that pay rent on time every month, lease is up in a year. Please help.