Thank you for the additional replies, it is so greatly appreciated! I am likely overthinking this as Bob P. mentioned, however I am trying to be as informed as possible before finalizing our decision.
I was asked how much a few days rent reduced would cost, if it is 100% reimbursement over the course of the repair it would be just over $200.
Also, good point about it potentially being more than the estimated 3 days once they get in there, I hope not.
With all that being said, I am trying to be as unbiased and remove our “history” so to speak with these tenants regarding our decision for reimbursement, and making it purely about what is legally required and appropriate given the repair. Our relationship with them is not ideal, we have already had to serve them a cure or quit notice earlier in their lease term (approx. 1-2 months after moving in) due to multiple, egregious lease violations, however because they “cured” the violations could not proceed with evictions. It is unfortunately a rather complicated situation.