Uninhabitable property

Discussion in 'Property Management' started by QbiK Evolution, 11th Jun, 2018.

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  1. QbiK Evolution

    QbiK Evolution Well-Known Member

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    Hi everyone was hoping some people can give me some pointers here. I have a investment here in Perth and I got flooded by storm water runoff from the streets on Sunday morning. My tenant wants to break his lease as he thinks it's unliveable.im just wondering who determines what makes a property uninhabitable. Currently the damage is one bedroom has had the carpets flooded and the df skirting boards will need to be removed. Also there is alot of mud over the driveway and around the house that needs to be cleaned up. There is abit of a smell because of the flooded carpet but my thoughts are it can probably be replaced within a couple of days. Does anyone have any advice on this.
     
  2. Propertunity

    Propertunity Well-Known Member

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    Let your PM handle it. Your Contents and Landlord insurance company will also advise you.
     
  3. QbiK Evolution

    QbiK Evolution Well-Known Member

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    I self manage so it's more about working out what is classified as uninhabitable.
     
  4. John_S

    John_S Mortgage Broker

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    Do you really want to force the tenants to stay if you self-manage? I feel like this is something that could cause much more of a headache than simply finding a new tenant once the repairs are done.

    Especially if the vacancy/repairs are partially covered by LL insurance.
     
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  5. willair

    willair Well-Known Member Premium Member

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    I have been through a few floods ,and you may have sewage backflow in the mud and also within the house carpets ect ,that alone would make the livings area's uninhabitable.. ..
    Just hope you have landlord insurance that cover's flood,and make sure you have a current up to date lease in place as you self manage ,and that's the first question the insurance company will ask you ..imho..
     
  6. thatbum

    thatbum Well-Known Member

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    I'm surprised you don't want to terminate the tenancy.

    If you keep them on, you might be up for considerable costs in compensation to the tenant - just keep that in mind.

    Anyway, uninhabitable in this context would be an objective legal test taking into account all the circumstances. Its possibly a lower bar than the plain meaning of the word might suggest however.

    Have you been down there and assessed it thoroughly yourself?
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    @QbiK Evolution - Are you providing alternative accommodation until the works are complete?
     
    Last edited: 11th Jun, 2018
  8. marmot

    marmot Well-Known Member

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    You could just try and tempt them with a week or 2 of free rent.
    If there not happy with that ,let em go.
    The other issue is electricity and water dont mix.
    If the inside damage is only minor and limited to one room with minor water ingress just get the carpets up real quick.
    Dont forget to isolate any power sources in the area.
    Go down to bunnings and buy a cheap wet/dry vacuum(ryobi,oziti etc) or soak it up using towels and then hire an industrial blower/heater(Bunnings,Kennards ets) and dry out the room completely and relay carpet.
    It also depends on your insurance excess, do you want to keep the tenants and is their any chance of a claim against your local council or the water corp if the stormwater drains were blocked or unable to cope.
    There certainly has been a good amount of rainfall over the last few days , but nothing that is extraordinary.
     
  9. hobartchic

    hobartchic Well-Known Member

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    Let the tenants go and give them back their bond. Of course it's uninhabitable!
    Call your insurer and ask for an assessor to advise.
     
  10. tobe

    tobe Well-Known Member

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    Time to get a managing agent.

    For me it was when the neighbours rang me about the burnouts in the street and rent arrears.
     
  11. QbiK Evolution

    QbiK Evolution Well-Known Member

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    Thanks for the comments.
    So far we've had someone out to suck up all the water from the carpet and set up drying fans in the house. I have been told by the builder that some one will be out by wed and have the old carpet removed and skirting boards that are affected removed and beginning the cleaning up of the outside area. Ive offered to give them back their rent money for the next two weeks so they arn't out of pocket.

    Thankfully they have family locally so are staying with them until it has been sorted. I am hoping that once the carpet has been removed and the cleanup has started that they will think about staying on. They have been good tenants so far so ive tried to be as helpfull as possible. I would much prefer to keep them on as the rental market here in perth is atrocious and i have no idea how long it will take to find someone else and how much less it will be per week.

    I will just wait and see how it falls in a couple of days. I was really just wondering how or who is to determine what is considered uninhabitable. If it was my house I would still be living there. But that's my personal opinion.
     
  12. hobartchic

    hobartchic Well-Known Member

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    Technically, and you would have to double check, it would likely fall under the public health act which would likely mean the legal order would be placed with the local council under the auspices of the state government. Prior to that, and more practically, your insurance assessor and/ or a builder inspector would make that call.
     
  13. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    We would always put up for a lot when it's our own place but when you are paying for a place and it's not 100% normal/ok/as it was then there is room for negotiation and compensation.
    You mentioned that one bedroom is not useable - is that the only bedroom?
    Is this an event that your landlord insurance will cover - ie compensating tenants, providing them with other accomodation?
     
  14. Gockie

    Gockie Life is good ☺️ Premium Member

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    I found in Sydney when I had sewage backing up the pipes in an apartment block (completely gross btw) my tenants were very reasonable and I had to pay compensation for some damaged furniture of theirs plus about a weeks rent due to the flooding. I would have gotten some reimbursement from strata and/or insurance but quite possibly I may have been out of pocket too - it was a few years ago now so I don't recall.

    I personally think if the carpet gets flooded like that, it might be better to replace that carpet. My tenants had a 5 yo son and a baby crawling around too - just gross that a kid might have to crawl on that. But for whatever reason the insurance decided that they would just thoroughly clean the carpet rather than replaced. (Though I think the final cost for cleaning the carpet was equivalent to a carpet replacement!)
     
    Last edited: 11th Jun, 2018
  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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  16. hobartchic

    hobartchic Well-Known Member

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    Building Code of Australia allows for the need to deem a property uninhabitable also. The local council makes the order if a report is provided by a qualified building inspector. The BCA relates to public health acts that go back to turn of the twentieth century.
     
  17. QbiK Evolution

    QbiK Evolution Well-Known Member

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    Thank you westminster that article was very helpful.
    Don't worry carpets and any water damaged goods will be replaced. I'm just trying to make sure the house is liveable asap. The building assessor has been out and everything is safe just dirty and grimy.

    Again thanks for all the comments I'll let everyone know how it turns out for future reference.
     
  18. thatbum

    thatbum Well-Known Member

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    No 'uninhabitable' in a tenancy sense doesn't only mean unfit for habitation in a public health or local council sense - although those are also ways it would meet the bar.

    As I said, the bar is somewhat lower than most would think, and this sort of scenario might fit, depending on the specifics.