What would you offer tenants?

If you had to do some repairs to the bathroom due to water leakage (only bathroom in the house) and the tenants did not have access to it during this time - about 3-4 days I think - what would you offer them as compensation?

We are planning to move back in later this year but I'd ideally like to do the repairs this financial year so we can claim it at tax time. It is not an emergency repair.

I was thinking of not charging rent for that week but wanted to get some other thoughts. The property manager has brought up the issue so I believe the tenants have requested this be fixed, as the PM wouldn't know themselves just by quick visual inspection.

Thanks

 

One week free rent is more than reasonable.
You could even get away with offering nothing because it's done within a short time frame.

 

One week rent free seems generous to me.

Legally your obligation might range from nothing (if its pretty much the minimum reasonable time needed to repair), to perhaps a 50% to 100% rent reduction for the affected days.

If it includes the toilet being out of commission it might be more likely to be 100% rent reduction, but really only for the affected days.

Shrug one week is nice and neat though.

 

Perhaps see what the tenants ask for first. Some are just happy to have it fixed and be done with it, or suggest some token amount. Give them that if they do.

Or, if they ask for a high amount negotiate downward.

If it went to tribunal, a week would probably be given so plus or minus that and you're not far off the mark anyways.

 

how about 2 slabs of beer!

 

If there is no working bathroom then legally the house is probably deemed uninhabitable. If it gets to the tribunal you would probably have to pay for them to stay at the local motel.

Unless this can be classed as an emergency repair (unlikely) the tenants can refuse permission for you to do the repairs during their tenancy.

At least a weeks rent remission would be reasonable. You may have to offer more if they dig their toes in.
Marg

 

I thought about this recently, thought I'd have to supply other accommodation, airb&b or something, at minimum one of those portable ones in the yard, plus free rent during time of inconvenience.

If they have no family/friends local, what are they supposed to do for a shower?

 

As @Marg4000 notes,the house is uninhabitable and the lease covers this eventuality - 100% rent abatement (or you could set up a temporary shower). Alternatively, you could pay for a week's accommodation nearby but continue to have the tenant pay rent for the period (so you keep the tax deduction and income).

 

Actually thinking about it, be better to have them outta the way at a airb&b while doing the reno, however if I was a tenant I'd be concerned about Tradies going through my personal stuff, knocking stuff off, dust everywhere, over my furniture etc

It's a tough one

 

A 25 visit pass to a swimming pool establishment that also happens to have showers and spa facilities? Tenant can have long showers there, wash hair etc. Tenant can have a swim. Discover a new passion for exercise. Tenant can have a spa.

 

Having get up early to drive to a swimming pool just to have a shower in the morning. Hmmm, still sounds to me like free rent is required.

 

Good points.
But am sure the ATO would dispute deductions......
(Sure, i had no water, gas or sewer connected during a 9-12 month reno& extension, so bought another place to reside in, but am still reqd to pay CGT on one property or the other "as l cant claim 2 PPOR" ) bugger

 

The whole point is that it was said that the repairs are not urgent. The landlord wants to do them during the tenancy for his/her own reasons - tax deduction for n this financial year.

Really no good reason to inconvenience tenants to such an extent.

Why not simply wait till the Lease ends as owner are moving back in.
Marg

 

Thanks for your replies - didn't expect to get so many! There is a bit to think about and I'm still waiting on some quotes so we'll see.

The tenants have brought this up twice in the 9 months they've been there so I don't think they will refuse to allow it - it just needs to be done in a way that minimises inconvenience (they don't know we'll be moving back in yet). The timing for the repairs was just an estimate on my end, I'll get more information about this today. I was thinking to offer one week free rent as this would just about cover 5 nights in a decent motel nearby for them for the same cost. I'll update you all when I have some more info

 

Depends on the location of the swimming pool in relation to the property, and the nature of the tenant. I've done this previously. The tenants were happy to do sponge bath for mornings and go to the pool for a shower, wash hair etc when they needed. They were excited by the idea of free swimming and spa because they had planned on using the pool anyway.

The tenant may also have friends or family very near by and deem it no inconvenience at all to use their shower for a couple of days. Some tenants are mortified by the idea of unnecessary expense to the landlord and are happy to be as helpful as possible in return for responsiveness to maintenance requests when they come up.

Again, it depends on the tenant. Not all tenants would be as co-operative.

 

Offer a daily sponge bath.

If you offer alternative accommodation what are you going to have to pay for if the bathroom renovation runs 2 weeks over time?

 

The main issue for them is the annoyance/inconvenience of managing the water leakage and cleaning it up.

I'm not trying to be sneaky in terms of the lease renewal. I don't know (yet) specifically when I will be moving back in. I'm currently waiting on a job offer to be finalised and to negotiate the start date, as I will initially be working from Sydney then moving - it could be anywhere from the middle of this year to the end.

The portable bathroom looks like a good idea in case the renovations take longer than expected. From another site, it seems to be $50/day plus install/cleaning fee. For one week, it's a little bit more than the weekly rent so it's fine and probably more convenient for them.

 

What exactly is leaking, minor repair?
What are they expecting, just to have the leaking fixed?