Compensation for no hot water?

[neil100]

Hi,

One of my IP's has been without hot water
for a week. This is a brand new property, so I have
had a new Rheem unit installed. There was a delay because Rheem initially tried to replace a part, but it failed after a few hours, hence the new unit being installed.

The tenant is now asking the PM about a rent credit
as compensation.

Are there any guidelines covering this?

Thanks all,
Neil

 

[Propertunity]

Are there any guidelines covering this?

Yes there are guidelines. It's called the Resi Tenancy Act. They get nothin'

Of course they could always take a day off work to go to the Tribunal to try to get $50 off you. Good luck to 'em.

How are they financially disadvantaged? They surely could heat the electric kettle and wash their hair in a bucket or the laundry tub?

The dishwasher still heats its own hot water. They should be washing their clothes in cold water anyway.

What's your PM reckon?

 

[marg4000]

The tenant is certainly entitled to a rent reduction if it has been more than a week without hot water. Your PM should be able to offer advice as to an appropriate amount.
Marg

 

[neil100]

Yes there are guidelines. It's called the Resi Tenancy Act. They get nothin'

Hi Alan, I did scan through that and couldn't see anything specific (only gave it a quick scan through though!)

What's your PM reckon?

Well, I have a sneaky suspicion that the PM might have hinted to the tenant that they should seek some rent reduction. Cant prove it, but just have a feeling after some of the discussions.

The tenant is certainly entitled to a rent reduction if it has been more than a week without hot water.

Hi Marg - is that in the NSW tenancy act? It has been 8 days, so if what you say is the case, then I wonder if it just a pro-rata sort of calculation?

Your PM should be able to offer advice as to an appropriate amount.
Marg

Yes, we will be discussing it tomorrow.

Look, I am not trying to weasel out of anything, just want to do what's actually required of me as a LL.

Thanks
Neil

 

[Propertunity]

..... just want to do what's actually required of me as a LL.

Jack up the rent!

 

[neil100]

Jack up the rent!

Yep - that'll be next month

 

[lizzie]

wellllllll - from a tenant point of view i'd be really razzed off if i didn't have hot water for over a week. i think you tenants have been more than understanding and some form of compensation wouldn't hurt.

personally i'd be really ropeable at rheem - how the hell did it take them 8 days to fix/replace a brand new hws! they should have been out there next day for the part - and then next (if not same) day to replace when the part failed.

 

[neil100]

wellllllll - from a tenant point of view i'd be really razzed off if i didn't have hot water for over a week. i think you tenants have been more than understanding and some form of compensation wouldn't hurt.

personally i'd be really ropeable at rheem - how the hell did it take them 8 days to fix/replace a brand new hws! they should have been out there next day for the part - and then next (if not same) day to replace when the part failed.

I hear you Lizzie! I'm happy to compensate, just wondered if there was a formula or something for calculating it, or whether it was just negotiated between the parties?

As for Rheem, well yes, they haven't exactly been efficient or forthcoming in helping getting it fixed quickly.

Neil

 

[kathryn d]

Yes there are guidelines. It's called the Resi Tenancy Act. They get nothin'

Of course they could always take a day off work to go to the Tribunal to try to get $50 off you. Good luck to 'em.

How are they financially disadvantaged? They surely could heat the electric kettle and wash their hair in a bucket or the laundry tub?

The dishwasher still heats its own hot water. They should be washing their clothes in cold water anyway.

What's your PM reckon?

Exactly !!
As long as you endevour to have the problem fixed, I don't believe you can be held responsible for the waiting for parts, or reasonable delays caused by tradies.
If you start compensating for this, it will become a slippery slope.
What the tenant will actually want, will have nothing to do with the value of the inconvenience...
They will want the rent for that week waived..and give no consideration they have a roof over their heads. Assuming the bank owns more of this property than you.. they certainly won't give you a discount on your mortgage.

 

[Luv2Travel]

If you are doing everything in your power to have it fixed ASAP then I don't see why compensation would be required. Wonder what these tenants would do if this was their own house and the HWS went, who would they seek compensation from? Rheem... goodluck to that!

 

[Ausprop]

for every loss you make just think about the capital gains you are making. pay them the compo and say 'thanks mate, you just made me x bucks!'. It's like the old real estate trick they teach... if you call 100 people you will get a listing, so for the first 99 that tell you to @$% off you thank them for making you $100

 

[rupert]

I hear you Lizzie! I'm happy to compensate, just wondered if there was a formula or something for calculating it, or whether it was just negotiated between the parties?

As for Rheem, well yes, they haven't exactly been efficient or forthcoming in helping getting it fixed quickly.

Neil

Put yourself in the Tenant's shoes and seriously consider what you would consider "reasonable" given the circumstances.

There is no formula for this sort of thing (called "rent abatement") because it's really individual to the case. How much pain and suffering did the Tenant's family during this period? If it was during the wet/cold spell that have come through Sydney these past few months then I would think nothing short of free rent for the period of inconvenience (from the time the replacement part broke to the time when the water was running again) would be reasonable for the Tenant.

 

[travelbug]

Yes there are guidelines. It's called the Resi Tenancy Act. They get nothin'

Of course they could always take a day off work to go to the Tribunal to try to get $50 off you. Good luck to 'em.

How are they financially disadvantaged? They surely could heat the electric kettle and wash their hair in a bucket or the laundry tub?

The dishwasher still heats its own hot water. They should be washing their clothes in cold water anyway.

What's your PM reckon?

Year sure they are not financially disadvantaged but I'm sure as hell I wouldn't be happy if I couldn't have a shower for a week.
P.S. I wouldn't fit in a bucket.

 

[Ausprop]

Year sure they are not financially disadvantaged but I'm sure as hell I wouldn't be happy if I couldn't have a shower for a week.
P.S. I wouldn't fit in a bucket.

how is this different to if you owned the place? It's like a rainy day... doesn't make you happy but that's life. i like the attitude of the earlier post - tell them to ring Rheem.

perhaps you could say "your request for compensaton has been forwarded to Rheem for their due consideration and i will advise the outcome"

 

[Ace in the Hole]

If you are doing everything in your power to have it fixed ASAP then I don't see why compensation would be required.

I don't agree with this.
What if the landlord were doing everything they could do to get it fixed, but in the end it took 2 weeks to fix.
Why would a full paying tenant have to accept this?
The landlord is running a business and hoping to make a profit from the tenant (customer).
The customer in this case should definitely be compensated, and the amount should depend on the circumstances, ie, rate of rent, number of occupants, requirement of occupants (maybe a time poor professional requiring extremely high personal presentation), etc.

Wonder what these tenants would do if this was their own house and the HWS went, who would they seek compensation from? Rheem... goodluck to that!

Obviously they would have to organise to get it fixed themselves and be responsible for their own problems, but at least they are not paying rent to an accomodation provider at the time.
In this case, the landlord must accept responsibility.

 

[Ausprop]

IThe landlord is running a business and hoping to make a profit from the tenant (customer).

kapow! here is the problem with all of this, few landlords are actually making a profit, however tenants perceive they are.

everytime I pay rent I feel like i have just bought a fantastic new pair of jeans at a 75% discount

 

[kathryn d]

I don't agree with this.
What if the landlord were doing everything they could do to get it fixed, but in the end it took 2 weeks to fix.
Why would a full paying tenant have to accept this?
The landlord is running a business and hoping to make a profit from the tenant (customer).
The customer in this case should definitely be compensated, and the amount should depend on the circumstances, ie, rate of rent, number of occupants, requirement of occupants (maybe a time poor professional requiring extremely high personal presentation), etc.



Obviously they would have to organise to get it fixed themselves and be responsible for their own problems, but at least they are not paying rent to an accomodation provider at the time.
In this case, the landlord must accept responsibility.

The LL is accepting responsibilty, and following the RTA.
All repairs are being done as quickly as possible.
That is all that is required from the LL

 

[Ace in the Hole]

kapow! here is the problem with all of this, few landlords are actually making a profit, however tenants perceive they are.

everytime I pay rent I feel like i have just bought a fantastic new pair of jeans at a 75% discount

Yes, and many businesses fail too.

 

[Ace in the Hole]

The LL is accepting responsibilty, and following the RTA.
All repairs are being done as quickly as possible.
That is all that is required from the LL

Yes, I realise this, and it's good.
My reply was referring to another post saying that the tenant should not need to be compensated.

 

[Goofy]

Not having Hot Water is consituted as an urgent repair. In victoria that means you have 24 hours to fix the problem.

It sounds like your tenants have been pretty reasonable to date. While there is no set formula to calculate the rental adjustment - if the matter went to the tribunal you can be sure that they will side in favour of the tenant and will award them a hell of a lot more than $50 compensation.

The argument of "what would they do if they owned the property" is null and void. The laws of a tenancy dictate that the landlord has the obligation to provide a property that is maintained in working order in exchange for monies otherwise known as rent.

the Act does not say oh Mr & Mrs Landlord it is ok your tenants didnt have hot water for a week, its the tradies fault we will let you off the hook. It says that you must fix the HWS within 24 hours.

I understand you are doing everything you can to get the matter fixed, but in the end the tenants havent had hot water for a week... put yourselves in their shoes and ask yourself if you would be happy dunking your head in a bucket and call that washing!

You will most likely find that if you make an offer of compensation as a measure of good faith, the tenants with be greatful and the matter wont be taken further. It wont set the ball rolling for the tenants to claim compensation everytime something goes wrong, it will make them respect you and your property even more.

i would recommend to my owners half a weeks rent as compensation in this instance. they still have full access to all the other features of the house, but HW is a pretty damn biggie not to have.