Damage/Insurance/No Rent....

[Lickster]

I have posted earlier about the storm damage my IP had early in the new year. The problem is that because it is a country town it is taking a while to get the repairs done, though it looks things are starting to happen now. The tenant was asked to put something in writing as due to the water damage and the aircon being out we thought waiving the rent for a week or two would be fair compensation.

Just got a call that the tenant has not paid rent at all and is not returning calls, also known to be looking for another place. I'm with EBM and I know they cover loss of rent in many situations - will I be covered from the date of the storm if the tenant bails out ? Becoming a real headache just because of the time it is taking to get the insurance claim in.

 

[marg4000]

What is your PM doing about chasing up the arrears? The appropriate notices should be issued promptly followed by eviction proceedings.

You can't just let the tenant stay rent free and expect an insurance company to pick up the tab. You must make every effort to collect the rent and then evict the tenant if payments are not brought up to date.

If you choose to waive the rent then the insurance won't pay.

If justified, negotiate a lower rent until repairs are effected.
Marg

 

[Lickster]

The PM is onto the case which is why they rang me yesterday. Yes we have offered a period of grace for the inconvenience as a goodwill gesture. If the tenant says "stuff you" I'm moving out, and defaults - well that is the scenario I'm looking at.

Never know, perhaps she will pay up in the coming days.