What is our obligations and or responsibilities regarding water damage in a condo that we rent out?

UPDATED: Mar 5, 2012

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What is our obligations and or responsibilities regarding water damage in a condo that we rent out?

I am the owner of a condo. My tenants recently had water coming from the ceiling from the condo owner above. After contacting all our insurance companies work will begin tomorrow which consist of tearing down the portion of drywall affected setting up a blower for approximately 72 hours and use of their electricity. Our tenants feel that they should be compensated for the inconvenience and for damages to their property. We have discussed with them that after we get a settlement with the upstairs owners insurance company which will include their damages and hardships that we hope to compensate them. Our tenants do not want to wait for compensation and asked us to compensate them now which includes their damaged property 3 nights at a hotel and money for their hardship. Part of the lease agreement that was signed with them required them to show proof of renters insurance. They said that they have a $500 deductible and choose not to go through that. What are our responsibilities and or obligations?

Asked on March 5, 2012 under Real Estate Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Good question. I would compensate the tenant you have immediately for the 3 nights they stayed at and their meals for this time period. You might also consider rebating them a bit of rent for as a goodwill gesture.

It is the tenant's fault to not have had renter's insurance in place as required by the lease agreement with you. Under the law, your tenants are not entitled to any compensation for "hardship". Make sure the tenants sign a document for all monies that you pay them concerning the damages condominium.

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