Tenant Compensation and the Law
The question of tenant compensation is almost exclusively governed by landlord/tenant laws. As a property owner, you are accountable for guaranteeing that your rental house is in a habitable condition. This generally signifies that your rental home is clean and livable. It also suggests that your roof keeps the house dry and that the appliances and other elements work correctly. When the property isn’t habitable, for one factor or another, that can result in circumstances where a tenant may be compensated.
Reasons to Compensate a Tenant
Some of the most typical reasons that a property owner may need to compensate a tenant include the following:
Repairs. One of the most typical explanations why a property owner would need to compensate a tenant is due to repairs. In some instances, a property owner might be unable to make critical repairs on time. Whether you are out of town or otherwise unavailable, if anything breaks and causes your tenants to lose the quiet enjoyment of the rental house, you must repair it. If you cannot do so, your tenant may have the repairs made within the confines of state law. It’s preferable if the tenant obtains your permission beforehand, but even if they don’t, you’re almost certainly required to reimburse your tenant for the cost of repairs if they follow the state requirements.
Broken appliances. Sometimes compensation comes up in disagreements regarding the condition and functionality of appliances. Refusal to take responsibility for broken appliances is one of the most prevalent causes a property owner gets sued by their tenants. This is partly because the situation is more complex than it first appears. Landlords sometimes argue that a broken dishwasher, while inconvenient, does not make the entire property uninhabitable. In addition, a damaged oven or refrigerator is viewed as a significant problem, and tenants may argue that the home is uninhabitable. Assume you have provided appliances with the rental house. If one malfunctions and you cannot repair or replace it right away, your tenant may be warranted in repairing the machine and deducting the amount from the rent, as prescribed in your state’s landlord/tenant law. This is particularly the case if your lease documents assign responsibility for the appliances to you as the property owner.
Cash for keys. Occasionally, a property owner may require a tenant to vacate a property before the lease ends. In some situations, a landlord may agree to pay the tenant to move out. Property owners occasionally employ this method to avoid a drawn-out eviction process and encourage a problematic tenant to move on sooner than later. Considering how long it takes to evict a tenant and that you probably won’t be collecting rent during eviction proceedings, offering to pay them to move may save you money in the long run.
Even though the most typical, these are not the only reasons you may require to compensate a tenant. Nevertheless, if you find yourself in a scenario where payment is expected, it is critical to document everything cautiously and issue the funds right away. If you are pro-rating a rent payment, don’t forget to record it and notify your tenant in writing. If you must send payment to your tenant directly, utilize a strategy that gives a paper trail, such as a business check.
While landlord/tenant laws vary from place to place, staying on top of tenant compensation is important in keeping excellent tenant relations. As a Jamaica property owner, you’ll need a comprehensive understanding of the landlord/tenant laws that regulate compensation to guarantee that you are in full compliance. Real Property Management New York Gold can help you prepare a lease to cover these issues or even manage your property entirely. Contact us today to get more information.
Originally published on October 9, 2020