Tenant compensation

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    Tenant compensation

    Hello

    I am a new landlord trying to do the right thing and I need some advice please.

    My property is in a block of flats with onsite estate management. On Friday, a pipe broke which left all flats (circa 500) without water. The onsite team called an engineer on same date but the issue was complex and although they worked throughout the weekend, a fix was not obtain til Monday (3.5 days without water).

    My tenant did not inform me of the issue until Sunday night (2 days later) given there was on ground communication by the estate management. I understand that the block which houses the gym was not impacted so residents could go there to shower and fill up water canisters.

    On Monday, immediately after the fix, my tenant wrote to me asking for compensation. I am not sure if I have to pay him this and if so, how much.

    if this issue had been as a result of something within the property or my control, I would have fixed it immediately but this was a communal issue. Furthermore, whilst it had been 3 days, he hadn't actually informed me of this until Sunday night, nothing I could do but I replied within 5 mins saying I would chase an update and I updated him regularly until next day when the issue was fixed.

    I would be grateful if someone could guide me as to what, if anything, I should be paying.

    Of course, if the freeholder provides compensation then I would pass that 100% to tenant but my understanding is that none will be provided as they attended the site immediately and took every endeavour to repair this as soon as possible.

    Thank you

    #2
    I don't think there's anything you need to do, but you can choose to if you want.

    The tenant didn't suffer any loss as a result of anything you did or didn't do and I don't think they're entitled to compensation.
    You might offer them something as a gesture of goodwill, but you shouldn't feel obliged to.

    25% of the rent for three days?
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      I'd offer them compensation of £0.00 with a 0% reduction in rent for 3 days.

      Comment


        #4
        No compensation is due at all. Even if the tenant suffered a loss it would be doubtful - it involves a utility supply outside of your control. Certainly if the place was uninhabitable you might need to find alternative accommodation.

        The freeholder certainly is not due to pay any compensation to lessees -- that would be paid out of the service charge (unless of course the FH was negligent in some way -- but even then FH is almost immune to any liability for almost anything in the current legal landscape)

        Comment


          #5
          Ask what he wants compensating for ?
          If he had to move to alternative accommidation then it might be a claim on the buildings insurance maybe ??

          Comment


            #6
            He did not have to move, in fact, he only told me about the issue two days after the water had gone thus giving me no chance to offer alternative solutions. The water was restored by lunchtime the next day after he informed me.

            He wants compensation for his trouble and that he had to go to gym to shower and that he had to get take away food because he was not able to cook and wash up.

            I asked the estate agents and they said that even though the loss of water was not my fault, they advice me to provide compensation at a rate of 100% of the daily rent X number of days without water. They say even though it is an external issue, my property was uninhabitable technically speaking.

            I find this odd because as a landlord, how can you be responsible for any issue with gas, electricity, water suppliers or anything else external that causes a failure in utilities?

            Comment


              #7
              Depends if LL had a repairig liability.

              Comment


                #8
                Ignore the agent and tell the tenant to jog on. Things breaking down are a fact of life and it was fixed within 3 days.

                My boiler and hot water tank recently went down and it was a week before it was back up and running. I showered in work, no big deal. I didn't go crying all around the country shouting "I want compo".

                Also, how does the water going down affect somebody cooking? Does he have a water powered cooker?

                Give him compensation now for something stupid and he'll expect compensation for all stupid things.

                Comment


                  #9
                  Gesture of goodwill? How about a section 21 notice in with his Christmas card?

                  Comment


                    #10
                    You don't owe him anything. Unhabitable means you can't stay there at all. Did he stay in it? Was he the only one it impacted? nope.

                    If you want to play it diplomatically, by all means say you will write to water company on his behalf and will pass on any compensation received.



                    Comment


                      #11
                      Originally posted by JK0 View Post
                      Gesture of goodwill? How about a section 21 notice in with his Christmas card?
                      Or better yet... a Christmas card in with his s21 notice.

                      Comment

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