Earthquake repairs require tenants to vacate property.

[utopian201]

Hi
I couldn't find a thread about earthquake repairs and tenants moving out.
Last week I went through my property in Christchurch with Fletchers and a builder to scope repairs for my property that had light damage from the earthquake.

They told me the repairs will take about 4 weeks and will take place in about 3-4 months time. The tenants will need to move out while the repairs are carried out.

My property manager has said there is no legal avenue to ask the tenant move out and has a fixed term tenancy till April next year.

The tenant has contents insurance however they are not covered for temporary accommodation. My insurance also will not cover loss of rent as the tenants were not living there back when the earthquake happened.

What are my options at this point, and what are your experiences in the same situation? They are very good tenants and I would like to keep them on so am willing to take a financial hit.

I am thinking of either:
1. I give them 3 months notice to terminate the tenancy. The repairs are carried out, they find a new place to live and I need to find new tenants after the repairs.
2. They move out into temporary accommodation while the repairs are carried out. When they move back in I give them lower rent till the end of the tenancy to recompense them for the hassle of moving about etc.

Are there any other alternatives? It seems like a bad situation for all involved and want to come up with ideas before going back to my property manager and tenant.

[Keys]

Alternative number 1 can not be used.
Alternative number 2 is at the discretion of the tenants.

In my experience, tenants do not move back in once they have moved out.

[DazRaz]

I suggest you talk to them about options. I've had one who had to move out so we did no rent during the repair period and her insurance paid for two caravans on the back of the property for them to use during the 4 weeks.

This tenancy was periodic so the option to end the tenancy was always there however they were prepared to rough it a little to keep the tenancy rather than try to find another place.

You may be able to work out something which works to the satisfaction of both of you or you could always delay repairs. If EQR can't gain access until April, they may opt to cash settle and that would give you more flexibility. I have done that for one property. Have the money invested, repairs to be done on change of tenant which could be years away.

[sidinz]

If you try #2, I would suggest giving them X weeks' free rent instead of reduced rent until the end of the tenancy. If your PM forgot to get a new agreement to them in time, their agreement would roll over to periodic and you could be stuck with the reduced rent for years.

[Dugster]

I have had tenants move out in a couple of places and move back in. The best thing to do is talk with them, be honest about it, and ensure you're giving them the option, not trying to manipulate them. They may hold the stance that they're unwilling to move out, as is their right, however in general people in Chch I have found are pretty understanding about EQ issues. Obviously they wouldn't pay rent while not there.
Additionally, argue with the fletchers clowns about time frames for repairs. They tend to cram 2 weeks worth of work into 4 weeks, and I have found that not one of them started on the day planned, so the tenants could have stayed another few days! You have to keep at the Fletchers Contractors to get it done asap. They don't give a toss; it's not their rent that's not coming in.
Or, as above, just tell them they can't do the repairs in 3 months, and cash settle. Then do them at your leisure.
Good luck.