Hi,
We let out our basement/ground floor flat in June on Open Rent but the tenant recently discovered a leak from a water inlet pipe/water meter attachment, which is external to the property.
The water has penetrated the walls and primarily the damage is to the basement level master bedroom. The tenants also report mould spots on the internal walls of the second bedroom. Due to health issues, they cannot sleep or work in the rooms in the basement and have sought out very temporary accommodation.
For context, we are the leaseholder and gained permission from the freeholder to sublet the property out. We have contacted the buildings insurance broker provided by the freeholder and we are in limbo while they process the claim with the underwriter and we have to wait for a loss adjuster/damage assessor to contact us.
In the meantime, the tenants are struggling to find similar accommodation in east London, which is also very expensive. We are unable to give timelines to them (as to how long to book a place for) as the insurance broker cannot/is unwilling to give advice, and they are beginning to question the issue of money as they have paid rent for something they are now not using. They are also concerned that their out of pocket costs for temp accommodation is considerably high and they want to understand if those monies can be claimed back through the mentioned building insurance. We are 4 months into a 24 month contract, with a break clause after 12 months. Neither party has begun to discuss breaking/ending the contract…
I know nobody can give legal advice here but has anyone here been through anything slightly similar to this situation or any experience / guidance they can offer? Any experience in speeding up the insurance process at all as nothing is happening and we are very stressed for our tenants and trying to get multiple quotes from builders for the insurance company.
There is no contact at Open Rent either who I can find who is willing to help, they just keep redirecting to the Community pages and FAQs! Would be nice to have contract help from open Rent.
Also, if anyone can recommend a solicitor with knowledge of this area who might be able to offer advice, I’d be grateful.
If you have landlord insurance this would usually cover your tenants costs for alternative accommodation if the rented property becomes uninhabitable. You should look into this in the first instance. If the source of the leak is actually from a pipe joint that is outside the property boundaries it will most likely be the water board that is at fault and any insurance claim would be made against them.
Your tenant should not be paying rent & the costs of alternative accommodation. Either they pay rent & you pay for somewhere for them to live, or they stop paying rent & cover their own costs. If you used OR for your agreement, I’m sure this eventuality is in the agreement. I assume you would have read the AST.
Who decided the property was not suitable for occupation? How wet / damp is the basement? Do you have Landlord Insurance?
If the water leak is from a pipe outside & that is the freeholder insurers responsibility, they should be liable for your costs & those of your tenant, but it will be their decision if the property is uninhabitable or not.
Water leak outside of buil
The duty to house tenants suddenly made homeless due to a catastrophic event is with the local authority. A landlord would only have this liability if their insurance covers it.
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