Water leaks are the worst! I remember one day walking downstairs in the morning, getting ready to go to the gym. My shoes and socks are by the front door and when I got to the bottom floor, I felt water coming up from in between the vinyl flooring! I usually take pre-workout to wake up, but this water instantly woke me up. I turned the lights on and kept walking. As I walked through the first floor, you could see the water coming out in between the planks as you stepped… SLAB LEAD! I can honestly share that it's one thing to know that these things happen, it's another thing completely to have to go through it first-hand. Due to the extent of the damage, Elyse and I had to relocate to an Airbnb with our two little ones for approximately a month and a half. I can honestly share that this was a very emotional and mentally draining as it's not easy to be displaced. Whether freshwater or sewer water, we will work to help expedite the process of getting you back to normal as quickly as possible. The following steps will take us from addressing the leak all the way to getting everything back to normal.
STEP ONE: Stop the Leak
The first step is to identify and stop the leak. Ideally, if you are able to see where the water is coming from and report it quickly, we can address it without the property being damaged. However, based on the source of the leak, sometimes these are not noticeable until the signs of the damage showcase the fact that there's a leak. This can be due to freshwater pinhole leaks or sewer water that's been seeping from a drain, such that it is only noticeable after the water comes from sections such as walls or ceilings. The plumber will identify the source of the leak and address it. If the property was built after 1987, then a plumber can open up any walls required and get to work right away, and we move onto Step Four. However, if the property was built prior to 1987, testing may be required and we move on to Step Two.
STEP TWO: Testing Required?
If the property was built prior to 1987 (to follow proper procedure) the walls need to be tested for asbestos or lead prior to opening them up. An environmental company will come in to take samples and send those to the lab. If the tests come back negative, then the plumber can proceed with opening up the walls without issue, address the leak and we move on to Step Four. However, if the test comes back positive for either asbestos or lead, then we move on to Step Three.
STEP THREE: Abatement
If a property contains lead or asbestos, a specialized vendor dealing in the Abatement Process will be the one safely removing the lead or asbestos. It is important to note that prior to 1987, both lead or asbestos products were utilized. These two products do not pose a health concern if they are not disturbed. However, when the drywall is being opened, proper procedure must be followed to make sure that any lead or asbestos is contained, removed from the premises and disposed of properly. The appropriate vendor will set up the job site to make sure that proper procedures are followed for the safety of all residents. Once this has been completed, we move on to Step Four.
STEP FOUR: Dry Out
Making sure that the property is 100% dry is key to prevent the scary four-letter word… MOLD! To accomplish this, the vendor will set up fans and dehumidifiers. The number of these will depend on the area(s) affected and how many will be needed in order to dry it as quickly as possible. During this time, it is important to make sure that residents do not turn these off, as this will delay the drying process. A key concern from residents at this checkpoint is the increased electricity costs associated with running the fans and dehumidifiers for an extended period of time. We will cover getting reimbursed in Step Seven. The vendor in charge of getting this set up will visit the property as often as needed and will remove them once the property is officially dry.
STEP FIVE: Should I Stay… or… Should I Go?
A key question that must be answered either by the residents or the property manager is, “Should you stay during the Dry Out & Reconstruction… or… should you go?” There are certain circumstances where, based on the size of the area affected, the answer to this question rather simple. One extreme would be having a bedroom with water damage where it was used as an office and the resident can still work from another location in the house. Therefore, the residents would choose to stay. On the other extreme, you have a two-story place where the entire first floor has been flooded and cannot be utilized at all. These are easy to decipher. However, in our experience, there are a lot of situations where it's hard to decide 100% which is the best way to go and a lot of it has to do with the resident's personality. There's been instances where I would personally say that it's a reasonable situation to stay but a resident is set on moving out as to not have to deal with the situation. Alternatively, there's been times where I have said there's no way that a resident would want to stay in the property and live through the dry out and reconstruction for a couple of weeks, only to have the resident's personality prefer to stay at the residence rather than going through the inconvenience of having to temporarily move their items to a hotel or Airbnb. It is important to note that, depending on the situation, a vendor may advise that it’s required to have a resident relocate in order to complete the work. Please keep in mind that we will need to follow the vendor's suggestions in order to complete the work as quickly as possible.
FINANCIAL RESPONSIBILITY
A common question from residents is as to how they will be credited through the duration of the work. The following is an overview based on whether a resident stays or moves out.
Option 1: Stay
Notes: Most of the time if a resident stays, it's because the entire property was not affected. For this example, we will use rent being $3,000 a month with 25% of the property being affected and assuming the project took a full 30 days.
Owner Responsibility: Provide a credit on the rent for the duration that the affected area was not usable.
Example: The credit given would be $750 ($3000 Rent x 25% = $750)
Option 2: Move Out & File a Claim
The Problem: Owners are required to provide reasonable housing accommodation in a situation where a resident has to temporarily relocate. While this sounds ideal from a resident's perspective, the problem lies as to what is considered reasonable housing accommodation. From an owner's perspective, this may include having a basic hotel with kitchenette, especially for shorter-term project durations. However, from a resident’s perspective they may need something that’s better suited to accommodate their household. In addition, who’s the ultimate judge on whether a rental is good-enough? As you can see, agreeing on something reasonable can pose a challenge.
The Solution: From industry best practices and after having experienced about a dozen of these situations, our go-to solution is to have residents submit a claim with their renters’ insurance. This provides the residents with more flexibility and puts them in control as far as where exactly they want to go and it does not have the owner or property management company restrict their stay. Here’s a couple of items to keep in mind.
Renter’s Insurance: Please note that your lease stipulates that you must carry renter's insurance, and this assumes that you follow your lease provision.
Loss of Use: A renter's insurance policy has a category called Loss of Use. In short, this coverage will pay out if you ever have loss of use of the property and need to relocate (subject to policy limits).
File a Claim: You will file a claim with your Renter's insurance. They will ask you for the contact information of your property manager. Please provide them our contact information and they will reach out to us. We will be sure to answer any questions they may have and provide them with the information needed.
Deductible: Depending on your policy, you may have a deductible. If so, please provide us with a copy of the policy, and you will be provided a credit for the deductible via your resident portal's ledger.
Rent Credit vs. Insurance Reimbursement: It is important to note that from the insurance carrier's perspective, they are only paying for the difference between your current rent obligation and the market price of your stay to temporarily relocate. As an example, let's assume that your rent is $3,000 a month and that a 30-day rental for an Airbnb is $5,000. In this example, you would pay the $5,000 directly to the Airbnb. The rent of $3,000 would be credited to your ledger for the next month's rent and the $2,000 difference is what the renter's insurance would be looking to reimburse you.
Ledger: For simplicity, any credits provided will be reflected in the next month's ledger. This makes it easier on the accounting side for all parties involved and allows a resident to plan accordingly. You’ll receive a credit on a prorated basis for the number of nights that you are out of the property
STEP SIX: Reconstruction
Checkpoint! The property is completely dry and now everything needs to be put back in place. We will work with the vendor to provide you a schedule for the reconstruction to get everything back to normal as quickly as possible.
STEP SEVEN: Utility Reimbursement
A key concern in Step Four is the increased electricity bill to have the fans and dehumidifiers consistently run. To help residents with this increased cost, we can provide an electricity credit reimbursement through your resident portal. To calculate the amount, please provide us with the last three months’ worth of electric bills showcasing the average amount. We will use the average of the last three months to establish baseline. From there, provide us the bill in question which will showcase a larger amount, and we will credit the difference to you through your resident portal, therefore addressing this item.
CONCLUSION
We cannot prevent the leak occurring in your residence. Our wish is that by having a proactive plan, we can help you and your household get back to normal as quickly as possible!
