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Rent Abatement, Landlord Rights - Michigan

Seven days after my tenant moved in (August) we had four feet of water flood our rental properties basement (which was finished) because of torrential rains. Needless to say it was a complete disaster and destroyed everything including the furnace and hot water heater.   I was at the property the night it flooded to assess the damages and then returned the next day to start demolition and get remediation teams into the basement to dry and sanitize.   The basement was dried and sanitized in one week and the furnace and hot water heater were replaced in two (this event affected 60% of the city so it was hard to get someone out right away).   Then we agreed on a timeline for the remaining repairs and getting the basement back in order. We completed this on time and the basement is looking like it did before the incident.   Throughout the process, the tenant requested rent abatement because he could not use the basement. However, the basement was usable (water, Electricity, washer/dryer, cable), just not cosmetically pleasing. We declined his request as we felt, considering the circumstances, we were doing everything we could to get it done.   Now, one month after the repairs have been finished, he is requesting rent abatement for the tim he couldn't use the basement. Which I politely denied again since the basement was back in usable condition 10 days after the event and cosmetic order within two months of the event.   Of course he is a lawyer, and I feel he is bullying me. But we are a Family renting our first house while the market comes back and we can sell, and considering the repairs cost me over $10K out of my pocket, I really don't have the several hundred of the rent he wants off.    I am a Landlord by situation and I have tried to reason with him to no avail. What should I do? Any advice is welcome.

Thank you for your reply. I definitely feel bullied and I did send him a certified letter denying his request for rent abatement. He is hanging on the "untenantability" clause in our contract. But in this situation, I think general human compassion would play a factor. Here is the paragraph. I feel it is vague and left for interpretation:  UNTENANTABILITY If the premises become wholly untenantable because of fire or other casualty, LANDLORD may cancel this lease by notifying TENANT(S) in writing, and TENANT(S) shall surrender the premises to LANDLORD. If for the same reasons the premises become partially untenantable or wholly untenantable without LANDLORD canceling the lease, LANDLORD shall repair the premises with reasonable speed. From the date of the casualty, until repairs are substantially completed, rent shall abate in the same percentage that the premises are untenantable, unless the untenantability is caused by negligence or intentional misconduct of TENANT(S), their guests or invitees, in which case rent shall not abate. LANDLORD is not liable for failure to repair until TENANT(S) have notified LANDLORD of the need for repair and a reasonable time to make the repair has passed thereafter. If 50% or more of the premises are untenantable, the premises are "wholly untenantable".
Jon, I am sorry to hear this and I hate when a good landlord /owner properly takes care of the house and is taken advantage of.  In lots of cases when something like this happens the tenant is lucky if they are not removed from the house where legally a contract can be broken because of natural disaster.  If your tenant will not come to terms you may have to bring a lawyer into it to help shed some light on your costs vs. his living condition.  Do not give into bullying as it seems in your story you did do everything right and the tenant was in the know the whole time.  Good luck and I wish I could help shed more light but a lawyer may be the best call before the tenant tries to take action.
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