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My Rental Property Flooded

Floods are not particularly choosy about the types of property they damage. A flood could just as easily destroy the property you are renting, or your rental property if you are a landlord, as it can a home that someone owns. Flooding can be caused due to many different reasons including an overabundance of rain that finds its way into the house, faulty pipes, and damage caused by storms, wind, and water. The resulting damage has the potential to be devastating whether you are a renter or an owner.

What Are the Landlord and Tenants Rights and Obligations?

For those who live in areas where there tends to be flooding, even before there is a flood in the apartment or house, you can speak with your tenants about the basics of flood safety and the typical evacuation routes they can take.

It is the obligation of the landlord to provide rental premises that are livable, and in Texas, this doctrine is called the implied warranty of habitability. You need to take care or the repairs that need to be done to the property to make it a place where people can live safely.

In Texas, the property code says that if a rental property is “totally unusable due to an external disaster, then the landlord or the tenant may terminate the lease through written notice.” If the property is partially useable, though, the tenant may get only a deduction in their rent. This can be determined by the county or the district court.

What Are the Tenant Rights and Obligations?

Tenants have the right to demand that a landlord repair conditions in the property that affect your safety and health. If there is damage to the property that the landlord has not repaired, the tenants can make the repairs and then deduct the cost of those repairs from the rent.

Justices of the peace in Texas can order landlords to repair conditions that affect the health and safety of the tenants, as long as the repair does not cost more than $10,000. If a flood has caused damage to the property, and the landlord has done nothing to help, keep these options in mind, and consider getting in touch with an attorney to see what legal rights you have available to you in your jurisdiction.

Additionally, if you have a landlord who is in another part of the state, or even out of the state, you need to make sure they are aware of the flooding as quickly as possible. Let them know the state of the flood, and take photos to send to them. Ideally, the landlord will be quick to respond and will ensure the repairs are completed as quickly as possible.

SBA Loans

The Small Business Administration can offer disaster loans to those who are in need of help after a flood, and they help far more than just small businesses. If you are a renter or if you own a piece of property, you might be able to receive one of these loans through the SBA.

The Home Disaster Loans are for renters and homeowners to repair and replace damaged property, including personal property. Those who are renting are eligible for personal property losses only, of course. However, this does include automobiles.

In order to qualify for the loan, the applicants will need to have a credit history that the SBA will accept, and they need to have the capability to repay the loans. The maximum interest rate on the loans will vary. For those applicants who are found to be unable to get credit through other sources, the maximum interest rate on the loan will be 4%. Those who have the ability to obtain credit elsewhere will have a maximum interest rate of 8%. The rates will be fixed for the term of the loan, to a maximum of 30 years.

For those who are attempting to get an SBA loan to help them with the repair and replacement of real estate, the regulations state that the maximum amount of the loan will be for $200,000. To repair or replace personal property, the maximum loan amount is $40,000. In these instances, the renters would only be able to apply for the loan for personal property to the $40,000 max.

Keep in mind that only disaster losses that are uncompensated are eligible for these types of loans. Certain pieces of properties, such as “secondary homes, personal pleasure boats, aircraft, and recreational vehicles” are not eligible unless they are for your business. In addition, “antiques and collectibles are eligible only to the extent of their functional value.”

These loans can be very beneficial for those who are in need and who do not have anywhere else to turn. However, the damage that a flood can cause, both emotional and physical, can be difficult to repair for many.

Prepare Early to Deal With Future Problems

After you have recovered from the flood, it is important to take steps to ensure your financial safety in the future. Even if you have never been in a flood, you may want to heed the following advice.

Make sure that you buy insurance that will cover flood damage. In certain areas, you may be required to have this insurance if you are in a location that is prone to flooding. However, even if you are not in one of those areas, it is in your best interest to make sure you have flood insurance on top of the other insurance for your home. Keep in mind that most traditional insurance policies will not cover flood damage. You need to buy additional coverage, and anyone who has been through a flood will tell you it is worth it.

Even if you are renting, you should make sure you have insurance. In Texas, it is possible to use the National Flood Insurance Program for renter’s insurance that will cover damage caused by a flood.

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