Sometimes the tenant may feel it is better to stay in the property even if it is partially destroyed. This should be negotiated with the property manager/owner. Health and safety issues should be considered when making this decision.
Until a notice is given, the tenant is responsible for paying the rent in full (even if they have been evacuated from the property).
The rent may be reduced if the property is damaged or if some of the facilities (e.g. car park, pool, laundry) are unavailable. This is determined on a case-by-case basis.
Rent reductions may occur when:
- services, facilities or goods to be provided under the agreement are no longer available (not because of a breach), or
- the amenity or standard of the property decreases substantially
The decrease can be negotiated and should be put in writing.
The tenant may want to leave the property and return after the damage has been repaired. Any agreement to waive the rent during that period should be put in writing.
The property manager/owner and tenant can decide to terminate the agreement and sign a new agreement after repairs are completed. The terms of the new agreement would need to be negotiated and would not necessarily be the same as the old agreement, including the rent amount.