Landlords and tenants sometimes face the unfortunate circumstance of fire damage or casualty at the rental property. Landlords and tenants should reference the Arizona Residential Landlord and Tenant Act to understand their legal obligations and remedies as situations arise during tenancy. In the Arizona Residential Landlord and Tenant Act, you will find 51 state statutes that govern the Landlord and Tenant relationship, Landlord and Tenant obligations and remedies. If a fire or casualty happens at the unit, the landlord and tenant should work together, likely with their insurance adjustor, to determine the extent of the damage. If the damage is found to substantially impair the tenant’s enjoyment of the dwelling unit, the tenant may take one of the following actions:
- Immediately vacate the premises and notify the landlord in writing within 14 days thereafter of his intention to terminate the rental agreement, in which case the rental agreement terminates as of the date of vacating.
- If continued occupancy is lawful, vacate any part of the dwelling unit rendered unusable by the fire or casualty, in which case the tenant’s liability for rent is reduced in proportion to the diminution in the fair rental value of the dwelling unit.
Please keep in mind if the rental agreement is terminated, the landlord shall return all security recoverable under A.R.S 33-1321. Accounting for rent in the event of termination or apportionment is to occur as of the date the tenant vacates all or part of the dwelling unit.
All tenants have a responsibility to ensure they have an insurance policy in place to protect their personal interest in the case of a fire or casualty. I highly recommend that tenants seek professional advice from an insurance agent prior to leasing. Most landlords’ insurance policies do not cover the tenant’s interest, including the replacement of the tenant’s personal property, so tenants could suffer substantial losses if they don’t take responsibility to protect their own property.
Landlords typically engage property management companies for many reasons, like having someone to professionally handle unit damage and subsequent repairs, but also for the cost effectiveness of having a team of professionals in their corner to help ensure conformance to state laws and avoid expensive legal repercussions. This is just one of the many benefits of hiring an experienced and qualified property management company. FBN
By Mike Hutchins
