Loss of Use Damages
Loss of use damages, otherwise known as rent differential damages, become relevant when tenants can no longer reside in their rented properties due to particular interruptions that inhabitants hold no responsibility for. These damages may be the result of a natural disaster (e.g. fires, earthquakes, hurricanes, etc.) or the misconduct of another actor such as the landlord. Thus, in “loss of use” cases, renters are compensated for being evicted and unwillingly losing access to normal use of their properties.
Identifying Loss of Use Damages
Identifying loss of use damages may be confusing because there are also other types of losses involving property. An example of these is diminution in value and cost of repair. Preventive costs are another type of loss that must not be interchanged with loss of use. Thus, loss of use damages “includes only those costs that which are remedial, not preventive.”
To provide an example of loss of use damage, consider a tenant who has signed a three-year lease agreement with a landlord. One day, the broken pipes in an apartment lead to a flood and the property becomes uninhabitable because the landlord had previously neglected the urgent need to make repairs. The tenant has been wrongfully evicted due to the landlord’s misconduct, so the tenant will be compensated for no longer being able to reside in their property throughout the remaining time of the lease term.
How Do You Determine the Amount of Compensation?
The amount of compensation tenants are to receive is usually determined by first subtracting monthly rent at the time of unjust eviction from the fair market value of monthly rent, and then multiplying this value by the remaining months of the initial rental lease agreement. However, the amount of compensation may differ based on particular state or local permits and policies.
If you are experiencing loss of use or rent differential damages, contact our attorneys at Tenants Law Firm for professional legal assistance by filling out this simple online form.