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Is the landlord responsible for the cost of a hotel until the repairs are done? Does the rental agreement have to specifically state that?
Yes, if there are not operable bathroom facilities in the property, that would make it legally uninhabitable. Since the landlord has a legal duty to provide a habitable dwelling under your lease contract, they would be responsible for providing alternate accomodations to you at their cost during any period where the property is uninhabitable.
And no, the lease doesn't have to specifically state this as it is a matter of landlord/tenant law and is implied by the lease contract.
As an aside, in addition to being an attorney, I have also been a landlord for over 26 years...
The tenant can pick the place, but it has to be comparable accommodations... So reasonable is a subjective determination, but if you check out some local motel/hotels and the price range is from $70-150 a night, for example, then I would opine that a $100 a night dwelling would be deemed reasonable.
I would suggest that you communicate with the landlord what your options are for lodging and tell them that you will let them determine if they have a preference where you stay. That way it shows that you are acting in good faith in seeking alternate lodging.
I think that is a reasonable solution to the problem as the landlord has the burden of providing a habitable dwelling under the lease. As for deducting from the rent, NY has a repair and deduct law that allows a tenant to cure a serious problem and then deduct it from the rent if the landlord won't cure the problem (i.e. pay for the hotel). N.Y. Real Prop. Law § 235-b (only for emergency repairs ); Jangla Realty Co. v. Gravagna 447 N.Y.S.2d 338 (Civ. Ct., Queens County, 1981.
I would opine that this would meet the "emergency repairs" requirement and if the landlord objected and tried to retaliate by attempting to evict for you applying the cost of the hotel to the rent, then this is illegal and would give you grounds to defeat any eviction action and also countersue him for the illegal retaliation. N.Y. Real. Prop. Law § 223-b.