Rookie Landlord needs advice - Posted by John

import · January 19, 2003, 5:42pm

Posted by Jeff M on January 20, 2003 at 11:42:16:

John:
I am no expert either, but this is why I require my tenants to buy “renters insurance” with me, the owner, listed as the additional insured. I think, but I am NOT sure, that in a case like you describe, the renters insurance would take care of this, and this would NOT effect your rates, since your policy is not covering the damages. Check with an insurance advisor, but that is how I think it would work. SInce the renters insurance is only about $100/year, I have considered giving the tenant the money to buy the policy, just so I don’t have to have the extra risk. I will only do this for good tenants, however. Good luck.

Jeff

import · January 19, 2003, 5:42pm

Rookie Landlord needs advice - Posted by John

Posted by John on January 19, 2003 at 18:42:28:

Hi,

I am a rookie landlord on a shoestring budget in MI. One of my tenants called me today and told there was a fire in one of the bedrooms. Her son was playing around and set his sisters bed on fire. There was not much damage but there is smoke and fire damaged paint and a burn spot on the carpet.

Question is can I make tenant liable and ask him to clean and paint the walls and replace the carpet. It was an accident but it was due to tenant negligence.

If not and if I claim it on my insurence does that mean the insurence cost will go up in future. What else I need to be aware of in such situation.

Thanks in advance.

import · January 21, 2003, 5:47am

Re: Rookie Landlord needs advice - Posted by Frank Chin

Posted by Frank Chin on January 21, 2003 at 06:47:41:

Hi John:

Require your tenants to get “tenant insurance” when they lease your unit next time around.

Filing a claim against YOUR insurance is fine, but your insurer will drop you after 3 claims and the rates will go up because of your negligent tenant(s). With tenant insurance, the tenant will be filing against HIS insurance.

So if his child keeps playing with matches, and he files three claims and HE can’t get insured, fine, you evict him on the grounds he can’t get insurance. If YOU file against your insurance, and you get dropped, YOUR STUCK.

I know monitoring whether the tenant has insurance is hard. In prior posts on this, I mention of tenants damaging my property, and they demand that I fix it. And when I tell them to file the claim against their insurance, one guy said “but I didn’t get it” And my reply was “good, so I’ll have to evict you since you’re in violation of the lease!”.

In several cases where this happened, one tenant backed down, and the lease of the other was not renewed on the grounds that he violated his lease.

As an aside, I noticed one tenant of mine painting the kitchen soon after he rented the place. I thought he was redecorating. He told me when he left five years later that his daughter started a fire making popcorn. He decided to paint and clean it before I found out and might evict him.

If I were you, get some estimates on how much it’ll cost to clean and paint the place. Sometimes a tenant may volunteer to clean and paint it himself if you make it clear that its coming out of his security deposit.

I agree with the other that you should be careful NOT using teants if it comes to electrical or plumbing work because of the liabilities involved. As for painting, you can get sued if a clumsy tenant falls off the ladder, OR if you hire a professional, and the tenant claims the painter ruined his stuff, and stole valuable jewelry. So take you pick.

Frank Chin

import · January 20, 2003, 10:42am

But NEVER let tenant do electrical! - Posted by John Merchant

Posted by John Merchant on January 20, 2003 at 11:42:39:

The one area that it’s most likely (in every state) to be illegal to leave to the tenant is electrical repairs, unless he/she is a licensed electrician.

In my State of WA, for example, electrical work is covered by this state’s Labor & Industries Board, and ANY unlicensed E. work is NOT going to be covered by your insurance the next fire.

Further, if I “hire” somebody to do E. work on a rental that person, if not licensed appropriately, becomes my EMPLOYEE so if hurt or killed, becomes my liability for Workers’ Comp!

So, even though I’m a very capable E.guy, on my own house, I wouldn’t dare do it on any other property, such as rental, nor would I dare to permit a tenant to do so…and whenever I sell my own house, where I’ve done anything E or structural, etc., I ONLY sell “as is” and buyer must have his/her own inspection made. I warrant nothing!

import · January 20, 2003, 6:55am

Re: Rookie Landlord needs advice - Posted by River City

Posted by River City on January 20, 2003 at 07:55:53:

John, I am not an attorney, so I cannot answer the legal aspect of your questions. But, I can present a couple more questions to you so that you can rethink the situation.

Suppose you did ask the tenant to do the repairs themselves so you would not have to file a claim on your insurance, and he/she agreed to do so. Now, also suppose that a few weeks after that there was an electrical fire in the residence and the tenant lost all of their furnishings and personal property due to faulty wiring (that you knew nothing about), and the tenant asks you to reimburse him/her several thousand dollars for the items he/she lost…just so they did not have to file it on their insurance.

Your request is not a fair request. The above example also is not fair. This is why you have insurance. File it on the insurance.

import · January 21, 2003, 9:02am

Ditto and amenNT - Posted by John Merchant

Posted by John Merchant on January 21, 2003 at 10:02:03:

x

import · January 20, 2003, 7:02am

Re: Rookie Landlord needs advice - Posted by John

Posted by John on January 20, 2003 at 08:02:31:

Thanks. I am learning as I go and I am greatful to have interaction with all you on this forum.