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Business admin Wed, 02/27/2019 - 01:44

How to handle common tenant complaints

SIL6504 — Fri, 22 Jun 2018 15:22:47 +0000

How to handle common tenant complaints SIL6504 Fri, 06/22/2018 - 11:22

As a property owner, it never fails that problems will arise — and how you handle these issues can affect your tenant retention rates and your reputation as a landlord. Here are solutions on how you can approach the top five most common tenant complaints.

State Auto Insurance makes no representations or guarantee as to the correctness or sufficiency of any information contained herein, nor guarantees results based upon use of this information. State Auto does not warrant that reliance upon this document will prevent accident and losses or satisfy federal, state and local codes, ordinances and regulations. The reader assumes entire risk as to use of this information.

How to avoid party fouls when renting out your clubhouse.

SIL6504 — Fri, 22 Jun 2018 15:14:33 +0000

How to avoid party fouls when renting out your clubhouse. SIL6504 Fri, 06/22/2018 - 11:14

Birthday bashes, going away shindigs, surprise parties, dinner, cocktail and pool parties, new jobs, or college graduations, there are a million reasons to have a celebration! Apartment complex clubhouses can be a great place to throw a rock star style blow out or classy upscale function. As building owners, amenities such as clubhouses can add to your property value as well as can be an excellent selling feature for apartment complexes or condos. And if your residents are looking to host a special event, many may want to opt for renting out your clubhouse.

If renting out your common space is something you decide to do, carefully preparing, insuring and managing the risks associated with this is essential for the party to go off without a hitch - especially if alcohol will be served.

There are few things you'll first want to decide on before you make your space available for rent. Are non-tenants allowed to rent the space? Will you be required to host the event or can the tenant host? Is there a curfew for how long party goers can stay?

Once you set your rental guidelines, the next thing you'll want to consider is what the protocol is to serve alcohol. If alcohol is featured at the party, you'll want to make sure you proactively manage your liability exposure. Did you know that any establishment that sells or serves alcoholic beverages might be held liable for damages or injuries caused by intoxicated guests, even if no money is exchanged? That's right. Your establishment could be held liable for any damages that result from fights, reckless behavior or even car accidents. Lucky for you, you could help protect your business with a liquor liability insurance policy. The fun doesn't have to stop if you follow these tips to help mitigate the risks.

Have tenants sign a contract/amenities rental agreement with liquor policy terms specifically outlined. Ideas to include within the rental agreement:

Have tenants provide proof of renter's insurance
Have tenants provide a security deposit.
If alcohol is being served, have tenants hosting parties hire a bartender or caterer, with a signed contract agreement in place, and require the contract to transfer the legal liability to the serving company
List a maximum number of attendees

Other ideas outside of the rental agreement:

Don't allow property management staff to serve or participate
Have an alcohol policy in place and include rules such as guests must have proper ID and no service to minors is allowed
Post the liquor liability policy in the clubhouse and on your apartment or condominium community website

Liquor-related laws vary by state, so it's important to know how your state views alcohol-related responsibilities. As a property owner, you could potentially be held responsible for the actions of your tenants when they utilize your clubhouse or pool area for social gatherings. What's a property owner to do? Be aware and help protect yourself. There are sites you can go to find out what your state's stance on Dram Shop laws and Social Host Liability. Here's one option: Dram Shop Laws and Social Host Liability Website. Now fair warning, Dram Shop laws are not easy to digest or understand, so speaking with your insurance agent and a lawyer to better understand what is covered, and what is not covered, is a great place to start!

No need to close down the clubhouse, and you don't have to be a party pooper because of liquor liability or social host liability concerns! Get to know your responsibility as a property owner, and how you can help protect yourself...so your tenants can party on Cheers!

Landlords, make sure you have the right risk transfer practices in place

SIL6504 — Fri, 22 Jun 2018 15:01:16 +0000

Landlords, make sure you have the right risk transfer practices in place SIL6504 Fri, 06/22/2018 - 11:01

Ever had a less-than-cooperative tenant? Maybe this renter didn't meet your requirements or maybe they actually caused a lawsuit against you while living on your property.

Whether you're the landlord of one property or multiple apartment complexes, the security of your livelihood may depend on your understanding of risk transfer.

So, what is "risk transfer"?

It's basically moving legal responsibility from one party to another by means of a contract.

As a landlord, you want to try to avoid being held responsible for a tenant's mistake (causing a fire, hurting someone or damaging property). When you rent your property to others, you can face an increased potential that you could end up being held responsible for losses created by the people renting the property - and anyone they invite or allow to visit.

So you transfer your risk, starting with your lease agreement. A landlord can require a tenant to carry renter's insurance as part of the lease agreement. This can transfer some of the financial responsibility of the property to the tenant, should the tenant be held responsible for the damage.

The landlord's own insurance policy can also be a form of risk transfer. Insurance is designed to help minimize the potential risks that could arise from owning and/or renting the property.

Here's where it gets complicated - the typical insurance property and general liability coverages may not provide the full protection a landlord needs for losses caused by renters or others.

Why? Because people who are NOT renting property to others may not need to pay for these coverages in their policy. So the policy may not address this specific need of landlords. The solution could be adding coverage to that policy that does indeed address it. This needs to be a topic of conversation with your insurance agent.

Another potential risk factor you might be faced with based on your tenant's activities … their relationship with you. The relationship between a landlord and tenant is important, and it can get tricky if you're not comfortable with the tenant's activities on your property. If written properly, a lease agreement may be something you can fall back on to help protect your property, and help to maintain a working relationship between all parties involved.

So, what types of provisions should your contract with your tenant include? Three types of risk transfer provisions that could be beneficial for you to include in a landlord-tenant lease agreement include: indemnity, additional insured, and a waiver of subrogation.

1. Indemnity

An indemnity provision could be a primary way for a landlord to shift their risk in a contract. This provision could include wording that requires the other party to agree to such things as the following:

The responsible party agrees to compensate the other (insurance people like to use the word "indemnify"). This essentially makes sure the other party is fully compensated in the event a loss, injury and/or damage incurred.
One party is responsible for defending the other. If a landlord ends up with legal expenses due to a third party claim against them the tenant must pay them and, potentially, arrange for their defense.
A hold harmless provision, the party agrees to release the other party from the responsibility for any damages, loss and/or legal liability that might arise.

This type of clause can be beneficial in protecting the landlord's interests when a situation arises where bodily injury or property damage occurs thanks to the actions (or omissions) of the tenant. If you're a landlord, and you don't include an indemnity provision in your lease agreement, you could be putting yourself at an increased risk of being held responsible for an injury that happens because of something the tenant did.

2. Additional Insured

Additional insured provisions also help landlords by allocating risk - giving the landlord another avenue of protection through the tenant's insurance policy. But, for these provisions to work, one party must list the other as an "additional insured" on their insurance policy. The insurer could then be required to indemnify and defend the additional insured as per the policy terms and conditions.

Some things you might want to consider when including an additional insured provision in a lease agreement:

The provision should include minimum requirements for the tenant's insurance policy. These requirements could include things like; a financial rating of the insurance company, coverage time period, limits of liability and types of coverages.
The landlord may want to require proof that they've been added as an additional insured on the tenant's insurance policies.
Consider requesting copies of all insurance documents.

3. Waiver of Subrogation

The right to reimbursement, or subrogation, means that the tenant can seek compensation from the landlord even if the tenant was responsible for the claim, or vice versa. Subrogation claims can cause arguing between parties as to who is responsible. To prevent this, a tenant may choose to add a provision that has the tenant agree to waive rights of subrogation prior to any loss in favor of the landlord. To personalize the waiver of subrogation, landlords can request one that is all-encompassing or one that is specific to particular dangers. It also can be specific to locations or work and can contain consent of the named insured.

So, how do you make sure your contracts have the right provisions? Always consult with your legal and insurance professionals first. You could greatly limit your risk exposures - and help lower your risk of difficult situations with a tenant. Make sure you take the time to review all documents, and with the right professionals.

If you'd like to dig deeper into this topic, here's a whitepaper on shifting risk through the use of contracts

Prevent guest and tenant swimming pool disasters

SIL6504 — Fri, 22 Jun 2018 14:49:01 +0000

Prevent guest and tenant swimming pool disasters SIL6504 Fri, 06/22/2018 - 10:49

Summer is just around the corner and soon swimming pools around the country will be filled with water in anticipation of another swimming season. Tenants at an apartment complex or vacationers at a hotel probably never stop to consider the potential liability exposures of a swimming pool. However, the owner of that apartment or hotel should be aware of the associated risks, and ways to help try to control them the best they can. Here are some tips to consider, which could help to ensure pool safety:

Routine inspection and maintenance of pool fencing/gates/locks, etc.
Ensure all lighting around indoor/outdoor pools are working so tenants/guests can clearly see where they are going and the area is free of any hazards.
Regular check of alkaline, chlorine and disinfectant levels to make certain they are within an acceptable range at all times (want to make sure you're killing any dangerous bacteria). Keep all pool chemicals in a secure, cool and dry location, out of reach of children and properly dispose of any old chemicals.
On-going inspection and maintenance of the pool electrical components like pumps, heaters, or salt systems - repair or replace when showing signs of wear and tear.
Pool rules and hours should be clearly posted and include an emergency number, like 911. Also, life-saving devices, like life jackets, should be placed near the pool in a location where they can be seen and easily accessed.
Repaint depth markings so swimmers know the shallow and deep ends.

With regular inspection, maintenance and enforcing strict pool rules, you can help prevent accidents, and help ensure that everyone can have fun in the sun!

Summer may end, but swimming pool liability goes on

SIL6504 — Fri, 22 Jun 2018 14:33:20 +0000

Summer may end, but swimming pool liability goes on SIL6504 Fri, 06/22/2018 - 10:33

Depending on where you live, warm-weather activities, like swimming, might be the last thing on your mind right now (unless you're dreaming of a winter escape further south).

At the beginning of summer, swimming pools around the country are filled with water in anticipation of another swimming season. That's when people tend to think about pool safety. Yet, when pools are emptied at the end of summer, they leave a big … gaping … concrete hole in the ground.

If you're responsible for a pool that is closed part of the year, you should know that they can pose as much of a liability hazard as open pools.

Tenants at an apartment complex or vacationers at a hotel likely never consider the potential liability exposures of a swimming pool, whether it's open or closed for the season. However, the owner of that apartment or hotel should be aware of the hazards associated and control them the best they can.

Recently closed up the pool for the season at your business? Here are some questions to consider:

Did you re-check fencing, gates, and locks? They received a lot of use over the summer and just might be in need of some repair love.
Did you follow balancing, shocking and algaecide best practices before closing the pool?
Have you taken steps to prevent water from freezing and causing cracks and other problems? Things like draining and blowing out water from all plumbing and equipment and using plugs for all of the loose ends. Swimming pool anti-freeze is another option for your plumbing related equipment.
How well have you covered your pool? Did you check for rips and tears? Be sure to find out where your water levels need to be for your specific pool cover type. Covering your pool is essential for safety and maintenance reasons.
Do you have a process for keeping the water balanced throughout the winter months? This is especially important if you live in areas where temps don't get below freezing.
Have you considered using an air pillow, especially for above ground pools? Air pillows help compensate for the weight of ice and snow on pool covers in those chillier climates that are prone to more freezing weather.
Did you take down diving boards, slides and ladders and store away poolside furniture?
Have you posted signs that clearly state the pool area is closed for the season?

With regular inspection, maintenance and enforcing strict pool rules, you can prevent off-season pool accidents which helps to make sure everyone stays safe in the winter. Prefer to have your pool closed by an experienced professional? Consider hiring a reputable company to do all of this for you, and use this handy checklist to make sure they are on track. Here's another great pool closing resource.

Did you know OSHA offers FREE On-Site Consultations to small to medium-sized businesses? Check out OSHA On-Site Consultation Services for Small Businesses for more information.
The CDC also offers information on how to properly operate and maintain public pools. Visit CDC Pool Operation and Maintenance webpage for more information.

State Auto Insurance makes no representations or guarantee as to the correctness or sufficiency of any information contained herein, nor guarantees results based upon use of this information. State Auto does not warrant that reliance upon this document will prevent accident and losses or satisfy federal, state and local codes, ordinances and regulations. The reader assumes entire risk as to use of this information.