Renting out a home is risky. There’s really no way around it; you have someone living in a property that you own. There are bound to be liabilities.
When investing in real estate, you’ll have to consider those potential legal liabilities that come with owning residential rental properties. There are the catastrophes you have likely thought about; a tenant slipping down the stairs. A kitchen fire. An overflowing bathtub. A tree crashing through the roof.
There are also some surprises – potential risks and liabilities that you have not even considered, because who would?
You need to protect yourself as much as you can, against the known dangers and the unknown risks.
This begins with good insurance.
Premises liability refers to a property owner's responsibility to maintain a safe and hazard-free environment for tenants and visitors. As a landlord in Palm Desert, it is crucial to understand the laws and regulations surrounding premises liability to avoid potential lawsuits and financial damages.
Liability insurance is part of the policy you bought to protect your property. Make sure you have purchased enough coverage and be sure that you know what it covers and what it excludes. Otherwise, you’ll find yourself stuck defending yourself against a claim that your tenant or a guest has brought against you.
Here are the basics of premises liability and how you can best protect yourself and your rental property.
Defining Premises Liability
Premises liability refers to your responsibility for injuries that occur on the property you own. Usually, these injuries are a result of dangerous conditions at your property. You have a legal responsibility to keep your rental home free from hazards and potential risks of injury, so when someone slips and falls or a ceiling beam falls on a person or there’s a fire due to faulty wiring…you’re legally responsible for responding to those claims.
Understanding Duty of Care as a Palm Desert Property Owner
Duty of care is basically what we’ve been talking about as we define and explain the concept of premises liability. This is a term that says as a property owner, it is your responsibility to ensure that your rental property is safe for tenants and their visitors. It also needs to be safe for your vendors and contractors who may be working there, or the landscapers hired to mow your lawn.
To embrace your duty of care, you’ll want to conduct routine maintenance inspections and conduct repairs that will efficiently and effectively address potential hazards such as faulty wiring, uneven surfaces, and broken handrails.
It’s always better to be over-cautious. We recommend that property owners also address any potential security concerns. Make sure all of the doors and windows in your rental property can open, close, and lock properly. Ensure that all of your locks and security systems are functioning correctly.
Failure to uphold this duty of care could result in injuries or damages, which could lead to lawsuits.
Notice of Hazards in Palm Desert Rental Property
Documentation is critical. So is communication. This is always true, and it’s especially true when we’re talking about how you can protect yourself against extra liability.
This brings us to another essential aspect of premises liability, which is the notification of potential hazards on your rental property.
This could mean any number of things, depending on the hazard. A good example is disclosing any lead-based paint. That’s an addendum that is written into every California lease agreement. You have to be forthcoming with tenants about lead paint.
Notification of potential hazards can also mean posting warning signs if there’s a hole in the yard or a “Watch your Step” warning. It could mean informing tenants and visitors of potential risks, such as slippery floors or loose tiles.
We follow a lot of court cases around rental property and premises liability, and we have noticed that in the case of a slip and fall accident, if the property owner was aware of the hazard and did not take appropriate measures to address it, they will almost always be held liable for any resulting injuries or damages.
Prioritizing Tenant Safety
As a landlord in Palm Desert, you also have a responsibility to ensure that your tenants are safe in the rental property that you have provided them. This means ensuring that smoke detectors, carbon monoxide detectors, and other safety equipment are functioning correctly. If a tenant is injured or harmed due to a lack of safety equipment or maintenance, the landlord will usually be held liable. Smoke detectors are legally required in your rental property, and you have to stay on top of inspections and tests that ensure they work.
Look for potential safety issues any time you happen to be inside the home. Whether you’re conducting a move-in or a move-out inspection or you’re just doing a maintenance walk-through mid-lease, all of the safety features and functions of your property should be checked. Stress to tenants that you want to know immediately if something is broken or needs to be replaced.
Premises Liability Insurance
Despite taking all the necessary precautions to maintain a safe rental property, accidents can still occur. That's why it's crucial to have premises liability insurance to protect yourself in the event of a lawsuit or damages. Premises liability insurance can cover medical bills, legal fees, and other expenses that come with a lawsuit.
Insurance is an important first-defense against heavy financial losses. Make sure you include this coverage in your insurance plan.
Owning a rental property in Palm Desert comes with the responsibility of ensuring the safety of tenants and visitors. Understanding the basics of premises liability and taking appropriate measures to address potential hazards can help you avoid legal liabilities and protect yourself from potential lawsuits. Remember to maintain a duty of care, notify potential hazards, and prioritize tenant safety. Additionally, it is essential to invest in premises liability insurance to provide peace of mind in case of unexpected accidents or damages.
These are our best recommendations, and we’d be happy to conduct a risk assessment at your own Palm Desert rental properties. Contact us at Xepco Properties.
