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Liability of Landlords in California and Insurance Protection?

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LAbucks

Junior Member
What is the name of your state? California

Hi, I am a fairly new landlord and I just wanted to ask a couple questions on financial liability that the landlord is responsible for their tenants on. Any help would be very much appreciated! The setting for these questions is a multi-residence condo building where I own and lease out one of the units.

1.) If the tenant destroys the condo unit and bails, obviously the landlord is financially responsible for repairing the unit. Are there any insurance policies that would cover this were it to happen?

2.) If the tenant destroys common property (a hallway for example) that is shared by multiple residences, or destroys someone else's property, I believe the landlord is again liable? Are there insurance policies that would cover this were it to happen?

3.) If the tenant injures another person in the building, is the landlord financially liable for any medical bills of the victim? Again and sorry for sounding like a broken record, but are there any insurance policies that would cover this were it to happen?

4.) Why do some landlords require their tenants to get renters insurance for their personal contents in the unit? Are landlords financially liable to replace these items in the event of fire, theft etc.?

Again thanks for any help!
 
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CA LL

Senior Member
Insurance is NOT for tenant damage/vandalism, etc.

Anyone can sue anyone and if one tenant injured another and the LL already had reason to know this was a risk they could be found negligable in some cases. That is why liability insurance is there. But the first responsible person would obviously be the tenant who did the harming of another person.

Renters insurance for tenants NOT ONLY covers their own belonging BUT liability as well..which is why ALL LL's should REQUIRE tenants purchase it (about $12 per month) or at least STRONGLY encourage it.
 

CA LL

Senior Member
Might be a lot more helpful if you posted the precise situation you are dealing with..these questions seem to point to a specific situation not general but maybe I'm wrong.
 

LAbucks

Junior Member
Thanks for your response CA LL. Is it possible to PM you or email you in regard to the specifcs of this matter?
 

CA LL

Senior Member
I didn't mean specifics like names, etc. And it is most helpful to post HERE so it can help others...
 

LAbucks

Junior Member
Sure, here is the situation I'm in in a nutshell. Basically what happened was that a guest of my tenant got extremely intoxicated, did some damage to the hallway, and pulled the fire alarm which caused the entire building to be evacuated. Now the HOA manager is pressuring me to evict the tenants. I actually think the tenant is a solid guy who just used terrible judgement in this case so even though I am inclined to evict, I want to explore any other options before I make a final decision. I met with my tenant yesterday and he is willing to do just about anything to patch things up with both myself as well as the HOA. However, before I even start thinking about recommending alternative options to the HOA manager, I want to make sure I am protected both legally and financially in case anything like this were to happen again in the future. If you were in my situation, any suggestions on how you might deal with it? Thanks very much.
 

CA LL

Senior Member
I hope you now see that asking some generic question that isn't even half of what the "real" situation is ... will NOT help you.

Having an HOA involved is a huge matter just one of many that your generic question did not mention.

You need to review SEVERAL different documents here...your HOA CC&R's, your written rental agreement with tenant (which had BETTER say the tenant is responsible for behavior and damages caused by their guests), whether or not the tenant does have renter's insurance (should make it mandatory now perhaps), the written correspondence the HOA has sent to you including any specific CC&R clauses they have quoted, any local/state laws they have quoted, etc.

Again..we can't give SPECIFIC legal advice here obviously because WE can't see all of the documents involved, do not have all relative info and as you see above, basing input on only what a poster provides sometimes can be way off from reality.

Personally I would never own a rental in an HOA. YOU the owner are completely liable to the HOA for the actions of your tenants. This includes fines, following the CC&R's, financial liability for any damages, fines, etc. they cause, etc. The list is quite long. I belong to and have sat on my own HOA board.

What type of rental agreement do you have with this tenant? Fixed term lease or MTM rental agreement? What type of screening did you do before renting to this tenant? CRIMINAL? Civil records/evictions? Credit report? Verify income / employment and verify the "reality" of former LL's and then the references from them?

What does your CC&R's say about all of this? Rentals? Do they have the power to force eviction? What clauses are quoted if any in the correspondence you have received thus far. Why are you so determined to keep a tenant that could risk your assets and standing within the community? A solid tenant does NOT do or allow this type of behavior from their guests. I suspect there are even MORE issues that you have not shared re: the HOA/your tenant..maybe not but again...leaving out info in a post can only hurt you hence why I have asked so many questions above.

Me personally..other than not owning a rental in an HOA I would NOT keep any tenant who demonstrated such behavior that upset the community be it an HOA or my own apartment complex.

If you care to share more info answering the many questions posed above...well I think once you do ... if even to yourself you will probably know what you need to do. I can't see any of this info but you can.
 

CA LL

Senior Member
Also wouldn't hurt to review the Davis Sterling Act which contains all CA law related to HOA's..but first and foremost is all correspondence thus far, CC&Rs and your rental agreement.

And I just read your original post and compared it with this one..they are nothing alike? The first implies the TENANT did physical damage, INJURED someone, etc. The other one implies a guest caused an evacuation but no injuries or physical damage. I or others on here are not mind readers LOL.
 
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Alaska landlord

Senior Member
It would seem that two options appear to remedy the situation.
1. Evict and fine the tenant for damages incurred. This will set an example to all the others
2. Tenant is liable for the damages and restitution and a formal letter to the HOA is in orde with the stipulation that the other offending party will never be allowed on the property again.
 

CA LL

Senior Member
In the case of a CA HOA..the OWNER is always liable directly to the HOA even if TENANTS caused the issue/damage. Then the OWNER must go after the tenant personally. The HOA contract is between OWNER and HOA not any tenants.
 

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