Let’s hear it for liability.
Just kidding. No one gets excited about the risk they take on renting out properties.
And there are lots of risks. You have to make sure you’re protected.
Here are some of the liability issues to look out for when you’re renting out a home or preparing to rent out a home.
Maintenance Liabilities and Vendor Selection
Avoid liability by hiring only professional vendors who are licensed and insured.
Usually, unlicensed workers will cost a bit less than professional vendors and contractors, but a lot can go wrong. They could get injured and fall from a roof or a ladder. If they’re not insured, you could be liable for their medical expenses, lost wages, and additional penalties.
If an unlicensed worker makes a repair that ends up harming your tenants or causing further damage to your property, you’ll be left with unpleasant disputes as well as potential lawsuits and claims.
Insist on seeing the paperwork that proves licensure, insurance, and workers’ compensation coverage before you hire anyone to make repairs or do work at your property.
Documenting Property Condition
Written documentation, including photographs and videos, is essential to protecting yourself from liability as a landlord. You need a reliable record of your property’s condition when a tenant moves in. You’ll compare that to how the property looks when the tenant moves out. If you try to make deductions from the security deposit without the right evidence, you could be liable for penalties that exceed the amount of the security deposit.
Good recordkeeping can also help you avoid tenant disputes, court battles, and even innocent misunderstandings. Hold onto receipts, inspection reports, tenant notices, and maintenance requests. Ask for all non-emergency repairs to be made in writing so you can track the date the request was made and the work that was done.
Maintain Property Insurance for Your Rental Property
Insurance is an excellent way to protect yourself. It’s especially important when we’re talking about liability.
You’ll need to provide basic coverage for your property, which is insurance against fire, floods, vandalism, theft, and other catastrophic events. You’ll also want liability insurance that protects you in case someone is injured at your property. Look for additional insurance that will cover things like loss of income.
It’s a good idea to require renter’s insurance of your residents. While your own policy will cover your property and liability, the personal items belonging to a tenant are not covered. If there’s a flood and a tenant’s computer or television is damaged, there won’t be any coverage unless renter’s insurance is in place.
Work With Professional Bellevue Property Managers
Professional property management companies can do a great job protecting you from risk and liability. With a property manager leasing, managing, and maintaining your property, you’ll avoid making potentially expensive legal mistakes. You won’t have to get into any emotional tug-of-wars with your tenants, and you’ll know that your property’s condition is being protected. It’s nice to have the extra buffer and the added protection.
We can make sure you’re not taking on any additional liability.
It’s why we call ourselves Gladiators.
Please contact us at Real Estate Gladiators. We serve Monroe, Issaquah, Bellevue, Everett, Lake Stevens, Kirkland, and other cities in and around King and Snohomish counties in Washington State.
