Roof Leaked, Dresser Was Damaged: Who Pays?

Robert Griswold | Steven R. Kellman | Ted Smith
13-Sep-1998 Sunday

This column on issues confronting renters and landlords is written by Certified Property Manager Robert Griswold, host of Real Estate Today! (KOGO Radio) and by attorneys Steven R. Kellman, director of the Tenants' Legal Center, and Ted Smith, principal in a law firm representing landlords.

Q: The homeowners association installed a new roof on a rental condominium we own. It then sprang a leak. We immediately called the property managers to have it repaired. As luck would have it, more storms came and it took several repairs to fix. Tenants were told where the repairs stood and were advised to move their dresser, which had suffered minor damage after the leak first was noticed. They waited a few weeks before notifying us, however. Now, they have requested that we replace the dresser because of the damage. We offered to have the repairs done by a professional carpenter. That offer was rejected. We feel responsible for a portion of the damage, but not all of it. If the tenant takes this matter to small claims court, what factors may the court consider?

A: Griswold: Unfortunately, these cases often end up in small claims court. There are several factors for the courts to consider, including the tenant's obligation to notify you immediately to mitigate their damages.

In this case, you were not notified for a few weeks after the initial leak. Your situation is further complicated because your rental is in an association.

Generally, the roof is a common area that is subject to the control of the homeowners association and the owner has no ability or legal standing to make any repairs directly and must go through the property manager or board of directors. So, it is not unusual for a reasonable delay before repairs are made in this type of scenario.

An additional consideration is if the leak occurred during the heavy rains this past winter when it was virtually impossible to receive even a return phone call from many roofing contractors.

Your tenant should make a claim under a renter's insurance policy.

It sounds like you would like to amicably resolve this situation, so you should contact the tenant as soon as possible and seek agreement on a fair amount to reimburse them for their damages.

You may also consider contacting your association property manager to see if they can seek reimbursement for the damage from the roofing contractor.

Depending on the source of the leak, and because of the failed efforts to fix it, the roofing contractor may offer to cover a portion or all of the reimbursement made to your tenants.

Q: I just rented out a condo and took an out-of-town check as the security deposit. Friends tell me that was stupid. Is it?

A: Smith: We need to talk.

As a landlord's attorney, the rule is never give up the keys to the unit until that out-of-town check clears.

If you took a poll, most savvy landlords get cashier's checks or money orders for all upfront money, including security deposit and first month's rent. The worst mistake you can make is to take a check for the rent and deposit, and give out the keys, only to find out after you have given possession that the check bounced.

You're stuck with having to do an eviction at that point.

Griswold: I couldn't agree more. I remember hearing a seasoned property manager say that she accepts personal checks for the move-in since she wouldn't rent to a prospect if she didn't trust them.

Recently she confided to me that things aren't like they used to be and she has had several checks bounce when everything about the rental applicant seemed so positive.

Most likely you are not a major landlord with hundreds of units but rather the owner of a single rental condo. As a relative novice in the rental housing industry, you are the target for devious types who will take possession of your condo on a bad check. When you get your condo back in three months, I can guarantee it will be a disaster.

Establish clear and firm procedures that include a thorough applicant screening process and require a cashier's check or money order prior to move-in.

Don't forget that cashier's checks and money orders only indicate that they will not be returned for insufficient funds. Banks will stop payment on cashier's checks and money orders if they are reported stolen or missing.

The vast majority of tenants are very responsible and honest, however, it only takes one.

IF YOU'RE A TENANT OR LANDLORD, the authors stand ready to answer your questions in this column, although letters cannot be answered individually. Write them at: Rental Roundtable, Homes Section, San Diego Union-Tribune, P.O. Box 120191, San Diego, CA, 92112-0191. Or you may e-mail them at rgriswold@retodayradio.com

Back to 1998 Rental Roundtable Index

Robert Griswold and the Real Estate Today! radio show strongly support the intent and the letter of all federal and state fair housing laws. As a reminder to all owners and managers of real estate, note that all real estate advertised is subject to the Federal Fair Housing Act, which makes it illegal to advertise "any preference, limitation, discrimination because of race, color, national origin or ancestry, religion, sex, physical disability, or familial status, or intention to make any such preference, limitation or discrimination." Additional state and/or local fair housing laws may also apply. Be sure to inform all persons that all dwellings offered or advertised are on an equal opportunity basis.

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Revised and Updated - Wednesday, April 26, 2006

Robert S. Griswold, CRE, CPM, CCIM, PCAM, GRI, ARM
Griswold Corporate Center
Griswold Real Estate Management, Inc.
5703 Oberlin Drive, Suite 300
San Diego, CA 92121-1743
Phone: (858) 597-6100
Fax: (858) 597-6161
Email: rgriswold.ret@retodayradio.com