Are Landlords Liable for Tenant and Guest Injuries?

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This post was written by Jeff O’Brien for Simply Residential Property Management Magazine.

Can you be held liable when a tenant or guest is injured on your property? More importantly, what steps can landlords take to minimize liability for these injuries.

Common Law Duty – General Rule; Exceptions
For a common law negligence claim, one must prove (1) the existence of a duty of care, (2) breach of that duty, (3) proximate causation, and (4) damages. White v. Many Rivers West Limited Partnership, 797 N.W.2d 739, 743 (Minn. Ct. App. 2011). When it comes to the liability of landlords for tenant injuries, however, Minnesota courts have long held that landlords generally owe no duty of care to their tenants and are not liable for damages caused by defective conditions on the leased premises. White, 797 N.W.2d at 744 (Minn. Ct. App. 2011), citing Oakland v. Stenlund, 420 N.W. 2d 248, 250 (Minn. Ct. App. 1988).

Several exceptions to the general rule exist. A duty of care may exist if the landlord: (1) has willingly undertaken to repair the premises and done so negligently; (2) retains control of certain areas of the premises; or (3) is aware of a hidden hazard on the premises by the tenant is not. White, 797 N.W.2d at 744, citing Gradjelick v. Hance, 646 N.W.2d 225, 231 (Minn. 2002).

Negligent Repair Exception
If a landlord assumes the duty to correct a defect on part of the property when not required by the lease to do so, “the landlord must bear the burden of failure to make a good job of it.” White, 797 N.W.2d at 744, quoting Canada by Landy v. McCarthy, 567 N.W.2d 496, 504 (Minn. 1997). The duty of reasonable care to make a good job of repairs, however, requires only that “the necessary repairs [be performed] in a reasonable way.” Id. The landlord’s duty is not to make improvements to the safety of the thing repaired exceeding the safety standards otherwise imposed by law.

Retention of Control Exception
A second exception to the general rule occurs if the landlord retains possession of an apartment’s common areas, like stairs, halls, elevators or yard space. White, 797 N.W.2d at 745, citing Rosmo v. Amherst Holding Co., 50 N.W.2d 698, 701 (1951). Note that a landlord performing routine maintenance on windows in a unit or addressing a tenant’s complaints related to the windows does not fall under this exception. White at 745.

Hidden Hazard Exception
If a property contains hidden dangers that the landlord knows about and the tenant does not, the landlord must warn tenants about that danger, but the landlord has no corresponding duty to warn a tenant’s guests. White, 797 N.W.2d at 745, citing Oakland, 420 N.W.2d at 251. And no warning is required even for the tenant when the tenant knows of the dangerous condition or the condition is so open and obvious that the tenant can be expected or have discovered it on her own. White, 797 N.W.2d at 745, citing Johnson v. O’Brien, 105 N.W.2d 244, 247 (1960).

Contractual Duty of Care – General Rule
A landlord may contractually create a duty to maintain the leased premises. White, 797 N.W.2d at 746, citing Dyrdal v. Golden Nuggets, Inc., 672 N.W.2d 578, 587 (Minn. Ct. App. 2004), affirmed, 689 N.W.2d 779 (Minn. 2004). When a lease contains no stipulation on the subject of maintenance, generally “there is no implied covenant on the part of the landlord…that the premises are or will prove to be suitable for the tenant’s use.” White, 797 N.W.2d at 746, quoting Krueger v. Farrant, 13 N.W. 158, 159 (1882). But if a landlord expressly agrees to maintain a part of the lessee’s premises, he then creates a duty to exercise reasonable care. White, 797 N.W.2d at 746, quoting Drager, 495 N.W.2d at 885. However, a landlord’s promise to repair parts of premises for safety purposes is not an express agreement to repair to a certain standard. White, 797 N.W.2d at 746, citing Normandin v. Freidson, 233 N.W. 14, 15 (1930).

Jeffrey C. O’Brien is an attorney with the Minneapolis based law firm of Lommen Abdo, P.A. and a MSBA Board Certified Real Property Specialist. He can be reached at (612) 336-9317 or via email at jobrien@lommen.com.

Celebrate Black History Month

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February is Black History Month; the annual recognition of African-American history and accomplishments. Originally created in 1926 as a week to coincide with the birthdays of Frederick Douglass and Abraham Lincoln, it was officially expanded to the full month of February in 1976. At the time, President Gerald Ford urged Americans to:

“Seize the opportunity to honor the too-often neglected accomplishments of black Americans in every area of endeavor throughout our history.”

While the month allows reflection on the past, present, and future, it’s also a time to celebrate accomplishments. There will be celebrations of African-American music, literature, art, science, food, film, politics, sports, human rights and so much more.

Simply Residential Property Management is proud to recognize and celebrate Black History Month in February.

Understanding Minnesota’s Cold Weather Rule

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This post was written by Jeff O’Brien for Simply Residential Property Management Magazine.

In Minnesota, when temperatures dip in late fall, a law known as the “Cold Weather Rule” kicks in. The Cold Weather Rule set forth in Minnesota Statute Section 216B.096 is designed to protect tenants and homeowners from having their heat source permanently disconnected in winter (defined by law as October 15-April 15) if they are unable to pay their utility bills. The Rule, implemented by the Minnesota Public Utilities Commission, provides that a utility may not disconnect and must reconnect a customer whose household income is at or below 50 percent of the state median income if the customer enters into and makes reasonably timely payments under a mutually acceptable payment agreement. It does not, however, prohibit shut-offs, and a tenant who fails to comply with the agreed upon payment agreement could trigger a shut-off which, depending upon the utility involved, could result in damage to the property due to pipes freezing and bursting.

Utility customers whose household income is above 50 percent of the state median income also have the right to a payment agreement to prevent disconnection or get reconnected that takes into consideration the customer’s financial circumstances and any other extenuating circumstances of the household.

The Cold Weather Rule applies to all natural gas and electric utilities. It does not apply to delivered fuels like fuel oil, propane and wood. The Cold Weather Rule requires a utility company to notify its customers in writing before it disconnects their heat. The notice must be in easy-to-understand language and must contain the amount due, the date of the scheduled disconnection, the reasons for disconnection, and options to avoid disconnection.

A regulated public utility must notify a customer of disconnection at least seven working days in advance. An unregulated utility; i.e., a cooperative or municipal utility, must notify a customer of disconnection at least 15 days in advance. A disconnection may not generally happen on a Friday, Saturday, Sunday, a holiday or the day before a holiday, while an appeal is pending, or after the close of business on the scheduled day of disconnection.
For landlords, it is important to note that the Cold Weather Rule does not prevent a landlord from evicting a tenant or refusing to renew a lease that expires during this “cold weather” season. In fact, if the lease requires the tenant to pay utilities and the tenant fails to make timely payments pursuant to the agreed upon payment plan, such nonpayment could constitute grounds for eviction.

For questions about the Cold Weather Rule, contact your local utility or call the Consumer Affairs Office of the Minnesota Public Utilities Commission at 651-296-0406 or 800-657-3782.

For questions about how to handle an eviction during the cold weather months, be sure to contact a knowledgeable attorney.

Jeffrey C. O’Brien is an attorney with the Minneapolis based law firm of Lommen Abdo, P.A. and a MSBA Board Certified Real Property Specialist. He can be reached at (612) 336-9317 or via email at jobrien@lommen.com.

Common Eviction Mistakes to Avoid: Dealing with Abandoned Property After an Eviction

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This post was written by Jeff O’Brien for Simply Residential Property Management Magazine.

It’s no secret that Minnesota’s landlord-tenant laws are weighted heavily in favor of tenants. As a result, a seemingly straightforward eviction action is fraught with legal pitfalls for an unsuspecting landlord.

Perhaps the worst provision of Minnesota landlord/tenant law pertaining to evictions is Minnesota Statute Section 504B.271, which sets forth a landlord’s obligations in dealing with a tenant’s belongings after the eviction. This law essentially requires landlords who have already lost money on non-paying tenants (by not receiving rent payments per their lease and having to pay for an eviction) to take time – and possibly additional money – to deal with an evicted tenant’s remaining belongings in a manner other than simply disposing of them.

When an evicted tenant leaves behind personal property in the leasehold premises, there are options for the landlord to deal with those belongings. The property can be moved and stored at the tenant’s expense and eventually sold or discarded. Commonly, this is done after an eviction with the assistance of the Sheriff who will be a part of the processing of the unclaimed property.

The property can be stored in the original leasehold premises. Remaining property must be inventoried on a form provided by the Sheriff. That inventory must list the tenant’s items in the landlord’s control and a description of their condition. The reason it is important to document the property present and its condition with the Sheriff present is that the landlord is liable for any damages to the property caused during moving or storage if reasonable care was not exercised under the circumstances. The form must also have the date and signature of the landlord with the contact information of a person authorized to release the property. The name and badge number of the Sheriff or deputy present must also be provided. The Sheriff will retain a copy of the inventory list and another must be sent by First Class Mail to the last known address of the tenant. Also, a good faith effort should be made to reach the tenant by telephone.

The property can also be stored off site in a storage facility of reasonable security. Any moving should be done by a licensed and bonded moving company. The moving company will likely do the inventorying for the landlord and return a copy to the Sheriff. If the property is stored off the premises, the costs of moving and storing can be charged to the tenant. Additionally, the landlord has a lien on the property if stored off-site, but not if it is stored on the premises.

Anytime prior to 28 days after the property was abandoned, the tenant can mail a letter to the landlord requesting a date and time to retrieve their property. Since the property rights are in favor of the tenant, landlords are prohibited from withholding ex-tenants’ property in lieu
of past rent, damages or other expenses, except that a landlord may apply a reasonable amount of proceeds to their costs incurred in removing, storing and caring for the tenant’s personal property.

Twenty-eight days after notice of or reasonably apparent abandonment, the landlord can sell or dispose of the unclaimed property. Two weeks prior to the sale of the property, the landlord should make a reasonable effort to contact the tenant. The landlord should personally give written notice, or send notice by certified mail with return receipt requested to the tenant’s last known address or likely living quarters if known by the landlord of the sale. The sale must also be posted in a conspicuous location at the premises.

The profits of that sale can be used to compensate the landlord for storage, back rent, damages and other debts of the tenant. After the landlord’s costs are deducted any excess profits belong to the tenant if he or she writes to request them. The profits cannot be held from the tenant as leverage for other actions because the tenant has the right to that property and the profits gained. If possession of the property is taken illegally, before the landlord could reasonably believe it was abandoned, the landlord is responsible for the costs. Also, if the premises is not abandoned and the landlord does not have reasonable belief to think so, removal of the property is considered an unlawful exclusion and will be dealt with accordingly.

Minnesota’s eviction laws are complex, frustrating and time consuming. If you are unsure of what to do when your tenant is in default of the lease, it would be money well spent to engage competent legal counsel to navigate the choppy legal waters.

Jeffrey C. O’Brien is an attorney with the Minneapolis based law firm of Lommen Abdo, P.A. and a MSBA Board Certified Real Property Specialist. He can be reached at (612) 336-9317 or via email at jobrien@lommen.com.

Should you become a landlord?

Rental HomeInvesting your money is a difficult task. Choosing where your money could thrive is a decision not to be taken lightly, and much of how you decide to invest should depend on the kind of person you are.

With housing prices dropping, now could be a good time for you to invest in property. But whereas investing in a property for yourself could earn you money in the long run, the majority of property buyers today need a regular flow of income to help keep up with mortgage repayments.

Investing in property that you can then lease could be the answer, with regular rent payments, helping buoy your finances and eventually leading to a solid income. But before you decide to invest in a buy-to-rent property, there are several questions you should ask yourself.

Are you connected?
Leasing property comes with its own unique challenges, one of which is maintenance and repairs. While many involved in renting property for a long time have built up a trusted list of contractors, first time landlords often have to rely on people they don’t know, which makes finding discounts and enhancing your profit difficult. If you go into the landlord game with several established contacts, repairs and maintenance can be cheap and easy. If you own property in the Twin Cities area, leasing your property through Simple Residential Property Management can take the hassle out of repairs. Their trusted full service maintenance department will be on hand to provide regular assistance to all your properties.

How handy are you?
If you enjoy doing repairs yourself and are capable of maintaining a property, then being a first-time landlord could be easier than relying on contractors. This will also save you money in the future, although it will take up more of your own free time.

Do you deal well with people?
Being a landlord requires you to interact regularly with all kinds of people. Having a good eye for who will be a responsible tenant and who is going to cause you acrimony will save you time and money. You have to accept that the majority of tenants will not care for a property as much as you the owner would like them to. To be a successful landlord, you have to embrace peoples different values and focus on maintaining a positive relationship with them.

Can you cover your own costs?
While there will always be unforeseen costs to a property, there are several regular costs that will drain your overall yield. Before embarking on this venture, you need to work out a budget and consider just how little you can get by on. If you paid for the property with a mortgage, remember that the rent of your property will need to be high enough to match this and cover the cost of repairs, maintenance, taxes and several other hidden costs. Remember that this is about turning a profit, so if the amount of rent required to achieve a profit is too high for the area, it’s probably not worth it.

Remember, you get out what you put in. Being a landlord isn’t for everyone, but if you’ve done your homework and know you can turn a profit, the financial rewards can be great.

Simple updates: The beginning of the year is a great time to tidy up

It’s a good time to reflect on repairs, updates or maintenance that needs to be accomplished; to make sure the rentals are fully occupied and make any changes necessary to make sure they stay that way; and to make sure properties are earning enough.

Repairs and Maintenance

Property ManagementRegular maintenance and prevention go a long way to make sure little things don’t end up costing far more than they should. Take some time at the beginning of the year to go through the property records. Have a look at the major  pieces in the house; the roof, water heater, heating/air conditioning units, etc. Perhaps the roof is getting on in years? Budgeting and planning for a new roof now, prior to leaks and damage, will save you considerable headache and money than waiting for a problem and having to not only repair but clean up the damage as well!

Sending a survey to tenants with detailed questions can also be valuable. The best people to tell you if a small problem is going to blow up down the road are the people living daily in the property. Detailed questions help to make sure that tenants who have gotten used to small issues don’t forget to report them. For instance, a sink that keeps backing up or a toilet that doesn’t flush quite right could be symptoms of a plumbing problem. Having a professional in now could prevent something simple, like a partially clogged drain, from turning into a sewage back-up that would require extensive cleanup.

Updating a property that is functioning

Rental PropertyConsistent updates, make sure that the rental is attractive to potential tenants, as well as making sure that the property isn’t losing you money. Updates to the efficiency of a property make sure you aren’t losing money. Have a look at the heating/cooling costs of a property. If they are eating into your profit, it’s time to update! First have a look at the insulation and windows of a building. If the windows are old and drafty or the insulation is insufficient, even a brand new heating or cooling system won’t fix the problem. If the windows and insulation are adequate, have a look to the units themselves. Purchasing a high-quality, efficient system will save you money on monthly expenses down the road.

Ensuring full rental

Property rentals that are empty do nothing but cost money. Now is a great time to assess any empty units and remedy the problem. Go through any empty properties, and make sure that they show well. Perhaps they need to be repainted a more neutral color, need some minor repairs or updates to be more attractive, or simply need a really thorough cleaning. Check out the neighborhood and make sure there haven’t been any changes that would affect the rental. Perhaps the price needs to be adjusted slightly to take the rental into a new market.

Remember, a rented property is bringing income to you, an empty one is costing you! Check the area and make sure the rental is appropriate prices. If it is the cheapest rental around and is unoccupied, perhaps think about updating it throughout and charging a higher amount to bring a better profit.

When I Get A Price Quote From Simply Residential Property Management, What Am I Getting?

When you are a property manager and you are seeking the services of a property management firm to help manage your properties, you will see many of these companies offer a free price quote in regards to their services. If you are unfamiliar with all the services that an experienced property manager can provide you, it is important to ask what services are included with the price quote. Understanding the services that are included in the quote will allow you to compare these with other management firms in order to get the best price for property management that is both high quality and reliable.

Property ManagementWith the free price quote you receive from Simply Residential Property Management you are receiving a myriad of important services. These services that property management agencies perform allow better relationships to form between property owners and tenants. They help foster this relationship by drawing up leases and being present at the lease signings of new tenants. These agencies also collect monthly rent from tenants and follow up with clients that have not paid rent through late notices and eviction proceedings.

Simply Residential Property Management will also handle the responsibilities of routine inspections and maintenance. These services are necessary in order for your properties to look and function their best both on the inside and outside so that you can retain current tenants and attract new ones in case of vacancy. With their price structure, the agency will also aggressively market your properties to potential tenants through print and television medium as well as through the internet. Other services that Simply Residential Property Management may handle include the acquisition of properties and any construction that may need to take place for improvements or continued maintenance.

These services are provided in exchange for a percentage of what is collected in monthly rent. In addition to the standard fees, there may be additional charges in regards to maintenance, repairs and any commissions that are collected. While the quote you receive from Simply Residential Property Management is very reasonable with the variety of services they provide, it is always wise to compare quotes and services to find the company that will best serve your needs for a reasonable price.Property Management

There are obligations and responsibilities that property management companies will not provide property owners and will not be included in the price quote. For example, property owners will have to pay their own property taxes and will have to know what those obligations are and take care them properly. Also, if there is a mortgage payment that is still owed, property management companies will not take responsibility for those payments.

It is important that if you choose a property management company you fully understand the services they provide and at what cost, and you also want to see if there are any hidden costs or fees. For over 22 years, Simply Residential Property Management has been providing property owners in the Twin Cities excellent management and maintenance services for an excellent price.