Tip of the Month - June 2008
Source: Essential Facts-Real Estate Management
Joseph DeCarlo-WG&L (Warren, Gorham & Lamont)
maintenance tasks are performed by Independent Contractors.
Although there is less liability risk for the Landlord in this
situation, he or she should still take care not to be negligent in
selecting the Contractor. When dealing with repairs requiring
special skills (e.g., electrical work-repairs to high-pressure plumbing
systems), Landlords should select a licensed Contractor, with
sufficient bonding and insurance.
If an unlicensed contractor is used,
and an accident occurs, the Landlord can be held liable for any
resulting damages. Furthermore, some insurance policies may not
cover damages if the work was not performed by a licensed
Contractor. If, for example, an unlicensed handyman improperly
connected a new gas heater which later exploded, injuring Tenants, the
insurance company could claim gross negligence on the part of the
Landlord, and deem that the damages ensuing from such negligence are
excluded from coverage under the policy.
Tip from Crossett Real Estate Services
the time to meet with your contractor of choice and discuss the subject
and goal of the proposed project: Make sure a clear written job
description is presented, including but not limited to copies of
insurance for all persons (roof work requires special
coverage)-contractors vehicles parked on the property? what about
cleanup & disposal? Are utilities needed-water, electric, heat,
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This web page was updated on 05/28/2008.