June 10, 2011

The Importance of passing on Maintenance and Risk to the Landlord Client

Real Estate Excellence received a call from a Member recently in relation to the following situation;

·       During a routine inspection in May, it was noted by the Property Manager that several floor boards were loose. The tenant advised the Property Manager that she will fix it and not to worry.

·       The following week, a visitor to the rental property sustained an injury due to one of the loose floor boards. The injury caused was facial and the visitor has since had to get medical treatment including X-Rays.

·       The visitor is now stating that they will be taking action against the agency for negligence.

·       The Licensee for the Agency has been advised to notify their professional indemnity insurer immediately for further advice

The key questions here are

·       Did the property manager pass the known risk to the lessor clearly and seek instruction?

·       As this was a safety risk, was instruction for repair sought for immediate rectification?

·       If the agency cannot prove this occurred, they may be in a higher risk situation in this case due to alleged negligence.

Real Estate Excellence has best practice policies, forms and procedures to assist in effective risk management in regards to routine maintenance. All Property Managers are encouraged to ensure that there are effective systems in place for sound risk management in relation to maintenance and routine inspections. Private training and consultancy services are provided by Real Estate Excellence.

No comments:

Post a Comment