All Forum Posts by: Gayle Eisner

@Ryan Fox and if you require renters insurance and have a cancellation clause in the lease in the case of habitability issues due to a disaster they still want you to provide replacement housing?    So glad not to be in California. 

@Ryan Fox so renters in california can hold you liable for their stuff and get attorney's fees even if you require renters insurance?  And you were not negligent, it was a coastal flood?  

Seriously ?

@Colleen F. - Yes, you can still be held liable.  Every response you take will be scrutinized - how fast you provided replacement housing, how fast you filed your insurance claim, how fast you refunded their deposit, ect.  The negligence can be in how you respond to the situation.  The laws you have to follow in CA are so specific that whenever a client asks me about a situation, I need to research the law.  It's a pain in the rear end for anyone that doesn't want to pay an attorney.

@Colleen F. - Yes, you can still be held liable.  Every response you take will be scrutinized - how fast you provided replacement housing, how fast you filed your insurance claim, how fast you refunded their deposit, ect.  The negligence can be in how you respond to the situation.  The laws you have to follow in CA are so specific that whenever a client asks me about a situation, I need to research the law.  It's a pain in the rear end for anyone that doesn't want to pay an attorney.

@Alex Olson- I use NREIG for some and a broker named Brian Caputo at Rosenthal Brothers for others.  If you have any other suggestions, feel free to shoot them my way.  

@Gayle Eisner- You could be sued personally even if your property is in an LLC, and even if the property is paid off. This actually happens quite frequently. When there are property damage issues, California landlord tenant laws allow the tenant to recover attorney's fees in addition to other damages. This means that a relatively minor issue can escalate into something much larger.

I hate to be the bearer of bad news, but that's just what I'm seeing.  Best of luck.  

*This does not create an attorney-client relationship.  It is for informational purposes only and is not meant as legal advice.   

@Gayle Eisner- You could be sued personally even if your property is in an LLC, and even if the property is paid off. This actually happens quite frequently. When there are property damage issues, California landlord tenant laws allow the tenant to recover attorney's fees in addition to other damages. This means that a relatively minor issue can escalate into something much larger.

I hate to be the bearer of bad news, but that's just what I'm seeing.  Best of luck.  

*This does not create an attorney-client relationship.  It is for informational purposes only and is not meant as legal advice.   

The biggest challenge will be insurance premiums in these areas.

Even for the "stuff naturally happens with the climate crowd", the fact is that we have had a LOT more extreme weather conditions in multiple areas and insurance companies have decided that doing business in those areas is not profitable for them, so they are packing up and going home. Consequently premiums are rocketing up, making profitability for investment properties drop a lot, plus if you live in those areas, it hits your pocketbook too

So I would personably not be worried about the weather itself, but more with the cost of living there and investing there due to the insurance premiums