And what liability does this mean for the small business owner?

I do not want to deal with the liability of allowing tenants to use the fireplace, so we have a clause in the contract that stipulates that the fireplace is not operational and is never to be used by tenants.

One is a debt and the other is a liability. 

Do not leave it as a personal liability. 

So the value of the lease (less expenses and rent from a substitute tenant) is recoverable if the tenant has the ability to pay and you are willing to pursue it to judgment and beyond.There is however Maryland law which permits a physician’s cert as to medical condition or required care to reduce liability to 2 months.

What liability are they avoiding by including this term? 

Banks aren’t lending to LLCs too much liability on their part.

I am wondering about liability as far as the pool is concerned, as I am in the process of renting each of these houses to families.  

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

The concern from others that I have asked about this say that this would open potential liability concerns from any issues/problems previous owners.