Tenant requesting to rent bounce house/waterslide
Tenant requesting to rent a bounce house and an inflatable waterslide from a local company to use on property for a birthday party. My gut tells me to say no to avoid opening myself up to the liability. This tenant has been very compliant with lease terms, never causes problems, ands always pays rent on time. However, the lease does not have any clauses pertaining to such matter (as of now). Is there anyway I can say yes and also protect myself? What would you do in this situation and how should I handle it? #newbielandlord
Well, a couple of thoughts:
1. If you have good insurance it really shouldn't be an issue;
2. The tenants could/should have renter's insurance with you named as additional insured, which would provide another buffer;
3. The bounce house people should have insurance and should be able to provide that to you upon request;
4. You could have them sign a waiver of responsibility for safe use. Or specify that they have to get some kind of group insurance policy if their intention is to have a big party with lots of guests bouncing around in there.
Not everything is a lawsuit in waiting. When in doubt just contact your own insurance agent; they'll give you good guidance on how to proceed.
Quote from @Christopher B Holbert:
Tenant requesting to rent a bounce house and an inflatable waterslide from a local company to use on property for a birthday party. My gut tells me to say no to avoid opening myself up to the liability. This tenant has been very compliant with lease terms, never causes problems, ands always pays rent on time. However, the lease does not have any clauses pertaining to such matter (as of now). Is there anyway I can say yes and also protect myself? What would you do in this situation and how should I handle it? #newbielandlord
Start by talking to your insurance agent and ask what your liabilities are related to injuries from this type of equipment and event. Ask if it makes a difference that he tenant told you or not.
Ask if the tenant can acquire renters insurance to serve as a buffer between lil Timmy's broken arm and you.
I you're at risk and not covered, or even if you're at risk and covered, I'd say no they need to go to the park with that.
Did you require your tenants to have renters insurance? This isn't a unique situation. People get bounce houses all the time. If it is on a grassy area, they should be fine. You can ask that the tenants sign something indemnifying you of any damage.
@Joe Martella The tenant does have renters insurance. I'd like as many buffers as possible as it will be a large party with lots of children. So I like the idea of the tenant signing a waiver or something that would indemnify me of responsibility/damages as @JD Martin and yourself mentioned. I'll also be calling my insurance agent to be sure I'm covered.
@Joe Martella anyone know what the cost of renters insurance is?
I personally do not know. But I believe it is only a couple hundred dollars since it isn’t covering the structure and is only liability. I require it for all my rentals and I am listed on the additionally insured. I know that it is not cost prohibitive.
Quote from @Steve O.:
@Joe Martella anyone know what the cost of renters insurance is?
Most of our renters report it costs them anywhere from $8-15 per month. I had our agency do a quote for someone not long ago and it was $12 per month. This was with $300k of liability coverage.