Need Help with Tenants and Residential Elevator

[Zack Dasbur]

Hi Everyone, 

I have been buying and renting out high-end townhomes for 4 years now. One of my recent acquisitions I purchased has a private four story residential elevator. The unit is brand new and I have been living in there for the past six months. I recently decided to move to another property and I have tenants and a lease signed for December for my home with the elevator. 

I am a bit worried about my elevator and safety/liability. Do I need to make an addendum for the tenants explaining rules for an elevator and have them sign it so they understand? I am a bit worried in a worst case scenario if something were to happen. I am going to have the elevator inspected by the company that installed it regularly. I obviously can't control how my tenants use it though/who they invite to the house. 

Basically can I make an addendum that covers me if they treat it poorly and it affects someone's safety? Has anyone been in a similar situation? What would you do/go about it in my situation? 

Thanks for your time!
 

[Greg Weik]

@Zack Dasbur I believe your first contact should be with a real estate attorney to ensure you have an elevator addendum specific to your unit.  

Said addendum will incorporate everything from the operation, maximum weight limit, whether it can or cannot be used for moving furniture, how repairs are handled, exculpatory language in the event the elevator is out of service (i.e., you are/are not required to provide any rental credit), how power outages are handled, etc. Your addendum will be part of the file for this townhome and can be used with all future leases.  

It's not just a question of insurance coverage, it's imperative that tenants sign off on the property usage of the elevator, permit routine maintenance inspections, a requirement to report any potential repair issues with the unit, etc.