Tenant seeking compensation for an injury in her apartment

[Ryan Judah]

Hey BP Community - 

I prayed this day would never come, but I knew it probably would if I continued to grow my portfolio. This post is to get as much guidance on the next steps as possible so I am prepared to protect, defend, and win. 

So here is a brief overview of the situation: 

- Our property manager signed a lease 3/22/22

- On 9/2 the tenants rent was late, no communication from the tenant as to why. This was the first time she has paid late.

- On 9/12 we were notified by our landlord that the tenant put in a work order (9/5) to notify us she fell and broker her cheek bone and leg on the transition strip in her unit. Our PM immediately (on 9/5) dispatched maintenance to assess any needed repair but couldn't reach the tenant because she was supposedly in the hospital.

- On 9/12 our PM was able to speak with the tenant and she shared photos of the transition that needs repair. Our PM communicated to her that they would schedule it ASAP. She then communicated that she will be unable to make her rent payment as she is waiting for state funded assistance due to an inability to work.

I will mention we have a very detailed move in report with descriptions of the flooring condition (new) as well as photos. Prior to the incident that happened on 9/5, we have not received a work order from the tenant related to the floors once.

Looking for your guidance here BP community on the next steps we should be taking. Thank you in advance for any and all thoughts, guidance, advice you can offer!

[Greg M.]

Does her car lender care that she is unable to work or do they want payment when it is do?

Does her cell phone carrier care that she is unable to work or do they want payment when it is do? 

Do her credit card companies care that she is unable to work or do they want payment when it is do?

The same is true for the rent. To not have any money since they are not working is either a lie or they have lived life mismanaging their finances with no savings and that is not your problem. 

Just because she injured herself in your unit does NOT necessarily make you liable. The transition strip didn't seem to be an issue with prior tenants, she didn't bring it up upon inspection or the 6 months she has been living there, and you/the PM never noticed an issue. Sounds like no one other than her is to blame for the injury. Accidents happen and there isn't necessarily a boogieman. 

Assess the transition. Don't be quick to fix/adjust it as that can indicate liability on your part. Document it with pictures. Use a level and/or ruler to measure any variances in the pictures. 

If she mentions suing, compensation, or a lawyer, just let her know that your insurance company will handle everything and cut off ALL talks with her about the situation.  Your title says she is looking for compensation, but nothing mentions it in the post. 

Feel free to no assess late fees ad give her a little extra time to pay the rent. You'll want to be seen as caring if it gets to court. However, don't be a ***** and let her run over you. 

[Richard F.]

Aloha,

It does not sound like you have notified your insurance company of a possible claim yet. This should have been done as soon as the word "compensation" came out of the Tenant's mouth.

You state that you have photos and documentation of this Tenant's move in conditions, hopefully these will include images of the specific transition strip. Provide this to the insurance company also, along with photos your PM should have taken on initial response to the 9/5 work order, and copies of any associated emails/work orders and repair invoices. The repair person should have included a statement of their findings as well.

I am assuming rent is due on the first, so by 9/5 it would already be "late", and has nothing to do with the fall incident. She would have also already been paid through the end of the prior month, typically.

[Kim Meredith Hampton]

Ryan

Yep, comes with the territory unfortunately!!! We live in a litigious world and people are always out to get us. Really sucks

I’m glad that your PM takes good before photos, they will come in handy. Also a copy of new flooring invoice helps. Maintenance log etc…

You probably should open a file with your insurance company right away. We had something very similar in a property we had purchased with the tenant already in place. She claimed a piece of drywall came down and hit her kid in the head. They went to the hospital, but nothing wrong, told the mother to give him some tylenol, no cuts or bruises.

Immediately the PM went to write up an incident report, called a vendor to do any repairs etc… Our vendor said looks like someone pulled it down. We also had photos and an inspection done when we took over and there were no leaks, stains or loose drywall at that time. The insurance company still ended up paying her some nominal amount even though the adjuster thought it was bogus too

[John Underwood]

I'm not seeing any negligence on your part. I would have this assed get pictures. Check the floor is level as someone else mentioned. Document how old the flooring is.

I would post a 24 hour notice that you are entering the unit to check for any needed repairs related to the transition area. Check your area for proper notice and timeframe.

I'd also ask how this happened. Dis something that she owns get left at the door that made her fall?

Is there a bad seal around the door that let rainwater in to make floor slippery? Find out the story before you get worried.

I would tell her that you wait up to 30 days for the rental assistance place to kick in.

[Nathan Miller]

Important facts.

1. There was no issue with the transition strip at move-in

2. The tenant never reported the issue before the mishap

Assuming that checks out and there's no other extenuating circumstances related to the accident, I see no possible basis for negligence on your part or the property manager's part.  Even so, it would be prudent to turn it into your insurance carrier as you are obligated to notify them of possible litigation, even if it's not unlikely to go anywhere.

[Michael Smythe]

@Ryan Judah been through this MANY times!:(

Unfortunately, this is usually a "money grab" by the tenant. 

Here are steps to follow:

1) Make sure she is served eviction notice for nonpayment

2) Its pointless to contact your insurance company until tenant serves a lawsuit. 

3) Tenant will hire an ambulance chasing attorney. Their first move is to send a threatening letter asking for compensation. Do not respond, waste of time.

4) IF attorney sends lawsuit, do NOT get mad, do NOT contact tenant. Submit the lawsuit to your insurance company and start a claim. 

5) Then do whatever your insurance company attorney tells you to do.

In the meantime, tell your PMC to NOT have any verbal contact with the tenant. All communication MUST be via email or text only. All texts and emails should be saved and shared with you to submit to insurance company.

Most of these cases get settled for $15-20k by the attorneys. It's a racket - insurance companies find it's cheaper to settle than go to court. The ambulance chasing attorneys also know this.

[Nathan Gesner]

Did she ask for compensation? I see it in your headline, but not in your timeline. Is she asking for cash? Reduction or waiver of rent? Has she filed a lawsuit?

You weren't negligent and the problem - if it even exists - was never reported so you couldn't possibly fix it.

I wouldn't do a thing until this tenant sues, then I would turn it over to the insurance provider.

In the meantime, I would demand she find a way to pay September rent. For all you know, she couldn't pay rent because she poured it down her throat, fell on a public sidewalk, and thought she could scare you into a free month of rent.

[Wesley W.]

Good advice above.

Just remember to keep the two issues separate (late rent, personal injury claim).  Do not treat her lack of rent payment any differently because of her claim.

Also,  just double check with your insurance agent to verify when to open a claim. Insurance carriers are notorious for denying claims , and you don't want to miss a notification requirement to them . My carrier, I think, needs to be notified within 3 days of the incident being reported to you.

Lastly, when it is in the hands of your insurance carrier you are going to have to learn to live with it in the background. It could take up to 3 years to settle the case .

[Kim Meredith Hampton]

@Wesley W. thanks for mentioning that about the timing on the claim. @Ryan JudahWhether they say claim or not, you should contact and make aware to your insurance company (just in case) if it becomes a problem, they may deny later. 

I manage thousands of habits and have seen a few things, some of the advice coming your way could possibly create a big problem for you down the road. 

Hope it’s all nothing, but positive thoughts coming your way in our crazy upside down world 

[Lorien Rollins]

Chiming in here to second @Nathan Miller and @Greg M.for the realism, I giggle because I have been in this same situation, except the tenant was walking her dog, at night, with no proper light, outside of the property (and outside range of our exterior lighting). Albeit popular to respond immediately to a tenants 'demand for compensation', I too do not see how you're liable here. She is still required to pay rent, and if she does not, move forward with late fee, letters, and eviction if necessary. Relieved your PM has move in conditions and images, this should help, should tenant attempt to sue. Good luck!

[Alice Lawrence]

@Ryan Judah Have an active insurance claim for alleged injury in the apartment. It's been about 1.5 years since tenant made the claim and hired a lawyer. (no coincidence that we recently started eviction proceedings!!) Tenant finally presented medical records and insurer says it's questionable and offered $2,500.00 compensation. I would say assess the situation: can you prove you have liability/no negligence, what's your insurance deductible - more expensive to fight it or pay out, do you want to keep the tenant, maybe a noncash offer like half month's rent deduction the will resolve.