Multifamily Properties Unit Break Ins- Whose responsibility?

Question

Hi BP,

Looking for a little advise on how to answer tenants regarding break ins in both cars and units on the property.

We just acquired this property 3 weeks ago and had our first break in last night.  We have already got all of the tenants on new leases and suggested to all of them to acquire renters insurance to cover any belongings inside of the units, as you can assume, most decided against this.

WE are working on getting better lighting for the complex in the parking lots and have it scheduled to be installed over the next few weeks.

Curious how you all are handling these situations? Whose responsibility is it to file the price report, talk to the police, and take action?

Greatly appreciate any feedback.

Best,

Patricia Steiner · Answer

My clients and I have a covenant in the lease that states that tenants will report all criminal acts to law enforcement directly. The intent was to ensure that tenants know that we have provided a safe and secure environment with lights, good locks, and even cameras in most cases - but they are responsible for keeping the property secure, not engaging in any activity that could result in criminal activity, and reporting any violation directly to the police. When we are told, we request a copy of the police report from the tenant and it's not unusual for us to call the officer for more information. Thankfully we've had very few incidents and we set the expectation with the lease signing.

John Thedford · Answer

The victims must file. Good move on improved lighting.

Daryl Luc · Answer

Burglary, criminal damaging to tenant owned property...it's the tenant who is to deal with the authorities.  Criminal damaging to your property, that's your responsibility to report.

Just curious, why is renter's insurance optional?  It should be mandatory, mentioned as such in the lease and within a specific time frame after the lease signing, a copy of the declarations page naming you/your company as other named insured should be sent to you.  This indemnifies you from hazards covered by their policy up to it's limits, doesn't cost anything, and only stays in effect for as long as they are a tenant.  If they cancel, you get a notice immediately directly from the insurance company.  I have this clause in every lease and, I also enforce the same language regarding auto policies.  Experience is what you get when you don't get what you want...and my stance is based on experience.  I have had tenants drive their car into the house causing massive damage...ie: expensive.  If you are like me, you carry high deductible....which you will pay if they are uninsured, or you have to submit on your policy and let the carrier subrogate back to theirs, if they have any property damage liability coverage to go after.  And even then, it's 50/50 you will recover 100%.  Faster, cheaper and easier to force the insurance as part of the deal.

Cassidy Burns · Answer

Thanks @John Thedford

Multifamily Properties Unit Break Ins- Whose responsibility?

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