Working with a property manager can be a wonderful option for property owners. What level of liability do these groups assume?
Turning an investment property into a solid source of income is best accomplished by running a well-managed property, a process that is much easier when working with a property management company. Property management groups can offer countless benefits to property owners, but people are often confused regarding the liability that comes with working with these companies. In this article, we will explore what you need to know about property managers and liability.
Property Managers and Liability
When something goes wrong at a property, it can come with significant legal and financial concerns. Since this is the case, it is natural for property owners to wonder if they will be responsible for these issues when someone else is managing their property for them. Let’s explore this further.
Know Your Contract
Your contract will play the biggest role in determining whether or not your property manager will assume liability for certain events. Liability can be a concern in the event of a flood, bed bugs, or issues with a tenant. The truth is that the property manager will only be liable if your contract has language that demonstrates liability.
Most contracts have language that states that a property manager will be responsible for some circumstances. When a problem arrives as the result of one of these circumstances, they will generally be considered liable for the problem.
Understand the Risks
There is a lot of risks involved with owning an investment property, even if you aren’t managing the property yourself. When something goes wrong, it is important to know who is responsible for handling it.
For example, a property manager that promises security services might be held liable in the event that a crime occurs that they should have been able to stop with their services. However, that does not mean that they will always be responsible. Some circumstances exist outside of what you can reasonably expect from a property manager. Damage, tenant injuries, and unexpected circumstances can all fall to the property owner.
Recognize That Liability Will Not Always Fall to Property Management Companies
A property management company can help property owners to better manage their business, but that doesn’t mean that you should work with one to avoid liability. Property management companies are only responsible for so much, and there are instances where the property owner will be held liable for the financial costs associated with handling these problems. Being aware that you can be liable is very important. If you’re not sure what you are liable for, it is important to contact your property management company to learn more.
To enjoy the benefits that a great Aurora property management company can bring, you will want to work with a group that you can trust. Property managers can save you time, money, and headaches, so finding a good group can be a great step. Be sure to talk through your contract so you know when you are and are not liable for certain situations.