Sinkhole Risk Properties
Should You Really Manage That Property?
Your Owner told you that the property is in a sinkhole area, or you found out this information from someone else. Do you take on the account? Based on sinkholes that caused injuries and fatalities here in Florida, you may not want to assume this risk.
⚠️ Reality Check: No disclaimer or release of liability signed by the Tenant or the Owner would help you if you knew or should have known of the risk, and there is loss to person or property.
Understanding Sinkhole Risks
Sinkholes are a common geological feature in Florida, with varying degrees of risk across different areas. When managing properties in known sinkhole-prone areas, consider whether to JUST SAY NO or disclose known sinkhole activity to potential Tenants. Be aware that attempts to have Tenants waive liability for sinkhole-related issues may not be legally enforceable.
Risk Assessment & Management
Before managing a property in a sinkhole-prone area, investigate any history of sinkhole activity on the property or in the immediate area and consider the potential liability if a sinkhole-related incident occurs.
Avoid managing properties with known, serious sinkhole issues, a history of significant settling or cracking, or previous sinkhole remediation.
Balancing Risk and Legal Considerations
Carefully weigh the potential risks against the benefits of managing properties in sinkhole-prone areas. In some cases, we may decline to prepare leases for properties with known, serious sinkhole issues due to liability concerns.
While not every property with minor settling or foundation issues is problematic, it's crucial to thoroughly assess and disclose any known sinkhole risks to protect both the Property Manager and the Owner from potential liability. Add a question on your intake form and ask any potential Landlord who you may be thinking of taking on for management. Sometimes these little gems are not disclosed.
Watch: Managing the Sinkhole Risk Property
Dealing with sinkhole risk issues? Contact the Law Offices of Heist, Weisse & Wolk at info@evict.com or 1-800-253-8428.
