How should I proceed?

[krystal]

This query covers both property management and legal issues.

On a recent property inspection a tenant told me that she is minding two children several times a week for a friend. My tenant has recently quit her job because her daughter is ill and in and our of hospital. My tenant is minding the children from home (my property) to earn income.

My current public liability insurance does not cover this. I phoned my tenant to let her know this and she said she would get insurance cover herself.

I feel compassion for my tenant because of her daughter's illness but I am concerned that my tenant has commenced the child-minding without my consent.

Even if she were to obtain her own insurance - how can I be sure that it is adequate.

Any thoughts on how I should proceed would be greatly appreciated.

Kris

 

[sbe]

Hmmm... difficult one.

I think your concerns are legitimate, but then, she is paying to have use of the property. In many ways, its like her having a few more of her own kids (in terms of wear & tear), but there's the legal risks involved.

I'd be tempted to look into having some paperwork drawn up that says you give permission for her to mind x children for x hours (or whatever suits without being overly restrictive), and that the tenant is responsible for any public insurance and totally indemnifies you in the case of any claim etc....

Any thoughts from our legal forumites???

 

[geoffw]

The lease document I've just seen from the ACT specifically excludes paid child care activities- that may be for the public liability issue. You might ask to see her insurance documents as a condition of allowing her to break the lease conditions (if that clause is applicable to you).

 

[krystal]

Geoff

I just phoned the Real Estate Institute of ACT and was told that there was nothing specific in the Act so I am a bit confused.

Can you please tell me where I can get a copy of the lease or act that refers to the specific exclusion of paid child care activities?

My property is in the ACT. Any info would be much appreciated.

Thanks
Kris

 

[geoffw]

Krystal,

That was just something I saw in my lease document- I will have to wait until tonight to look.

Somebody did post a link to ACT lease conditions a while back.

 

[WillG]

Hi Krystal,

I would be concerned that your tennant has quit her job and may have difficulty paying rent.

 

[krystal]

That's already happening Will. She has been late paying her rent. I feel a bit caught between a rock and a hard place.

 

[geoffw]

krystal,

The conditions were in an attachment to the lease- from LJH. I've eliminated the agency just in case.

I knew it was in there- I did not know it was an attachment.

Sorry Krystal, that won't help you.

An advantage of having an PM manage a property perhaps?

Point 6 covers the child minding.

But, interestingly enough, point 3 puts light globes as the tenant's responsibility. That has been mentioned previously as a little know landlord's responsibility.

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[ EDIT: moved image to photo gallery and replaced with image link - Sim' ]

 

[krystal]

Geoff
You are right. Having a PM can help but I like doing the job myself because every time I encounter a problem such as this I have to find a solution and so learn from the experience.

Thank you for you posts. You have helped me to think this through. I was thinking that I would need a specific clause relating to child care but have just read through the lease again and I think that clause 69 holds the key.

"Unless otherwise agreed in writing, the tenant shall only use the premises for residential purposes".

Regards
Kris