[RPPTL LandTen] Arbitration Clauses in the residential setting

[harry at evict.com]

I have a residential REIT client (apartment communities) who wants to place
some arbitration language in his leases.

 

1. Security Deposits: I recommended against it as 83.49 clearly give the
tenant the right to have access to the courts etc and for the small amount
of security  deposit disputes that end up in court with attorney
representation of the tenant, by agreeing to arbitrate could actually
increase the costs and frequency of disputes and mediators/arbitrators are
not free. In other words, the system "ain't broke" let's not fix it.

 

2. Damages to personal property:  We run into a lot of cases where the
tenant's personal property gets damaged by flood, fire, mold, car is damaged
by landscaper etc.  I think an arbitration clause may work and be legal
here. Most leases have clauses that state that the landlord is not
responsible for the tenant's personal property. Whether this is in fact
upholdable by the courts is questionable as there is an implied warranty of
habitability. Most tenants believe that the landlord is not liable for
damages to personal property if that is what the lease says. 

 

3. Personal injury:    This one is a doozy and way out of my league.  Can an
arbitration clause be used to deal with slips and falls and other personal
injury matters?  My gut instinct is NO.

 

Thoughts?

 

Harry

 

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