[RPPTL LandTen] Rule Violation Fines as Additional Rent

Mon Dec 2 10:15:20 PST 2019

Landlords must include language in leases to have late fees considered as additional rent. What do mobile home park owners have to do to have rule violation fines considered as additional rent? Does this also have to be in the lease or must it be in a prospectus amendment or could a landlord just publish a notice of rule change and go forward with the rule violation fine and include this amount in a 3 or 5 day notice just as with late rent?

Thank you for any/all thoughts and input.

Patrick T. Hogan, Esq.

Hogan Legal Services, P.A.

Pat at HoganLegalServices.com

(941) 952-5000

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From: landten-bounces at lists.flabarrpptl.org <landten-bounces at lists.flabarrpptl.org> on behalf of Harry Heist <harry at evict.com>
Sent: Thursday, October 24, 2019 6:31 PM
To: 'RPPTL Landlord Tenant Committee' <landten at lists.flabarrpptl.org>
Subject: Re: [RPPTL LandTen] Landlord Mandated Insurance

The additional interest is certainly allowed as all it is would be notification of a lapse.  “Additional interest” and “additional insured” are very different,

I have many of the same questions as Mike.

Interestingly, please see the bill that was introduced in 2014 but never went anywhere which almost makes it an “assumption” that renters insurance can be mandated.

At the time, there were 3 states that specifically stated that renters insurance could be required but Florida law has always been silent on this.

I have this nagging question as to whether the landlord can require renter’s insurance that has the liability coverage in it for damage to the owner’s property, like fires or floods, or if it is limited to the more basic policies which only cover the tenant’s personal property.

Some managers are including renters insurance in the rent amount and buying this insurance on behalf of the tenant.

In the mortgage world, if there is a lapse in insurance, the bank can pay for the insurance and charge the homeowner.

Please see the attached that many managers use where I never felt comfortable saying it was legal or not.

Harry

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From: landten-bounces at lists.flabarrpptl.org [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Mike Davis
Sent: Thursday, October 24, 2019 6:12 PM
To: 'landten at lists.flabarrpptl.org'
Subject: [RPPTL LandTen] Landlord Mandated Insurance

All

I am interested in fellow listserv members’ input on landlord mandated insurance.  I can’t find anything in Hauser or any cases directly on point that speak to insurance, insurance charges, or having the landlord listed as the “additional interest or interested party” in the insurance.  Further, I also couldn’t find anything (or am looking in the wrong places) regarding the issues of the landlord potentially falling into becoming an insurer or selling insurance.

I think the key issues that I have seen on landlord mandated insurance lease provisions are: (Assume the facts below are supported by appropriate lease provisions.)

1)      Can the landlord require a tenant have liability insurance in a minimum amount?  If so, can the landlord require that the landlord be listed as an additional interest (to be notified if the insurance lapses)?

2)      If the tenant does not have the required insurance, can the landlord force place the required insurance on behalf of the tenant and pass-through the premium charges to the tenant (as “additional rent”)?  Assume the landlord is charging the tenant only its actual costs of the insurance.  I don’t want to get into the quagmire of the landlord making a profit from the insurance.  That seems to me to be a clear-cut case of landlord selling insurance which I believe requires a license.

3)      If the tenant does not have the required insurance, can the landlord charge a “penalty” (as “additional rent’) while the tenant is in non-compliance with the requirement?

  1.  My thoughts are there aren’t any residential landlord/tenant statutes or case law on insurance.  Therefore, absent applicable laws in insurance regulation, the landlord can require it.  Since the landlord can require it, the landlord can require reasonable conditions, such as additional insured to be informed of policy lapse.  I have a concern that a court may find that requiring renter's property insurance to cover the tenant's property would be seen as a benefit to the tenant.  Requiring renter's liability insurance may be seen as less for the tenant and more for the benefit of the owner.  But a lot of lease provisions are for the landlord’s benefit.  I also think that, if the landlord does require liability insurance, the landlord should not require a specific company to avoid allegations of “directing” or “collusion”.
  2.  A “forced placement” doesn’t seem to be a “penalty” as the tenant is getting a benefit.  It can be argued that this is the landlord remedying (after notice to the tenant) akin to the landlord remedying in other rental situation.  Single family home rentals, tenant responsible for lawn, pool or spa care, 7Cure with warning that if not remedied landlord will remedy at tenant’s expense to avoid damage to lawn, pool or spa.  Multifamily rentals, the only thing that came to mind was tenant responsible utilities (electric or water), 7Cure with warning that if not remedied (turned on) landlord will remedy at tenant’s expense by putting in landlord’s name to avoid damage (mold, dead lawn).
  3.  In general I think that penalties in L/T cases are disfavored by the courts.  Rather than a penalty, the appropriate landlord response should be to follow the seven-day process or possibly to self-remedy with forced placement.

Mike

Michael Geo. F. Davis

Attorney at Law

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