This Probably Never Happened to you, but … No. 262
The tenant from No.3 called a few days ago to report that the grass in front of the building had not been cut for several weeks. As we had never paid a gardener, we called the owners discuss what options they would consider. As with several of our owners, these owners employ their gardeners directly. It turned out that years ago these owners worked out “a deal” with one of their tenants to “mow-and-blow”. The owners and tenant had agreed that the tenant would be given a rent reduction for this service for the owners. That tenant had moved out last month.
I was quite surprised, as we have tried to alert our owners to the risks of such arrangements. The problem here is that once such a financial relationship is established, the tenant becomes your employee, imposing the responsibility to be paying such employee in accordance with state minimum wage requirements. And, as your tenant becomes your employee, you also become responsible for any accident or injury that might befall such an employee. As an employer, the law imposes an additional burden on the “business owner” to alert employees to hazards of the workplace. The law would expect you to properly train the employee, to provide safe tools and safety gear, and ensure that the tenant follows industry safety procedures. Of course you can offset some of the risks involved by covering your employee with Workers Comp insurance. That is exactly what you should do, as the State of California requires that employees be covered. In this situation, the owner expected his tenants to use power tools (mower, blower, and edger), so the possibility of injury increased significantly over simply asking a tenant to water the landscape as a condition of their tenancy. The point here is to balance risk versus benefit when you consider compensating a tenant for work done at your property. If there is a foreseeable risk of injury related to the work, it just seems prudent to hire a professional who is properly licensed and insured. It has worked well for us.
Dear Readers: This article is the 262nd in a series based on the lessons we have learned the hard way. The contents of these articles are merely opinions of the writer. They are not intended as specific legal advice and should not be relied upon for that purpose. Our practice is in constant refinement as we adjust the way we operate to an ever- changing market. I appreciate your questions, comments, suggestions, and solutions. Contact C. Finley Beven, JD, CPM, CCAM, 99 S. Lake Avenue, Pasadena. (626) 243-4145. www.BevenandBrock.com Fin.Beven@BevenandBrock.com. www.RentBandB.com/Vacancies


