Dallas-Fort Worth Real Estate Investor Club

I need your help pls. I am a landlord of a condo on 2nd floor. My tenant has admitted via voicemail and text message
that she did didn't change the dirty filter in the A/C unit and that caused water to overflow into the unit right below on 1st floor and caused some damage. The owner of the unit on 1st floor is asking me for reimbursement of repairs to his damage. I want to find out what are my options as the damage to 1st floor unit was done due to my tenants negligence and as per lease agreement tenant is responsible. The person on 1st floor is threatening to to take me to court, however, he should be going after my tenant and not me. Please advise

Adnan,

First, I'm not an attorney. Negligence is an issue decided by a court. What appears to be a breach of a responsibility by a reasonable person to one, may not be when all the facts and circumstances are laid bare. Even if your tenant failed to change the air filters as required, a causal link to the damage in your neighbors condo must be established. This will require expert testimony. There are a multitude of substitute or mitigating factors which may be the cause for the damage or may have contributed to it, such as, door design, improper installation, failure of safety devices, and others. In short, you and your tenant are a long way from being proven the cause for the damage in the condo below.

Your neighbors action is with you as owner of the condo from where the water was produced (allegedly). If you are sued you may adjoin your tenant to the suit or sue them seperately for damages.

I've owned a condo in a high rise and have had some experience with water damage, both as the source of the water and the recipient of the damage from it. I don't believe the condo HOA insurance policy will cover anyones damage in this case as condos are a special type of real property where ownership is granted for an empty space. Interior walls, plumbing, electrical and fixtures are usually covered by a seperate condo owners policy. In both of my experiences, the insurance company that covered the damaged condo assumed responsibility and that owner was out a deductible. Negligence and a causal link are difficult to prove and attorney's fees can easily exceed the damage amount.

If I were you, I would suggest to the owner of the damaged condo that he/she contact his insurance company. This probably won't be received well as most everyone believes that the alleged source of the water is liable. Ask that he/she forward the response letter from their insurance company concerning the claim and then decide how to proceed. I would  not contact my insurance company till I knew that the damaged owner had done so or I was served with a complaint. If you want to speak with an attorney as Greg suggests, then call Milt. If the facts are as you have stated and the water leak has been stopped. I'd wait to contact an attorney till after I have been served. No need to pay for advice now since there is not ongoing damage, there will plenty time later to sort out the legal questions.

Remember , this advice is worth what you paid for it!

Thanks everyone for your help.  Much appreciated