Legal Question in Real Estate Law in California
Work for rent
I recently bought a forclosed bank owned property which I am the only one that holds title. My nephew and friend have agreed to fix up the property in exchange for renting a room for each. There is also 1 dog that they are bringing. What type of form would I need to secure any liability I may have or a contract they could sign. I would be renting month to month and the state is California. County of L.A. Thankyou
2 Answers from Attorneys
Re: Work for rent
First of all you will need to buy homeowners' insurance before you let anyone onto the property to do any work whatsoever, because homeowners' insurance will not only cover you for possible liability, but also your household employees for workers' compensation.
Re: Work for rent
You will become a landlord and the other guys will become tenants. This is a special relationship in many respects, one of which is that the landlord cannot "contract away" liability to the tenant for defects in the premises, etc.
Also, there are aspects of an employer-employee relationship, which also has limitations on what the employer can "contract away" and a large set of duties imposed by law.
Your best bet is insurance. See an agent who will take the time to listen to your plans and make recommendations as to a policy that handles both landlord-tenant and workers' comp. requirements. Be sure the agent understands (and the policy covers) two persons performing work at the same time.
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