This is the fifth article that provides some insight for landlords and owners regarding insurance issues as it relates to your property. Knowing these facts will help you to protect your asset as well as yourself in case of unforeseen occurrences. Be smart and be safe – it’s the right thing to do.

Disclaimer: These articles are intended to raise questions to review with your insurance provider or legal advisor. This article is not an insurance sales solicitation, legal advice or to be considered a comprehensive evaluation of all tenant risks.

Provided by Sterling Insurance Associates Ltd. – a consulting company

Who should keep records of keeping the property in a good state of repair?

The simple answer is both the Tenant and the Landlord.

Keep records of keeping the property in a good state of repair

Why?

Maintaining records of repair and maintenance to the Landlords’ commercial property provides evidence of reasonable steps being taken to keep a property in a good state of repair, reducing further damage and the exposure to liability from individuals entering the premises.

Property Loss Reduction

• Maintenance and repair records as to “water” usage equipment or fixtures; provides proof actions were taken to prevent damage to others’ property
• Maintenance and repair records as to “electrical” usage equipment; provides proof actions were taken to prevent fires
• The lease should require that hazardous conditions, any damage, or deficiency, or defect be reported to the Landlord and the Tenant is responsible to correct their equipment deficiencies
• Maintenance and repair records provide proof the Landlord took reasonable steps to prevent loss or damage
• Are inspection, repair and maintenance records kept as to the “properties” condition?

Liability Loss Reduction

• The Occupiers Liability Act places the duty to take reasonable steps to keep the property safe for individuals entering the premises on both the Landlord and Tenant (occupiers)
• In a lawsuit by someone for injuries or property damage, proof by the Landlord and Tenant that reasonable steps were taken to keep the property safe for individuals entering the premises can significantly reduce or eliminate the liability
• A 2007 Ontario Court of Appeal decision in Kerr vs. Loblaws – provides the standard to be met by occupiers “the standard of care imposes …. is a standard of reasonableness. It requires neither perfection nor unrealistic or impractical precautions against known risks” – not perfect but reasonable care under the circumstances
• Are inspection, repair and maintenance records kept as to the “properties” condition?

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