Water Bed…
Question
The tenant in my rental house plans to buy a water bed. He plans to put it upstairs and I’m concerned about the substantial damage that could occur should it leak. Can I prevent him from doing this?
Answer
A very few states have a statute that deal with water beds. However, in almost all states it will likely depend primarily upon the lease agreement. Unless regulated by your agreement you may have difficulty prohibiting it or otherwise controlling use.
A few states do allow a higher maximum security deposit when water beds are present. However, unless your state has such a law and the law provides for an automatic increase, you may have difficulty collecting the increase if not discussed in your lease agreement unless the tenant is willing to voluntarily comply. Absent a law that allows such a higher maximum security deposit, you do not want to exceed the maximum even if the tenant agrees because that can have significant penalties under the laws of many states.
Another approach if a higher deposit is not allowed by your state’s laws is to require renter insurance policy with liability coverage that covers a water bed. Again, if not covered in your lease agreement, you may have difficulty requiring the insurance unless the tenant is willing to voluntarily comply. You should require that the policy name you as an additional insured so that you will be notified if the policy is cancelled for any reason.
Lease agreements should include a clause that discusses the issue and your requirements for allowing water beds, aquariums, or other items that could discharge a lot of water upon a failure. Furthermore, it is a good idea to have a question in the application form that asks whether the applicant intends to have such items.
All the above being stated, your landlord business insurance should cover damages, so your maximum loss should be limited to your deductible amount plus any extra resulting vacancy not covered by your policy. You should read your policy and/or talk with your insurance agent regarding the matter. A tenant would likely be found liable for any and all damages (net of insurance proceeds) resulting from a failed water bed or aquarium. However, as for any tenant damage beyond the amount of the security deposit, the landlord may need to file a lawsuit and collect on a judgment in order to receive compensation.