Multifamily owners are no different: everyone’s heard of the Americans With Disabilities Act (ADA). But what many owners are not familiar with are the law’s requirements and how they can affect your property.
The Americans with Disabilities Act for Landlords And Property Managers
The Americans with Disabilities Act, commonly known as “ADA” is a federal civil-rights law protecting the rights of people with disabilities. The ADA places guidelines for access to: Employment State and local government programs, services and buildings Access to places of public accommodation such as businesses, transportation, and non-profit ser…
Writing in Multifamily Insider, author Joe Killinger starts by outlining just how expansive the law is, saying that the:
scope of the law is fairly broad and addresses many of the obstacles affecting the participation of people with disabilities within society.
Killinger says that although MF owners and “management companies may be faced with a lawsuit for non-compliance with ADA laws”, he says they’re usually preventable because they’re:
…violations which stem from the lack of proper guidelines, policies, procedures, and/or practices regarding accessibility. Implementing current policies can go a long way toward avoiding the expense associated with ADA lawsuits.
Managing Liability
It all comes down to liability says Killinger, as “owners, landlords, managers, and tenants can be jointly and severally liable in the event of non-compliance”, this makes it critical to “ensure you have safe practices in place to address any ADA issue”. Killinger notes that while:
…a landlord may not shift liability for ADA compliance to their tenants, a properly drafted lease may call for the tenant to remediate.
He adds that it’s important to “remember though, tenants cannot be held liable for violations in areas which are not under their exclusive control, such as common areas”.
Catching Problems During The Inspection Period
Killinger does point out the obvious: it’s better to look for issues like this during the inspection, saying:
Investors who purchase real estate need to take a serious look at their property during the inspection period. Acquiring an asset which does not comply can be a large expense when bringing it to code. It also puts you in a position for a potential lawsuit.
His advice if problems are detected is:
…be sure to get a bid from a licensed contractor who is adept at addressing ADA issues to bring the property to code. Also, hold additional funds in escrow or ask for a reduction in the sales price to adjust. Alternatively, an investor may want to hire a professional ADA consultant to determine if the building (due to the age of construction, use, and possibly the cost to remediate) is exempt for ADA compliance.
Get Expert Help
The last thing you want with an investment is liability. Failing to meet ADA guidelines can be a very expensive proposition. Like always, we recommend having an expert in your corner. The friendly professionals at Pacwest Commercial Real Estate are ready to advise you on any aspect of multifamily and commercial real estate.
Give us a call today at 541-912-6583!
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