Waterbed Addendum — RPI Form 564 | firsttuesday Journal

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This form is used by a property manager or landlord as an addendum when negotiating a residential lease agreement, to establish the conditions for the use of the waterbed on the premises.

Your use of RPI Form 564

Rental and lease agreements

Residential landlords and tenants typically enter into either a periodic rental agreement or a fixed-term lease agreement.

Residential periodic tenancies take the form of month-to-month rental agreements, which run for an indefinite period of time. It automatically renews monthly, and on the same terms, until modified or terminated by notice from either the landlord or tenant. [See RPI Form 551]

On the other hand, a lease agreement creates a tenancy that continues for a fixed period — a finite length of time. At the end of the fixed period under the lease agreement, the tenant’s right of possession expires. The terms in the lease agreement set the expiration date, and no further notice is required by either the landlord or tenant to terminate the tenancy. [See RPI Form 550]

Any provisions agreed to but not included in the boilerplate provisions of a pre-printed lease or rental agreement are included in an addendum to the rental or lease agreement. The additional or conflicting provisions are entered on the addendum. The addendum is then referenced in the body of the rental or lease agreement as attached.

Two such addendums are the pet addendum and the waterbed addendum. [See RPI Form 563 and Form 564]

Pets and waterbeds

Landlords and their property managers are frequently confronted with otherwise acceptable prospective tenants who own pets or liquid-filled furniture which might pose a greater risk to the property.

However, landlords may not automatically refuse to rent to a prospective tenant whose furnishings include liquid-filled furniture, such as a waterbed. Further, they may not deny an existing tenant the use of a waterbed on the premises.

On the other hand, landlords may, as a matter of general policy, refuse to accept any prospective tenant who wants to occupy a unit with their pet, unless the tenant is disabled and uses a specially trained guide dog on the premises. [Calif. Civil Code §54.1(b)(5)]

When a landlord allows pets, they will often:

impose restrictions on the type or size of the pet; and
require the landlord’s written consent to keep the pet on the premises. [See RPI Form 551 §6.9 and Form 550 §6.9]

The landlord and tenant may sign and attach a pet addendum that states:

the type of pet and its name;
the security deposit to be charged for the pet (but limited as part of the maximum security deposit allowed); and
the tenant’s agreement to hold the landlord harmless for any damage caused by the pet. [See RPI Form 563]

A landlord who allows pets may not:

favor declawed or devocalized animals in any advertisement;
refuse to rent or negotiate for rent to a tenant because their pet has not been declawed or devocalized; or
require tenants’ pets to be declawed or devocalized as a condition of renting the property. [CC §1942.7]

Lease agreements and month-to-month rental agreements also prohibit a tenant from keeping a waterbed or other liquid-filled furnishings on the premises without the landlord’s written consent. [See RPI Form 551 §6.9 and Form 550 §6.9]

When a tenant does have a waterbed, the landlord may require the tenant to sign a waterbed addendum. [See RPI Form 564]

The waterbed addendum indicates:

the additional security deposit the tenant will be required to provide for keeping a waterbed on the premises (in addition to the maximum security deposit allowed); and
the tenant’s agreement to maintain an insurance policy to cover potential property damage when the waterbed leaks or bursts.

Security deposits

A property manager allowing a tenant to occupy a unit with a pet may charge an additional security deposit for the pet to offset any expenses or losses caused by the tenant’s pet, unless:

the rules for disabled persons and their trained dog apply; or
the security deposit ceiling is exceeded.

A standard deposit for a pet is one-third of the first month’s rent, with an extra $100 to $200 for each additional pet, limited to the ceiling amount for residential security deposits.

Thus, the total security deposit for an unfurnished residential unit, including the pet deposit, may not exceed an amount equal to two months’ rent (in addition to the first month’s rent).

For a furnished unit, the security deposit, including the pet deposit, may not exceed three months’ rent (in addition to the first month’s rent). [CC §1950.5(c)]

Also, when a pet’s behavior does not conform to the terms of the pet addendum, the tenant is in breach of the rental or lease agreement. In this instance, the landlord or property manager may serve a three-day notice to the tenant to correct the activity or vacate the premises, called a three-day notice to perform or quit. [See RPI Form 576]

When a tenant qualifies to maintain a waterbed on the premises, the landlord may increase the tenant’s security deposit up to an additional one-half month’s rent. The waterbed deposit is in addition to the maximum security deposit otherwise allowed.

The landlord may also charge a reasonable administrative fee to cover the time, effort and money expenditures necessary to process the waterbed paperwork, such as $50 or $100. [CC §1940.5(g)]

The amounts of both the additional security deposit and administrative charges are set forth in the waterbed addendum. [See RPI Form 564 §§3 and 4]

Waterbed insurance policy

The tenant may be required to provide the landlord with a waterbed insurance policy or certificate of insurance for property damage caused by the waterbed. [See RPI e-book Real Estate Property Management, Chapter 54]

The policy needs to name the landlord as an additional insured to eliminate any question over the disbursement of funds from a claim.

The waterbed insurance policy is to be accepted by the landlord when specific conditions are met, including:

the policy is issued by a company licensed in California;
the company possesses a Best Insurance Report rating of B or better; and
the policy offers coverage of no less than $100,000. [CC §1940.5(a)]

The tenant is to ensure the policy remains valid and enforceable throughout the period the waterbed is located on the premises. The landlord has the right to demand proof of insurance from the tenant at any time.

When the tenant fails to provide proof of insurance when requested, a three-day notice to perform or quit may be served on the tenant to deliver the policy, remove the furniture or vacate. [See RPI Form 576]

When a tenant’s waterbed liability policy is cancelled, expires, or is not renewed, the tenant is obligated to give the landlord a ten-day notice of cancellation or nonrenewal of the insurance policy. [CC §1940.5(a)]

The notice is automatically given to the landlord by the insurer when the landlord is an additional insured on the waterbed policy.

Analyzing the waterbed addendum

A landlord or property manager uses the Waterbed Addendum published by RPI as an addendum when negotiating a residential lease agreement. The form allows the landlord or property manager to establish the conditions for the use of the waterbed on the premises. [See RPI Form 564]

The Waterbed Addendum contains:

Facts, including:
- whether the form is an addendum to a:
  - residential lease agreement [See RPI Form 550]; or
  - residential rental agreement [See RPI Form 551];
- the date of the lease or rental agreement; and
- the address [See RPI Form 564 §1];
Landlord and tenant agreements, including:
- a description of the waterbed [See RPI Form 564 §2];
- the amount of the security deposit [See RPI Form 564 §3];
- the amount of the administrative fee [See RPI Form 564 §4];
- the tenant’s agreements, including:
  - they will maintain an insurance policy for no less than $100,000 and name the landlord as an additional insured;
  - they will install the waterbed according to manufacturer specifications and will give the landlord a 24 hour notice of any intent to install, move or remove the waterbed;
  - they will strictly abide by the maintenance and safety precautions specified in the waterbed manufacturer’s owner manual;
  - the landlord may enter the tenant’s residence on a 24 hour notice to inspect the waterbed to ensure it is being properly maintained [See RPI Form 564 §5]; and
Signatures of the landlord and tenant.