Avoiding Legal Pitfalls With Guest and Attorney, Kelly McCan

This article is transcribed from Episode 22  of The Accidental Landlord. You can listen to the

full episode, here.

TODAY WE HAVE AN ATTORNEY WITH SOME RELEVANT EXPERTISE. KELLY MCCAN IS AN ATTORNEY WITH THE BURNSIDE LAW FIRM. WELCOME TO THE SHOW, KELLY! 

It’s a pleasure to be here! Hopefully, I can share some tips and give some value to your listeners. 

ABSOLUTELY! COULD YOU TELL OUR LISTENERS WHAT YOUR BACKGROUND IS?

I am a litigation lawyer, which means that I represent tenants who sue landlords. Before I did that, I worked for a real estate private equity firm. I am an attorney and I have a Masters in Real Estate Finance, BA in Finance, and my Law Degree. I specialized in Real Estate and Construction Law.  I’ve worked in real estate my entire life, since my parents had some rental properties. So, from a young age I was exposed to this sector. 

IF YOU ARE REPRESENTING TENANTS, YOU ARE THE PERFECT PERSON TO BE TALKING TO. THE BIGGEST REASON THAT LANDLORDS DECIDE TO MANAGE THEIR PROPERTY ON THEIR OWN IS THE COST. AS A LAWYER WHAT IS THE MOST COMMON MISTAKE YOU SEE THAT LANDLORDS MAKE?

I think you brought some great points, especially for new landlords who just inherited a property or are looking to invest in a property. The main problem is when they don’t actually know what they are doing, and they want to manage the property by themselves. Generally what I would do, is I would recommend everyone at least in the beginning, hire a property management company.

The reason for this is that they are experts on the market, and they would help you learn everything you need to know when managing a property. Even if you are trying to save some pennies, hire a property management company at least for the first year. 

WHEN YOU ARE INVOLVE IN LITIGATION WITH A LANDLORD, WHAT ARE THE MAIN TOPICS YOU USUALLY CONTEST?

I tend to represent tenants, on a contingency basis, meaning they don’t pay unless we win. Usually what we look for in a case, is a defendant with resources. That means an insurance company who is backed up by a bigger company. Then we look for really great backs, meaning that we look for a landlord who has totally backed cornes, or is not repairing the property anymore.

We see a lot of mold issues. Horrible thing is that it can cause a lot of health issues. These types of problems can actually build us a pretty strong case. As a landlord one thing that you can do to stay away from an acquaintance attorney is to know what you are doing. If you don’t know what you are doing, hire someone who does. Even if you know what you are doing, you need to buy landlord insurance, because everyone makes mistakes and these types of mistakes come along with the biggest lawsuits. 

WHO DO YOU FIND WORKING ON THE OTHER SIDE OF YOUR CASES REGULARLY? WHAT DOES THE DEFENDANT USUALLY LOOK LIKE?

I would say that it is the defendant that usually messes up. Most of the time, it is someone who is self-managing. In our cases we tend to look for tenants with resources via a property management company or something bigger. We don’t tend to go after individuals who are managing by themselves. 

WHERE DO PEOPLE GENERALLY FALL SHORT, ON WHAT THEY SUPPOSE TO DO?

In the Pacific Northwest, there are so many laws in regards to protecting tenants. These laws usually favor tenants. With this said, there's a lot of ways you can mess up. The reality of the situation is that even if it's a tiny little thing, a lawyer can turn that tiny little thing into a request for thirty grand pretty easily. And, when you take that tiny little request for thirty grand, honestly it just makes sense to settle. 

To listen to the full episode click the link.