What are some of the ways to help minimize landlord liabilities?
Landlord liability can result from negligence, violation of health and safety laws, failure to repair, failure to maintain the rental premises in a safe and habitable condition, or intentional harm to others and property.
Landlord duties and responsibilities regulate property management operations. Failure to perform according to statutes for health, safety, and habitability are breaches of contract. Failure to perform to standards of care can lead to tenant claims and/or findings of liability. Any breach puts the landlord at risk.
Repair and maintenance issues are commonly a cause of action for tenant injuries. To help avoid potential problems and loss related to property maintenance, a landlord must be vigilant in inspecting his property for unsafe conditions, for hidden defects that may not be obvious to tenants or guests, and making sure all repairs are done in a timely and workmanlike manner.
Communication and notifications to tenants about property policies and practices, including ways they can better protect themselves if they encounter a dangerous situation, can help mitigate risks of harm and injury. Communication between landlord and tenants should be encouraged to allow management to be aware of activity or incidents on the property that need attention. Managers need to be particularly aware of suspicious activities or illegal activities that must be dealt with immediately to remove the threat before causing greater harm to tenants or the neighborhood.
Physical safety and security devices and property assessments help to protect tenants and reduce landlord liability. Safety and security measures incorporated into rental policies and procedures help control property management operations. A failure to maintain or to deliver security measures as promised is a breach of contract by the landlord and probable cause of liability in tenant claims of harm or loss.
Policies and practices without enforcement of such policies create potential liability for the rental property to become a site for criminal activity. Tenants must depend upon the landlord to enforce his policies fairly and in a nondiscriminatory manner. Landlords are legally responsible to take action against tenant illegal activities on their property, such as drug dealing. Without proper enforcement of the rules, tenant safety becomes compromised.
Landlords must practice safety and security measures in safeguarding tenant documents and personal information including applications, credit reports, background reports, and correspondence. Access to such tenant files should be restricted on a need to know basis with files kept securely in a locked file cabinet.
Landlords should have sufficient business insurance coverage to help protect against liability claims. Insurance coverage should be reviewed at least annually to make sure the type and amount of coverage is adequate for the current business operations.
The key is to keep vigilant on rental property activities, enforce protective policies such as tenant screening and security of personal data, and work within the neighborhood and community to protect people and property.