7 Landlord Liabilities That Might Surprise You

The Myndful Investor Podcast

7 Landlord Liabilities That Might Surprise You

Rental Investor Starter Kit

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Landlords can be held liable for damage or injury caused to or by tenants or by violations of the warranty of habitability, which dictates that tenants have a right to a livable state. 

Some of these things may be obvious, whereas others may catch you off guard. Read on so you’re always prepared! 

Liabilities at rental property may surprise you

1. Dogs

It’s only if the landlord already knows that a dog was dangerous and could have had the dog removed from the property that the landlord can be liable. 

The easiest way around this situation is to disallow pets, or at least dangerous pets, from your residence by explicitly banning them in the lease and including harsh consequences for violations. 

Some other approaches to take include:

  • Only allowing particular breeds of dogs that you have evaluated and approved.
  • Stipulate that dogs must be leashed when outside of the rental unit.
  • Allow for changes to pet policies at any time (preferably with 30 days’ notice).
  • Ensure that if the provisions are transgressed, or the dog is deemed a liability, the dog will be removed, or the lease will be ended. 
  • Demand renters insurance that includes liability coverage.
  • Consider emotional support and service animals, which are legally allowed in rental homes, and how to prepare for these animals.

This issue can benefit from flexibility because allowing pets is one of the tips and tricks to getting tenants to renew their lease.

Pets in rental property might be a liability

2. Criminal Activity

Landlords have been sued for failing to take measures to protect their tenants from crime. This is more likely to be the case if the landlord knew the crime or similar crimes have already happened on or near the property. 

To reduce your liability, take the following steps:

  • Follow laws that protect tenants, like giving them ample lighting and proper door and window locks. 
  • When learning of a dangerous situation, take action without haste.
  • Fix security lights ASAP.
  • If there’s suspicious activity, inform the police and your tenants using text, email, or updating your tenant portal.
  • Consider hiring security guards or setting surveillance equipment.
  • Keep nearby trees and shrubs trimmed so that they don’t provide cover for illicit activity.

Landlords have to protect their communities from the illicit activities of their residents. Landlords can be sued for public nuisance, and they can be fined or subjected to penalties for crimes such as drug dealing that occur on their properties. 

To limit the likelihood of having criminal activity on your property, the following measures can be invaluable.

  • Screen tenants carefully.
  • Do not rent to people who have been convicted of violent or dangerous crimes. Although, keep in mind that laws like Oakland’s Fair Chance Housing Ordinance prohibit criminal background checks during the tenant screening process. Make sure you follow all local ordinances.
  • Check references
  • Personal
  • Professional
  • Past landlords
  • Explicitly prohibit drug dealing and other criminal activity in the lease and evict anyone who commits an infraction.
  • Consult with police the minute you discover illegal activity. 

3. Windows and Screens

Landlords and property management companies have been found liable when children die or are hurt by falling out of windows. To protect yourself from facing a similar situation, take the following precautionary measures.

  • Tell parents before their move-ins that open windows, especially low ones, are dangerous.
  • If you say you will install a window screen, it’s your responsibility to do so.
  • If a screen you installed is damaged, replace or repair it ASAP.
Liabilities may include windows and rental proerties

4. Secondhand Smoke

Secondhand smoke is considered a violation of the implied warranty of habitability, which dictates it is the landlord's responsibility to provide livable housing. Secondhand smoke is also a nuisance if it enters a common area or tenant’s unit. 

Tenants with disabilities who have trouble breathing could sue landlords for not providing habitable accommodations under the Americans with Disabilities Act and the Fair Housing Act.

Smoke can also delay an easy rental tenant turnover because it takes time to remove lingering odors, correct discolored interiors, and get rid of any stains.

You can ban smoking around or in your property in your lease agreement. However, being able to smoke is something potential tenants may consider when deciding whether to move in or renew their lease. Instead, you can designate smoking areas where smoke won’t drift into units or common areas. 

Also, make sure smoke can’t travel via a duct system or drift from one balcony to another.

5. Bed Bugs

Landlords may be automatically liable for exterminating bed bugs and for any damages depending on the state. If it takes too long to deal with the bed bugs, the landlord could be sued for violating the warranty of habitability. 

For this reason, it is paramount to be proactive and to document everything you do, especially if your property is in an area prone to bed bugs.

  • After your tenants move out, immediately have the units certified bed bug free after an inspection by a licensed pest control company. Have the tenant inspect the certification. 
  • Include a provision that requires synthetic covers on mattresses and bedsprings.
  • Stipulate in the lease that bed bugs must be reported and that all steps recommended by the pest control company must be followed, including the disposal of any possessions.
  • Don’t risk an infestation. Contact pest control the minute you suspect anything.

6. Slips and Falls

Landlords are liable for slip and fall accidents if they fail to install appropriate lighting, remove obstacles, or provide adequate accessibility. 

The most common areas where these accidents occur include:

  • Doorways
  • Stairs
  • Ramps
  • Ladders
  • Uneven surfaces
  • Crowded areas

Landlords can be sued if:

  • Should have known because the risk was obvious.
  • They knew of the potential hazard but did nothing about it.

Were responsible for the dangerous area because they:

  • Spilled liquids or other slippery materials.
  • Didn’t repair worn or damaged areas.
  • Failed to maintain common areas like laundry rooms or backyard.

7. Harm Caused by Employees

Employees are the landlord’s responsibility, so careful screening is required. Landlords can be sued if employees harm any tenants, their guests, or their property. 

Bottom Line

The number of things a landlord can be sued for only increases the benefit of hiring skilled and experienced property managers. This way, property managers will monitor and deal with any potential liabilities, in addition to all the other duties they perform. 

And since it’s their job to do so, property managers are less likely to neglect their landlord responsibilities than an investor who’s hoping to take care of their real estate quickly because they have limited time and resources. 

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