Property managers are important parts of many landlords’ rental businesses. They take care of many important tasks such as handling repairs, collecting rent, and showing properties. However, as a representative of their business, landlords can be liable and can be sued by current or prospective tenants as a result of a manager's actions. Below is a list of potential liabilities a landlord could face as a result of a manager's actions and ways landlords can protect themselves against certain manager based actions.
A manager violated anti-discrimination laws when rejecting prospective tenants.
A manager sexually harassed a tenant.
A manager does not repair dangerous conditions which consequently leads to injury or property damage.
A manager fails to follow state rules in regards to giving back a security deposit.
A manager commits a crime against a tenant.
A manager violated a tenant’s right to privacy.
Protecting Yourself Against Manager Based Liability
Ensure you do your due diligence when hiring a manager by looking into their previous work experience, references, and resume.
Make sure your manager knows basic tenet rules including evictions and tenant selection laws.
Make sure you supervise your manager on a regular basis as well as give tenants the ability to contact you directly if there are any issues.
Do not hesitate to fire bad or inappropriate managers.
Make sure to have a landlord insurance policy that covers any illegal acts of your employees.
It is not enough to merely complete the actions listed above to protect yourself against manager based liability. You need a property management system that tracks tenant complaints and stores employees’ background checks. You need a management property software where you can easily store necessary evidence that proves you have followed all your landlord responsibilities and dealt with inappropriate managers effectively. You can never control whether your manager will act in a way that could lead to legal action against you. However, you can take necessary steps to protect yourself and show you did your due diligence when hiring, managing and potentially firing your employees.
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.