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Landlord-Tenant Disputes: Avoiding Renters’ Lawsuits

HI6-11-13We live in a litigation-happy world where lawsuits for grievances large and small clog the court calendars for years at a time. And one area ripe for complaints of all kinds is the landlord-tenant connection. Because investors making money from rental real estate so often become the targets of irate tenants for issues minor major and nonexistent, knowing how and why tenants most often sue can save a property investor time and money.

The wording and provisions vary from state to state and even from landlord to landlord, but in general, the requirements of a landlord/tenant agreement are pretty simple. A landlord/owner’s obligation is to keep a property in safe and habitable conditions a defined by local codes. Landlords are expected to repair anything broken or worn promptly and remove all safety hazards. For their part, tenants are expected to keep properties clam and damage free and comply with any lawful provisions in the rental agreement or lease.

But that doesn’t stop the flood of lawsuits filed every year by landlords trying to evict tenants or get back rent, and tenants filing suit for a wide range of actions (or lack thereof) on the part of owners. Common complaints landlord/investors face include:

Injuries
Landlords/owners can be sued if a resident is injured on the premises – but only if that injury can be traced to a problem for which the landlord is responsible. For example, a tenant can’t sue for falling on the sidewalk if they tripped over a visiting child’s toy, but they might have a case if they’d complained to the landlord about cracked pavement that was never fixed.

Environmental toxins
A rapidly growing area of tenant lawsuits involves allergens and toxins such as mold, lead or s=asbestos. Tenants who complain but receive no response or action from the landlord may take the complaint to court.

Pests
Bug and rodent problems that aren’t addressed to the tenants’ satisfaction are ripe for litigation too. A recent spate of suits involving bedbug infestations brought attention to the responsibilities of both landlords and tenants to keep the properties clean and pest-free.

Property Damage
Tenants may also sue I their property was damaged by something the landlord did or didn’t do. If a garage roof collapses and smashed a tenant’s new car, for example, the landlord may well be found liable The key, though, is that the landlord has to be found negligent in responding to tenant complaints about the problem.

It can be hard to press cases against slumlords — landlord/owners who fail to do any needed upkeep with an indifference to tenant welfare. In extreme cases, it’s not just tenants but also local authorities who press legal action. In general, though, landlord/investors can avoid being taken to court – and the cleaners – but irate tenants by simply doing regular upkeep and maintenance and responding professionally to tenant complaints. Staying aware of owners’ rights and obligations, as Jason Hartman advises,can keep investors out of court – and money in their pockets.  (Top image: Flickr/gorogen)

More from Heroic Investing:

Should You Use IRA Funds to Buy Investment Property?

What Makes a Bubble Grow and Burst?

The Heroic Investing Team

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