7 surprising owner liabilities

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

Some of these things may be obvious, whereas others may catch owners off guard.

1. Dogs

It’s only if the owner already knows that a dog was dangerous and could have had the dog removed from the property that the owner 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:

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

2. Criminal activity

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

To reduce your liability, take the following steps:

Owners have to protect their communities from the illicit activities of their residents. Owners 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.

3. Windows and screens

Owners 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.

4. Secondhand smoke

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

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

Smoke can also delay an easy rental resident 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 residenets 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

Owners 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 owner 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.

6. Slips and falls

Owners 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:

Owners can be sued if:

Owners are responsible for the dangerous area because they:

7. Harm caused by employees

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

Bottom line

The number of things an owner 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 owner responsibilities than an investor who’s hoping to take care of their real estate quickly because they have limited time and resources.