Can a law-abiding citizen end
up financially responsible for the criminal acts of a total
stranger?
Yes -- especially if it's a landlord who owns rental property
where an assault or other crime occurred in the past. Rental
property owners are being sued with increasing frequency by
tenants injured by criminals, with settlements and jury awards
typically ranging from $100,000 to $1 million.
What are the landlord's responsibilities for tenant safety
and security?
Landlords in most states now have at least some degree of
legal responsibility to protect their tenants from would-be
assailants and thieves and from the criminal acts of fellow
tenants. Landlords must also protect the neighborhood from
their tenants' illegal activities, such as drug dealing. These
legal duties stem from building codes, ordinances, statutes
and, most frequently, court decisions.
How can a landlord limit responsibility for crime committed
by strangers on the rental property?
Effective preventive measures are the best response to possible
liabilities from criminal acts and activities. The following
steps will not only limit the likelihood of crime, but also
reduce the risk that the property owner will be found responsible
if a criminal assault or robbery does occur. A landlord should:
Meet or exceed all state and local security laws that apply
to the rental property, such as requirements for deadbolt
locks on doors, good lighting and window locks.
Realistically assess the crime situation in and around the
rental property and neighborhood and design a security system
that provides reasonable protection for the tenants -- both
in individual rental units and common areas such as parking
garages and elevators. Local police departments, the landlord's
insurance company and private security professionals can all
provide useful advice on security measures. If additional
security requires a rent hike, the landlord should discuss
the situation with his or her tenants. Many tenants will pay
more for a safer place to live.
Educate tenants about crime problems in the neighborhood,
and describe the security measures provided and their limitations.
Maintain the rental property and conduct regular inspections
to spot and fix any security problems, such as broken locks
or burned out exterior flood lights. Asking tenants for their
suggestions as part of an ongoing repair and maintenance system
is also a good idea.
Handle tenant complaints about dangerous situations, suspicious
activities or broken security items immediately. Failing to
do this may saddle a landlord with a higher level of legal
liability should a tenant be injured by a criminal act after
a relevant complaint is made.
The Costs of Crime
The money a landlord spends today on effective crime-prevention
measures will pale in comparison to the costs that may result
from crime on the premises. The average settlement paid by
landlords' insurance companies for horrific crimes such as
rape and assault is $600,000, and the average jury award (when
cases go to trial) is $1.2 million.
What kind of legal trouble do landlords face from tenants
who deal drugs on the property?
Drug-dealing tenants can cause landlords all kinds of practical
and legal problems:
It will be difficult to find and keep good tenants and the
value of the rental property will plummet.
Anyone who is injured or annoyed by drug dealers -- be it
other tenants or people in the neighborhood -- may sue the
landlord on the grounds that the property is a public nuisance
that seriously threatens public safety or morals.
Local, state or federal authorities may levy stiff fines against
the landlord for allowing the illegal activity to continue.
Law enforcement authorities may seek criminal penalties against
the landlord for knowingly allowing drug dealing on the rental
property.
In extreme cases, the presence of drug dealers may result
in the government confiscating the rental property.
How can a property owner avoid legal problems from tenants
who deal drugs or otherwise break the law?
There are several practical steps landlords can take to avoid
trouble from tenants and limit their exposure to any lawsuits
that are filed:
Screen tenants carefully and choose tenants who are likely
to be law-abiding and peaceful citizens. Weed out violent
or dangerous individuals to the extent allowable under privacy
and anti-discrimination laws that may limit questions about
a tenant's past criminal activity, drug use or mental illness.
Don't accept cash rental payments.
Do not tolerate tenants' disruptive behavior. Include an explicit
provision in the lease or rental agreement prohibiting drug
dealing and other illegal activity and promptly evict tenants
who violate the clause.
Be aware of suspicious activity, such as heavy traffic in
and out of the rental premises.
Respond to tenant and neighbor complaints about drug dealing
on the rental property. Get advice from police immediately
upon learning of a problem.
Consult with security experts to do everything reasonable
to discover and prevent illegal activity on the rental property.
Protecting Tenants from the Manager
Rental property owners should be particularly careful hiring
a property manager -- the person who interacts with all tenants
and has access to master keys. Landlords should scrupulously
check a manager's background to the fullest extent allowed
by law, and closely supervise his or her job performance.
A tenant who gets hurt or has property stolen or damaged by
a manager could sue the property owner for failing to screen
the manager properly. If tenants complain about illegal acts
by a manager, landlords should pay attention. Finally, property
owners should make sure their insurance covers illegal acts
of their employees. >
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