How a Property Manager Can Be Prepared When They Get Sued
Withholding of a tenant's security deposit is probably the number one reason a house manager can end up on the other end of a lawsuit and even in court. There are many precautions and procedures which the prudent management company or manager can implement which supports prevent this situation from occurring. Moreover, a property management training course or continuing education in the nuances of proper statutory methods can go a long way in preventing a lawsuit and subsequent dropped time, energy and even money. Finally, an owner is in charge of the acts of a property manager and could find themselves in court too if the manager has violated the law, has not properly counseled the owner or properly handled the tenant's security downpayment.
Implement Minimal Procedures to be Prepared
A prudent rental property manager has been educated to take the necessary precautions and follow the statutory guidelines for tenant's issues like the return of protection deposits. The necessary property inspections, the data collection of the condition of the home, the amount of money a manager is allowed to deduct, the statutory procedure for deductions, and the proper method of communicating all of these actions to the vacating tenant is tantamount to a successful protection against tenant lawsuits. If a property manager has done all of these points with diligence there is a very good chance that they will have the greatest preparation in the unfortunate occasion when they get sued.
Pre-Tenancy Property Inspections Help Prevent Post-Tenancy Problems
Prudent property managers walk-through the property with the new tenant while there is no furniture or perhaps obstacles in the unit. The property manager takes photos, wood logs inspection data about each and every room in the unit, information the exterior of the property including any issues that exist and has got the new tenant to sign off or agree to the problem report. This same report is used at the end of the tenancy in order to and contrast the pre and post condition position. With photos and a signed inspection report it is difficult for any tenant to claim that conditions that exist now weren't generally there when the tenancy began. Moreover, in some states notice of the pre-inspection at the end of the tenancy is given to tenants in a way that they are allowed to take advantage of the pre-inspection to repair or clean the device which would otherwise be a deduction against their security put in. This procedure, if properly conducted, actually prevents a lot of article tenancy issues as the tenant is fully aware of any kind of conditions which might result in a deposit deduction, and they are given sufficient time and opportunity to correct the issues.
Pre-Tenancy Property Inspections Assist Prepare Property Managers for Court
In the unfortunate event that the tenant disputes a property manager's security deposit deduction and also files a lawsuit the manager who has taken the time to requires photos and log inspection data will be amply well prepared for the litigation. The manager should prepare their document in chronological order, should print out each and every photograph along with date and label each condition. Importantly, each person who also witnessed any conditions at the property like the gardener, the actual painter, the cleaner should all be contacted and requested a witness statement. It is easy to get a statement via a sworn affidavit and at the same time ask these people to make themselves available to become witnesses in court. To be clear each property manager should have the next in preparation of any hearing:
1) A complete house file in chronological order including photos, invoices, in addition to paid receipts;
2) A complete history of the written marketing communications with the tenants included in the property file;
3) A list of witnesses with contact information;
4) Sworn affidavits from each see; and
5) A thorough review of the facts and circumstances encircling the issues, facts and tenant complaints by the staff members who have dealt with the tenant.
Preparation is Powerful and Usually Effective
Professional property managers who take the time, energy and effort to properly keep records of their properties and tenants will find this preparation is worth its weight in gold come going to court time. Once a tenant becomes familiar with an adequately organized opponent they may think twice about their attempts to sue. The very best defense for managers or management companies is teaching themselves in the proper procedures and record-keeping that will help them get ready for this process. If the manager has followed the law, has implemented a detailed record-keeping system, prepares and presents an flawless file to the hearing judge or court then the probability of success of defending one of these lawsuits is much higher than if they happen to have not.
An Owner May be Liable for the Acts associated with its Agent
Both statutory and common law rules of sciene state that a hirer or principal of an agent might be liable for the acts of the agent. Property management organizations who fail to follow the statutory guidelines regarding landlord renters laws may find themselves in court on occasion. If a office manager has attempted to take advantage of a tenant (not uncommon) or maybe has committed statutory violations that could lead to liabilities for your unsuspecting owner. Even though the owner would ultimately have a treatment against the property manager this would be a very unfortunate situation for the operator. The owner can file a cross-complaint against the manager, however in either case the owner gets dragged into a suit since the manager was negligent or careless. Needless to say an user or property manager doesn't want to be in this situation in the first place, therefore, it is important that the manager follow statutory guidelines and correct inspection procedures.
A Real Estate Attorney on Staff is Ideal and may Keep Owners Out of Trouble
Professional property management firms who have a real estate attorney on staff have an advantage during these circumstances. A real estate attorney has the training, expertise, and step-by-step knowledge to help prevent these situations before they get out of hand. Furthermore, in the event that these cases escalate an attorney will be able to prepare plus handle the situation much better than someone without those type abilities.
