Renting out your property management business? Protect yourself from litigious tenants

Even though you are a leader in the rental property management industry, you still have to deal with one of the biggest challenges that any business owner faces: litigious tenants. You are responsible for maintaining the property, communicating with tenants and bringing in new clients. This means that you have a large part of the responsibility to avoid litigation. How can you reduce the time and cost of litigation?

Do Your Due Diligence

According to No Lo “arguments about security deposit refunds make excellent small claims cases: There’s a dispute over whether the tenant has damaged the property, made it a mess or owes money, and a certain amount of money is at stake.” As a property manager, you want to hire tenants who treat your rental properties like their own and will communicate any issues or concerns. Do your due diligence and set your business up for a successful future by implementing a tenant selection process, which includes credit and reference checks.

Establish clear rules

Do you deliver on your promises? Tenants and property managers are also at odds over the perception that the manager has failed to deliver on the promises made in the rental advertisements or during the conversations about the property. Be clear when you are establishing a relationship. Set up a maintenance schedule and only make promises you can keep.

Maintain Your Vehicle

You need to maintain and repair your property to prevent injuries and damage. According to SFGate Homeguides “negligence suits occur when the person who is suing, the plaintiff, suffers injury because the negligent defendant failed to fulfill a legal obligation or exercise’reasonable’ care.” When tenants are injured financially or physically, maintenance becomes a legal matter. Use a maintenance tracking app to track your property’s maintenance and to make sure that it is safe and secure.

Maintain documents and records

How do you handle concerns from owners or tenants about your property? You should document any tenant complaints so you can have a record of the discussion. This will give you information on the problem, your response and timeline. Look for software that includes templates to document maintenance. Visual evidence of repairs and changes can be very powerful. Use your Property Management Software for documentation and storage of photos and videos to demonstrate your progress on addressing maintenance and repair concerns.