Understanding the potential legal consequences of a tenant’s negligence is a significant challenge for landlords. When your tenant signed the lease, they agreed to maintain your Golden Valley rental home in a clean and proper condition and refrain from illegal activities. However, not all tenants adhere to these terms, and problems that begin on the property can speedily escalate into legal problems for you.
While you are not held responsible for the illegal activities of your tenant, if you know that your rental home is being used for unauthorized business activities, your neighbors could potentially hold you liable. The outcome of any legal action taken against you will possibly be dependent on your awareness of the issue and the steps you took to address it. Being proactive in such situations is critical to protecting your interests.
How and When You Knew
Occasionally, renters are great at hiding shady activities from their landlords. Despite that, if you do detect happening on your rental property, it is significant to address the issues immediately. In most regions, you could be held liable in court if your tenant engages in dangerous or illegal activities that you were aware of.
For instance, if you knew one of your tenants was using your rental home as a daycare and one of your renters or their clients hurt someone, themselves, or damaged personal property, the court could be likely to hold you liable for any damages.
The Slippery Slope of “Should”
In some instances, whether you “should” have known about a renter’s illicit activities may arise. For instance, if you grasp your renter is self-employed before you offer them a lease, there is some confusion about whether or not that specifies that you should have assumed they would be conducting that business in the rental home.
In addition, if your renter had been evicted for tacky and loud parties in the past, you may be held accountable since you should have checked with their previous landlord about it. Needless to say, if you’ve accomplished due diligence and didn’t discover any evidence of past problems, that will enhance your chances of avoiding liability.
Addressing the Problem
Addressing any problems a renter creates if you know about them is always a good idea. Though sometimes, a property owner has a limited ability to totally fix the issue altogether. If a tenant is creating a nuisance for the neighbors but hasn’t really broken the lease terms, you can’t be held responsible for failing to evict them.
In order to be liable, you must have the power to surely do something related to the issue. However, the flip side is that if your lease clarifies that you don’t allow raucous parties or business activities and you don’t take action, you might be on the hook in a lawsuit.
The specific terms and language used in the lease are a major first step toward holding your tenants accountable for any nuisance or illicit activities. At the same time, taking immediate and appropriate action is similarly relevant to keeping yourself from being sued by distressed neighbors.
Carefully and thouroughly screening your renters is another necessary part of keeping yourself out of unwelcome legal trouble, as is completing regular property evaluations. At Real Property Management Northern Arizona, we do all this for our Golden Valley property owners – and more. Would you like to know more? Don’t hesitate to get in touch with us online or by phone at 928-757-7368 for more information.
Originally Published on February 8, 2019
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
