Landlords: The 6 Best Ways to Minimize Your Chances of a Lawsuit

Landlords: The 6 Best Ways to Minimize Your Chances of a Lawsuit

3 min read
Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments.

Experience
Brandon began buying rental properties and flipping houses at the age of 21. He started with a single family home, where he rented out the bedrooms, but quickly moved on to a duplex, where he lived in half and rented out the other half.

From there, Brandon began buying both single family and multifamily rental properties, as well as fix and flipping single family homes in Washington state. Later, he expanded to larger apartments and mobile home parks across the country.

Today, Brandon is the managing member at Open Door Capital, where he raises money to purchase and turn around large mobile home parks and apartment complexes. He owns nearly 300 units across four states.

In addition to real estate investing experience, Brandon is also a best-selling author, having published four full-length non-fiction books, two e-books, and two personal development daily success journals. He has sold more than 400,000 books worldwide. His top-selling title, The Book on Rental Property Investing, is consistently ranked in the top 50 of all business books in the world on Amazon.com, having also garnered nearly 700 five-star reviews on the Amazon platform.

In addition to books, Brandon also publishes regular audio and video content that reaches millions each year. His videos on YouTube have been watched cumulatively more than 10,000,000 times, and the podcast he hosts weekly, the BiggerPockets Podcast, is the top-ranked real estate podcast in the world, with more than 75,000,000 downloads over 350 unique episodes. The show also has over 10,000 five-star reviews in iTunes and is consistently in the top 10 of all business podcasts on iTunes.

A life-long adventurer, Brandon (along with Heather and daughter Rosie and son Wilder) spends his time surfing, snorkeling, hiking, and swimming in the ocean near his home in Maui, Hawaii.

Press
Brandon’s writing has been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media.

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YouTube
Instagram @beardybrandon
Open Door Capital

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(The following is an excerpt from the new book from BiggerPockets, The Book on Managing Rental Properties. If you are looking to earn more and have less stress with your rentals, pick up a copy today!)

In our litigious age, it’s impossible to keep yourself 100 percent free from a lawsuit.

As a landlord, the chance of getting sued actually increases. However, there are some actions you can take to decrease your chance of being hit with a lawsuit.

This post is not designed to scare you, but lawsuits are a real thing, hence the need for great insurance on your property. But besides insurance, let’s talk about six of the easiest ways to keep yourself free from lawsuits ever happening.

Webinar Jpeg(Hey – you – before we get to the post, I wanted to invite you to this week’s webinar! This week we’ll be talking about one of my favorite topics: multifamily properties, and how you can use them to make $1,000,000 over the next decade! I hope to see you there! Click here to register now! Okay… back to the post!)

1. Provide Housing That is Habitable

As a landlord, it is your legal responsibility to provide housing that meets a certain level of cleanliness. If you rent properties that don’t meet basic standards, your risk of getting sued increases greatly. So don’t be a slumlord! Fix up your properties and make sure they are in good, livable condition for the tenant. Be sure to investigate and comply with federal, state, and local housing codes to ensure your property is in good enough condition to rent.

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Related: 7 Tips to Keep Landlords Free From Costly Tenant Lawsuits

2. Provide Housing That is Reasonably Safe

If you fail to provide a reasonable level of security for your tenants, you could be sued. For example, if a tenant calls with complaints about their door lock not working, and before you can fix the problem someone breaks in and attacks the tenant, you could face a lawsuit. Therefore, make sure safety-related concerns are addressed promptly. And, of course, don’t rent to people who might hurt other people.

3. Get Repairs Taken Care of Quickly

If a tenant has an issue that must be fixed and you refuse to, you are opening yourself up to a lawsuit or at minimum the tenant legally being able to withhold the rent or using their own money to pay for the repairs. So don’t let things get to this point. Hire qualified people to repair your properties immediately.

4. Maintain the Property Well

One of the primary causes of lawsuits in the real estate space is due to injury sustained on the property by a tenant or a guest. Therefore, it is imperative that you continually make sure there are no hazards on the property that could harm a tenant, such as defective or missing handrails, slippery staircases, or dangerous pets.

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5. Disclose and Handle Environmental Concerns

Landlords can also be sued over environmental concerns, such as asbestos, lead-based paint, mold, bedbugs, or other local environmental issues. The key to avoiding lawsuits is disclosure and fast action. If you know of a problem, disclose it. For example, if you know asbestos or lead-based paint was used in the property, let the tenants know. If mold, bedbugs, or other similar issues creep up, deal with them swiftly.

Related: The Top 7 Laws Every Landlord Needs to Study

6. Follow the Lease

When you sign a lease with a tenant, you are signing a contract that is binding for BOTH parties. In other words, you have some duties and responsibilities as well, and if you break your end of the contract, you could get sued. Therefore, understand the lease that you are signing and stick to the contract.

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No one becomes a landlord to get sued, but by putting on the landlord hat, you open yourself up to the possibility in a greater way than the rest of the population. However, by following the tips outlined in this post, you’ll hopefully avoid the stress and financial heartache that can come from a lawsuit.

Are there any other tips you could add to help others avoid lawsuits?

Leave your best suggestions below!