Can Tenant sue Landlord even managed by Property Management

[Pratap Singh]

Can Tenant Sue Landlord even if property managed by Property Management in any situation,

if yes except from LLC is there any other way to save Landlord?

[Joe Splitrock]

Originally posted by @Pratap Singh:

Can Tenant Sue Landlord even if property managed by Property Management in any situation,

if yes except from LLC is there any other way to save Landlord?

Anybody can sue anyone for any reason. The question is whether the landlord could be held liable if they have a property manager. They answer is maybe. It depends if they can prove the landlords actions are at fault. Even if the property is held in an LLC, there are situations where the owner can be held liable. If owners break their LLC operating rules or do something illegal, they can be held liable.

For example, the PM is screening a tenant and wants to rent to a family. You tell the PM, "I don't want kids in my property so deny them". The PM denies the applicant and says the owner has a "no kids" policy. Even if your property is in an LLC, you can be held personally liable for breaking fair housing laws. The PM can also be held liable for participating.

Bottom line, having a PM or LLC is not protection from doing the wrong thing intentionally. However, having a PM does provide isolation from liability. If you are not the one managing the property, you have deniability when management actions are at fault. In other words have a PM provides more protection.