In today’s legal tip, let’s talk about how housing providers can avoid being sued by their tenants. 

We have often said that representing tenants can be more lucrative than being a personal injury attorney. With tenant lawsuits proliferating throughout the Bay Area and beyond, here are some actional insights to avoid a costly lawsuit, and this begins before the inception of the tenancy.

 

Does a rental applicant have a history of litigation, either suing other parties or getting sued themselves? 

The greatest predictor of a tenant’s behavior is their past behavior. If someone applying for a rental unit has sued four of their past landlords, would you rent to them?

Fortunately, a rigorous screening process can weed out those renters who are prone to sue someone they do business with, or are embroiled in some sort of litigation. Using a plaintiff/defendant search, housing providers can identify litigious rental applicants and avoid them like the plague.

 

What is the financial health and credit history of the applicant? 

Generally speaking, the type of tenants bringing lawsuits against landlords lack the wherewithal and they are looking for a free ride. Contrast this with a tenant with a long history of stable income and creditworthiness. Those individuals who demonstrate excellence in their lives typically don’t file lawsuits against their landlords.

Keep in mind that EVERY ADULT who is seeking to move into the rental unit should fill out an application, and each adult should be vetted equally.

Also be aware of false information that can shared in the rental application, if not downright identity theft. One tip is to match up the applicant’s cell phone to records to ensure they are who they say they are.

 

Address all repairs without delay. 

A common reason for a lawsuit to be commenced is claims that the unit is not in habitable condition. Whenever there is a problem identified, housing providers should respond without waiting. If there is a plumbing issue, for example, the landlord should call a plumbing professional the same day, not next week.

If the tenant claims there is a mold infestation, get a mold test to rule out mold; this report can be documented if the tenant later sues alleging the unit is not habitable. The quintessential point is to proactively respond to tenant requests, even if they are unreasonable.

 

Document all tenant correspondence. 

In the event that a tenant sues their landlord, we want a paper trail to show that the defendant was responsive to the tenant’s requests to fix a problem. For example, the tenant says that their garbage disposal is broken and later fixed. A kind note can be documented.

“Mr. Tenant, thank you for bringing to my attention that the garbage disposal was not functioning properly. I was in receipt of your concerns on Tuesday, August 13th and my contractor at XYZ Company was dispatched on Thursday the 15th to fix a faulty hose. Should you have any other further concerns, please don’t hesitate to reach out.”

Something like that. 

If the request is unreasonable, document that, as well. Take, for instance, a tenant who requests new carpeting but the landlord finds that there is no tearing of the carpet, the tenant can kindly advise the tenant that the request was received and that there is no defect to the carpet and the request is declined. Which brings up the larger point.

 

Housing providers do not have to capitulate to unreasonable requests for repairs or improvements. We need only acknowledge the request and document the reason why the tenant cannot be accommodated. 

 

Requiring that repair requests be made in writing. 

If the tenant decides to sue, the narrative we want to build is that the litigant had every opportunity to make their landlord aware of an issue but failed to do so. How can housing problems fix a problem that goes unreported? They can’t.

In an era when housing providers are demonized and painted as slumlords in the press, we want to show that there was an “open door” policy to address concerns.

As a cautionary note, landlords still need to respond to problems even if the request is not made in writing. The landlord’s obligation to maintain the premises in habitable condition is sacrosanct.

 

Housing providers should review their insurance policies. 

We understand that proper insurance is hard to come by nowadays with an exodus of companies leaving California. We’d like landlords to look through their policies with a fine-tooth comb. We want the best coverage and if it’s more expensive to obtain that coverage that best protects the rental housing industry, it is the cost of doing business. Don’t be a penny wise and a pound foolish.

 

Requiring renters insurance

Although based on decisions in an appellate court, tenants cannot be evicted for failure to have renters insurance, it can still be required in the lease to cauterize risk. For example, a pipe breaks and the tenant sues their landlord for water damage that destroys their personal property.