Landlord Liability for Criminal Acts and Activities

The High Cost of Crime

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The settlements paid by insurance companies on behalf of landlords for crimes like rape and assault in the U.S. averages more than $500,000. The average jury award for cases that actually go to trial is $1.2 million.

      Most state law and courts make landlords responsible for providing at least some degree of protection for their tenants from the criminal acts of employees, other tenants and outsiders.
      Landlords may also be expected to protect the neighborhood from their tenant's illegal activities, particularly drug dealing. These duties to the public may stem from building codes, local ordinances and statutes, but are most often the result of court decisions.

Landlords may be libel for crime on the property from outsiders

     There is no possible way to prevent every conceivable claim for damage against a property owner, however reasonable preventive measures are the best hope to limit liability from criminal acts and activities.
      The following are some of the precautions that may help limit the likelihood that criminal activity will occur on a rental property and reduce the risk that a property owner will be found responsible if a criminal assault or robbery does occur:

• Educate tenants, in writing, about the risks of crime in the building and the neighborhood.
• Handle tenant complaints about dangerous situations, suspicious activity or a broken security items immediately. A landlord has a higher level of legal liability should a tenant be injured by a criminal act while a security system is out of service or a lock on a window or door is broken.

Avoid tenants who deal drugs or otherwise break the law

       The most effective method for avoiding troublemaking tenants can be done with good screening procedures. In this information age we can find out almost anything about anybody's past if we are willing to take the time and spend the money. However, in most cases getting a credit report and checking with previous landlords and employers will indicate pretty clearly if further checking is warranted.

P ractical steps landlords can take to limit their liability and financial exposure from any lawsuits that are filed include the following :

• Keep the results of screening and background checks that show the tenant's previous rental and job history.
• Be aware of suspicious activity, such as heavy traffic in and out of the rental premises and question the tenant in writing about it.

Landlord's liability from tenants who deal drugs on the property

      Landlords are open to all kinds of practical and legal problems from tenants who deal drugs on the property. When communities become frustrated with the inability of government to control drugs, they naturally look for any scape goat available, particularly if they can find someone to blame with deep pockets.

• Authorities have the power to pursue criminal penalties against any landlord who knowingly allows drug dealing on rental property .
• The presence of drugs could result in government confiscation of the rental property.

The above topics are discussed in more depth on
our members' Landlord Liability for Criminal Acts page.

Non-Members' Homepage