Can a Landlord Be Held Liable for Criminal Activities

A landlord’s duty to provide a safe and habitable space is not limited to only the physical condition of the property. Landlords must take reasonable steps to monitor and control criminal activity on their properties, such as by installing security cameras or hiring a private security firm. If landlords fail in this responsibility, they may be held liable for criminal acts that occur on their property. 

This blog post discusses when the landlord can be held liable and the five  ways landlords can protect themselves from liability resulting from criminal activity:

  1. Know and comply with your state and local laws
  2. Use adequate security measures
  3. Institute  good management practices
  4. Screen tenants well
  5. Educate and disclose any problems 

Know and Comply with Your Local and State Laws

Each state and county has different security laws. You can call your local housing agency to find out the specific rules and requirements for your city and county and check your state property code. 

Even though many of those laws seems common sense you will be surprised about some of the requirements. For example, Texas requires keyless bolts and peepholes on the exterior doors. Failure to install those security devices can make you liable. 

Make sure you know what the security requirements are and comply with them.

Use Adequate Security Measures

If your local and state laws don’t have any security laws, you still need to provide “clean and safe” property for your tenants.

Landlords are not responsible for everything that happens on their property but they are responsible for “reasonably foreseeable” accidents and crime.

This starts with knowing the crime stats for the neighborhood where your rental is located. Use some of the online crime maps. If the area shows multiple burglaries and assaults, then it’s reasonable to assume that it may happen again. The landlord has a duty to secure the property and educate the tenants on proper protection.

Adequate security measures differ from one neighborhood to another. In neighborhoods where there are many criminal activities, landlords may have to do a lot more to protect their tenants.

Here are some common measures landlords can take to provide safety and avoid liabilities:

  • Install safety devices: locks, keyless bolts, window latches, sliding door pin locks, peepholes, kickplates on exterior doors, security alarms, and window bars (where necessary)
  • Don’t promise security features that are not going to be installed or maintained.
  • Provide bright exterior and interior lighting. 
  • Maintain the landscaping – minimize hiding places.

Institute  Good Management Practices

Prevent Identity Theft 

Keep your tenant’s private information secured and locked. If you use property management software make sure it’s secure and the sensitive information can be accessed only by trusted employees.

Secure All Keys

Property keys should be kept in a locked safe and the keys should be labeled by code and not by the street name and address.

Educate Tenants

Before a tenant moves in, a letter should be included with the moving packet with tips on how to keep themselves out of harm’s way.

Inspect the Property 

Property inspections are necessary not only to discover potential maintenance issues but also to uncover illegal and criminal activities

Establish Procedures for Submitting Complaints

It’s important for landlords to find out about a potentially dangerous situation or ongoing crime on the property. This can be facilitated by making it easy for the tenant to submit reports. If you are using property management software, tenants can submit security concerns the same way they submit maintenance requests. The added benefit is that everything is in writing, including the landlord’s response to the situation.

Improving the Landlord and Property Manager’s Safety

  • Deposit checks and money orders daily
  • Don’t accept cash
  • Carry a portable alarm   

Screen Tenants Well

Although background checks on tenants are not always reliable, this should be part of your screening process. SmartMove reports that 1 in 5 of all tenants screened has a criminal hit on their report.

A background check will show if the applicant has a felony conviction, listing in a sex offender registry, and it will confirm the information the tenant has given on their application.

Educate  

If your property is located in an area with high crime activity, it’s best to inform the tenants of the measures you are taking to make them safe but also remind them of their responsibility and give them some tips. Include the Crime-Free Addendum with your lease. 

How do You Protect Tenants From Each Other

Your duty as a landlord is to keep the peace and offer a safe rental. This duty is limited to what a “reasonable person” would do. If you know one tenant is threatening another, then your duty as a landlord will be to warn the offending tenant, possibly reporting them to the police and finally evicting them for breaking the term of the lease. Sometimes just letting them off the lease without penalties works best.

Drug Dealing Tenants and Meth Labs

Landlords can be liable if they don’t report those illegal activities to the police. The penalties are huge and in some rare cases, the property can be seized by the government.

The best way to prevent drug use and dealing on your property is by good tenant screening, including a Crime-Free Addendum in your lease, frequent inspections, extra security, and working with the police.

If you see signs on your rental property of a Meth Lab, call the police, stay out and call your insurance. 

You can recognize a Meth Lab by the smell of urine and ammonia, a lot of glass containers, and coffee filters with a white substance. In the Resources below you can find a brochure from the Justice Department about Meth Labs. Youtube also has a few videos of what a Meth Lab looks like.

Protecting Tenants from Employees and Vendors

Although rare, there have been cases when a vendor hired by a property management company attacks a tenant. This is easily prevented by proper screening and hiring only licensed vendors. We prefer hiring small companies because we know exactly who is doing the repairs.

The same applies to employees hired by the landlord or property manager, don’t skip background checks no matter how urgently you need their help.

Resources:

Texas Property Code – PROP § 92.153. Security Devices Required Without Necessity of Tenant Request

Methamphetamine Laboratory Identification and Hazards Fast Facts

LexisNexis Community Crime Maps

About the author

Jana Christo is a business owner, real estate investor, and property manager. She has 16 years of experience in most areas of real estate.
During the last recession, she was also the managing partner for a company that bought and rehabbed properties from the court foreclosure auctions. Today, she manages her own portfolio of rental properties and shares her experience on Rentce.com.