Multifamily Minute Reader Reflections: The Legal Woes of Apartment Complexes
Multifamily Minute subscribers weigh in on how legal challenges are impacting landlords. Here's what you can do about it.
Start Your Application and Unlock the Power of Choice$5.6M offered by a Bank$1.2M offered by a Bank$2M offered by an Agency$1.4M offered by a Credit UnionClick Here to Get Quotes!Nobody likes going to court. (Well, that's probably not actually true.)
But as a landlord, getting mired in legal battles is certainly a kind of hell that you'd rather avoid. And much of the time, it may feel unwarranted (or, if you're the one doing the suing, an annoyance to have to go to the last option available).
A couple weeks ago, I asked you: Have you ever been involve in legal proceedings related to your multifamily properties?
Survey Results
Here's what you told me.
Response | Percent of respondents |
|---|---|
I've been sued | 18% |
I've had to evict tenants | 34% |
I've had to sue a tenant | 16% |
I've had to sue a contractor/service provider | 9% |
No, but I'm worried about it | 17% |
No, and I'm not worried about it | 6% |
The vast, vast majority (77%!) of respondents said they've had to deal with legal issues. And most of those who haven't are at least a bit worried about it.
No wonder, given everything that can go wrong in an apartment building — things that are preventable and much that simply isn't.
Still, there are concrete steps you can take today to reduce the chance you'll ever end up on
There's no silver bullet here, but here are a few considerations:
- Keep your properties safe. I mean, this one's obvious. Take care of your assets, keep up on your maintenance, and this will do wonders for you.
- Screen your tenants. This is often underrated, but it's a great way to weed out potential residents that may fall into arrears or otherwise be troublesome to their neighbors. Finding residents who will maintain the peace in a building is absolutely essential. There are plenty of renter screening services out there, too, if you simply don't have the time or ability.
- Review your lease documents. Don't leave anything open to potential interpretation, but be as black and white as possible. If you know your responsibilities and your tenants know theirs, that's half the battle.
- Get solid insurance. Yeah, you undoubtedly already have insurance for your property. But there's a real temptation to skimp on this end, especially as premiums skyrocket and coverage diminishes. Make sure you review your policy — if it doesn't cover the lion's share of a worst-case scenario, it's time to find a new provider (and we can help!).
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Our Previous Survey
Last time around, I asked about multifamily occupancy issues — and how you ensure you've got heads in beds. Here's what you told me.