Skip to Content

Can a Madison Landlord be Sued for a Renter’s Negligence?

A property manager sits at a table with a couple, discussing lease terms in a casual setting.Knowing and understanding the potential legal consequences of a tenant’s negligence is a significant challenge for landlords. When your tenant signed the lease, they agreed to maintain and keep your Madison rental home in a clean and proper condition and refrain from illegal activities. However, not all tenants adhere to these terms, and problems that begin on the property can swiftly escalate into legal problems for you.

Though you are not held responsible for the illegal activities of your tenant, if you discover that your rental home is being used for unauthorized business activities, your neighbors could potentially hold you responsible. The outcome of any legal action taken against you will probably be influenced by your awareness of the issue and the steps you took to address it. Being proactive in such situations is crucial to protecting your interests.

How and When You Knew

At times renters are really good at hiding shady activities from their landlords. Nevertheless, if you do find out happening on your rental property, it is vital to address the issues immediately. In nearly all regions, you could be held liable in court if your tenant engages in dangerous or illegal activities that you were aware of.

As an example, if you knew one of your tenants was using your rental home as a daycare and one of your renters or their clients hurt someone, themselves, or damaged personal property, the court could be likely to hold you liable for any damages.

The Slippery Slope of “Should”

In a few cases, whether you “should” have known about a renter’s illicit activities may arise. As an example, if you actually know your renter is self-employed before you offer them a lease, there is some confusion regarding whether or not that implies that you should have assumed they would be conducting that business in the rental home.

Moreover, if your renter had been evicted for noisy parties in the past, you may be held accountable since you should have checked with their previous landlord about it. Certainly, if you’ve executed due diligence and didn’t discover any evidence of past problems, that will boost your chances of avoiding liability.

Addressing the Problem

Addressing any problems a renter creates when you find out about them is always a good idea. On the other hand, sometimes, a property owner has a limited ability to thoroughly fix the issue altogether. If a tenant is creating a nuisance for the neighbors but hasn’t truly broken the lease terms, you can’t be held responsible for failing to evict them.

In order to be liable, you must have the power to properly do something in connection with the issue. Naturally, the flip side is that if your lease clarifies that you don’t allow rowdy parties or business activities and you don’t take action, you might be on the hook in a lawsuit

The specific terms and language used in the lease are a really important first step toward holding your tenants accountable for any nuisance or illicit activities. Aside from that, taking immediate and appropriate action is equally crucial to keeping yourself from being sued by troubled neighbors.

Meticulously and thoroughly screening your renters is another necessary part of keeping yourself out of unwelcome legal trouble, as is accomplishing regular property evaluations. At Real Property Management Greater Madison Metro, we do all this for our Madison property owners – and more. Would you like to ascertain more? Feel free to get in touch with us online or by phone at 608-310-1290 for more valuable information.

Originally Published on February 8, 2019

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details