Comprehending Your Rights
Tenants and landlords have certain legal rights and responsibilities when it comes to property management companies. Laws governing these obligations differ from state to state, so it’s important to be familiar with the relevant laws where you live. A common law regarding tenant rights is that a property manager should handle their unit in the same way that they would handle their own home or apartment. So if you feel that your property manager is not responding to certain issues or not handling matters properly, you could have grounds for legal action.
For example, under California Civil Code, landlords are generally required to repair broken appliances, heating systems and plumbing, as well as other major repairs which might affect a tenant’s safety or health . If a property management company is aware of repair issues but will not address them in a timely manner, tenants can sue the landlord for damages caused by the lack of proper maintenance.
Other common tenant rights include: Landlords also have some legal rights in this relationship. They have the right to collect rent from tenants in a timely manner, see that rent is actually paid to their agent and to collect a security deposit for their property. These rights pertain to tenants who are paying rent and complying with their side of the lease agreement; landlords have fewer rights to pursue legal action against tenants who have suffered because of the negligence of their property management company.
When it comes to security deposits, most property management companies do not have the right to keep all or a majority of the deposit if damage is only largely due to wear and tear.
Recognizing Grounds for the Lawsuit
Before deciding to take judicial action against your property management company, you should first identify if you have a case. There are a number of valid grounds on which to sue a property management company. Unfortunately, the law is impacted by several texts including state laws, local ordinances, and case law through which the courts have interpreted the laws which vary from state to state. Below are a few instances in which a property management company can be held liable by a tenant:
Negligence: One of the most commonly alleged actions against any property management company is negligence related to property upkeep. Such suits typically arise when a tenant’s personal property is damaged due to a landlord neglecting to repair a leaky roof or fix a broken window. In fact, the tenant may claim that the property management company was aware of the property damage and neglected to repair it within a reasonable amount of time. This could entitle the tenant to seek damages as well as related legal fees.
Breach of Contract: Courts have held that there exists an implied lease agreement (Contract 101) between a landlord and its tenant when a lease agreement is signed. In such cases where a breach of duty has been committed by either party, it could result in a costly lawsuit for the landlord.
Negligent Hiring: A claim may be filed against an entire property management company for simply hiring incompetent employees. Claims for negligent hiring may arise when an employee who is responsible for maintaining a property, or fulfilling a certain contractual duty commits an act of negligence. Negligent hiring is a new tort which developed in the United States.
Collecting Evidence
If you are frustrated with your property management company, it’s likely that you have talked to friends or family and even done some Internet research looking for properties where this company has managed the complex with similar results. Whether or not you find other tenants with a similar story, you will need evidence to make your case against your complex’s management company. Be diligent about taking notes. Note the dates and times of issues you have experienced and information about the unit(s), elevator(s), gym, pool, or other facilities where you have had problems. Note the names of each person who works in the office so you can identify who does what at your complex. Keep a dated journal of issues as they happen to track the experience. If you have complained to the property management staff or their vendors, note their name, the date and time, and the response you received. Note any correction that was made or any promises that were made to correct the situation. Ask your fellow tenants if they have experienced similar problems and take their complaints. Depending on the situation, you could get their permission to join together to make a larger complaint against the property management company. You can ask them to sign a witness statement for your complaint against the company or ask them to submit a complaint directly to your property owner or association board president. These tenants can also give you details so that you can corroborate their stories. Work with other tenants to make a list of common problems experienced at the property. The more specific you can be, the better, so try to narrow down the laundry list of problems to three or four specific issues that either have persisted or have been extremely bothersome. Be prepared with a list of attempted resolutions for these issues so you have detailed information to share with your attorney. Photographs are a great way to provide evidence of specific problems. If something is broken or is damaged, take a photo so there is no room for he said, she said. You can also provide a timeline of events by adding a date to the photo. If you’re having trouble with the property management company, it’s best not to make waves. It is difficult to anticipate the actions of others, but it rarely helps to be combative. If the company else makes aggressive or inaccurate claims against you in retaliation, inform your attorney. The more organized and structured you are with your information when you contact your attorney, the easier it will be for them to serve you. Come to your first consultation prepared with notes, documentation, witness statements, photos, timelines, and any other pertinent information that will assist your attorney in pursuing your case.
Seeking Legal Help
Finding legal assistance for such a case is important. You have likely spent a great deal of time, energy, and money on what you expected to be a simple process. Bringing an action against a property management company is its own separate problem; there are statutes and codes in play that you do not want to overlook. Seeking the assistance of a lawyer who specializes in property management disputes will allow you to rest assured your case is being handled properly. Specialized lawyers will have the experience necessary to handle the intricacies of your individual case.
Filing the Lawsuit
Once all of your ducks are set in a row, it comes time to officially file your lawsuit.
You file the lawsuit by preparing a document known as a complaint. In the complaint, you detail all of the needs and damage you’d like your property management company to fix. You’ll hand over one original complaint to the court clerk and will need to serve one copy each to your property management company and your real estate agent. This could be done through the mail or, in certain cases, email. The specific requirements for serving a lawsuit may vary by state, so this is where an attorney can be extremely helpful .
After serving the complaint, the property management company has 20 to 60 days (depending on the state) to respond. This could take the form of a written response to the judge or by counterclaiming, where they detail their side of the story and assert that the damage is your fault, then ask the court to award them monetary damages. If the property management company fails to respond to your complaint or they fail to respond within the given timeframe, the court may grant you what is known as default judgment—meaning they automatically agree with everything you set forth in your complaint.
Understanding the Legal Process
Once you have filed a lawsuit against your property management company, you will be required to appear in court for a scheduled hearing. Many people who file lawsuits don’t know that although they are required to file their complaint, it is not up to them whether or not the case will be accepted into court. Depending on the laws of your particular state, the local jurisdiction where a lawsuit is filed may review claims to see if the case has enough evidence to go to trial.
If the court finds that there is sufficient evidence to try the case, all parties involved may be present for a settlement conference, which could include the landlord and the tenant involved. A mediator will help to resolve the legal issue through negotiation. If this is not successful, the next step is the actual trial.
If the case goes to trial, you will be required to testify in front of a judge and jury about the problems that you have had with your property management company. After closely examining the evidence, the judge will decide the verdict of the case. If you have strong evidence to support your claim, there is a good chance that the judge or jury will side with you.
Evaluating Pros and Cons
Depending on the situation, there may be notable advantages to initiating a lawsuit against a property management company. However, you should also carefully consider the downsides, as well.
If you win your case, it may be an opportunity to collect the compensation you deserve for violations of your rights and have recourse for the mistakes that left you in a bad situation. A win may also compel the management company to correct the problem, which benefits not just you, but other tenants as well.
Unfortunately, there are many downsides to a lawsuit that you need to consider as well. If you live in a smaller, privately-owned community, the odds may not be in your favor. For example, the courts tend to care less about rights violations in privately-owned properties because the burden is on the tenant to be aware of the laws in states that allow self-help evictions. Even if you do win your case, the management company needs time to address the issues , so it’s possible that your issues could persist during this period. And when seeking a financial settlement, you should also consider the possibility that the management company may not have adequate financial resources to pay you back.
Don’t underestimate how much time and money a lawsuit costs. Even if you win, it can take years for the legal process to play out. In the meantime, it’s possible that your problems will continue and your quality of life will suffer. Moreover, the longer it takes to settle your lawsuit, the longer you’ll be faced with the problems you initially sought to resolve.
Before taking the plunge, consider some less drastic options for finding solutions to your problems. You can complain to the relevant state or local housing authority, take part in mandatory mediation, or seek help from your local fair housing group. Any of these solutions might prevent the need to initiate expensive legal actions with an uncertain outcome.