Special offer

Criminal Activity & Landlord Liability

By
Services for Real Estate Pros with AppFolio, Inc.

Criminal Activity & Landlord Liability

When you are a landlord, there is the potential that you could be held responsible for any illegal activity that is taking place on your property when your tenants are responsible for it. When you know that some kind of illegal activity is occurring, you may be tempted to turn a blind eye if your tenants are otherwise reasonable, but you should be aware that you might be penalized in the following ways:

  • You could face fines – if it can be proven in court that you were aware of (or even suspected) that there was criminal activity of any sort occurring on your property, you could face fines. These can be substantial. Since it is your property, you should stop any illegal activities in their tracks, otherwise you are just as responsible as they are.
  • You could face criminal charges – if you have been knowingly allowing illegal activities to proceed on your property, it is even possible that you could be charged criminally.
  • You could be sued for threatening public safety – in instances where your tenants have been involved in criminal activity like drug dealing that has impacted the safety of your neighborhood, it is possible that you could be sued for threatening public safety. After all, as a landlord, you are responsible for removing individuals from your property if they have been conducting dangerous illegal activity.
  • Your property value could drop – if your property has been a site for known criminal activity, your property value could drop. In the long-term, this could become a major issue when you decide to sell your property and are unable to get what it’s worth because of its history.
  • Your property could be confiscated – in extreme circumstances where illegal activity, such as drug activity, is taking place on the property, it is possible that your property will be confiscated as part of an ongoing investigation. This is less likely when dealing with a rental property, but it is still a risk that you face, especially if a court becomes aware that you have been ignoring the signs of illegal activity.

As a landlord, you are tasked with keeping an eye on what is happening at all times. If you suspect that there is illegal activity occurring, you need to report it, or you could face consequences yourself.

Posted by

Zach Devine, Marketing
RentApp.com (A Service of AppFolio)

 AppFolio Property Manager

 Ready to love your property management software? Learn more

Raymond E. Camp
Ontario, NY

I love the one you could be sued for not removing the tenants anf you have allready tried to evict them.

Maybe a neighborhood should sue the local government for the vacant homes being used for the same type of activity.

Jul 03, 2012 04:55 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

...yet when a landlord attempts to notify the local police THAT HIS TENANT IS MAKING BOMBS, they failed to investigate OR advise the FBI or state police....landlords need to CYA

Jul 04, 2012 12:38 AM