Are lawsuits (small claim) so rampant in this industry that nearly half of all the segments on shows like “Judge Judy” seem to involve tenants and landlords? I hate tv but these shows are on all day where I work. I can’t help but notice.
My observation is that there are many Mom & Pop LLs that are boneheads and make dumb decisions with rentals. If you screen your tenants properly and treat them like humans, it won’t eliminate lawsuits - but it will help. Have good business practices - use a well formulated written lease, make sure the tenants know all the stipulations, fix necessary items in a timely manner, provide safety equipment in your units.
YES! Lawsuits are a big part of the any business and especially the rental property business. However, it’s nottypically Judge Judy style lawsuits where the tenant is suing the landlord, unless as Justin says you’re an amateur mom-and-pop landlord who is incompetent. Most of my legal proceedings are evictions and the occasional lawsuit I bring against a tenant. I’ve been in business for 6 years and have been sued 3 times by tenants - all were frivilous and I won them all. I currently have 10 lawsuits against me for water bills that were unpaid by the tenants. I am NOT paying the tenant’s unpaid water bill and I am fighting these lawsuits as well as suing the city for damages.
Are lawsuits a big part of the rental business? Yes! If you have a significant portfolio, you will be spending time in court!
Mike
When you are in court your case may not be Judge Judy but some of the other cases you hear while you are waiting sure are entertaining.
LOL… I was sued once… and funny thing was, I told them in advance that I had the proof what they were claiming was false… they still tried… I think they were hoping I wouldn’t show and they would get a judgement… from what I hear, this a strategy alot of people use…
Didn’t happen… I did show, file in hand, and you should have seen her face turn white when I walked in, smiled and looked right at her…
As the role was called, her head just hung there… Judge was in a no BS mood that day, and you could literally see her start to sweat it (she was heavy-set so that may have contributed to it, it was a bit warm in there)… Then she went out in the hall as our case got closer…
Next thing I know I am called out there, and she’s almost in tears saying “I don’t feel good, can we just forget about this?”
I smiled, said fine, we signed some papers, my costs were covered and I was out of there start to finish in under an hour…
Now, this was for a small project (around $500), but she was trying to sue me for over $1800!.. If I hadn’t showed up and called her on it, I would have had a judgement for $1800…
I don’t know how you do it so often Propertymanager…