Article examines potential liability of property managers, offers tips on how to avoid tenant lawsuits
By: Scarlett M. Rajbanshi and
Banker & Tradesman
BOSTON (June 20, 2011) – In an article published in the May 30 issue of Banker & Tradesman, Scarlett Rajbanshi and Jay Myers analyze Massachusetts law on when property managers can be liable as landlords, and also provide tips on how property managers can shield themselves from tenant lawsuits.
In certain circumstances property managers can be sued by tenants for a breach of the “implied warranty of habitability” and a breach of the “covenant of quiet enjoyment,” as well as for violating the Massachusetts consumer protection statute. They could potentially face potential damages that are generally reserved to property owners – namely, payment of the complaining tenant’s attorneys’ fees and double or treble damages.
A property manager who manages and controls premises, collects rent, and makes repairs can be considered a landlord without actually owning the premises, the authors explain. However, property managers can shield themselves by negotiating protective clauses in the property management contract, including indemnity provisions and insurance-related language, Rajbanshi and Myers write.
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