When you own property that someone else lives in, you increase your chances of personal liability should someone get hurt on your property. You are not there daily to maintain the property, nor can you control who visits the home. Keeping your property and documentation in the proper legal order is the best way to avoid getting sued by your tenants.
Instructions
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Make sure all of your legal documents are in order. Do not try to enforce illegal rules or put them in the terms of your lease. Many landlords try to demand rent be paid on the first of the month, or include unreasonable rules to the lease. Not only are illegal items not enforceable, but also give your tenants a reason (in writing) to sue you.
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Make sure the home is free of any possible hazards, up to code and has a certificate of occupancy filed with the appropriate authority. Accidents certainly happen; however, you can avoid as many as possible by making sure that your rental property is a safe and secure as possible. If someone gets injured and the reason is found to be negligence on your part, you will not be able to defend against a lawsuit.
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Deal with the tenants in a legal manner (including evictions and security deposit). Each state has rules regarding security deposit and evictions. Find out what they are and work within what is legal. Tenants who are evicted illegally, or who do not get back money that they feel they deserve can sue you.
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Address any accidents and/or repairs immediately. Should a tenant get injured in your property, address it immediately. Without obstructing any investigation, have the problem repaired promptly and contact your insurance carrier. All requested repairs must be addressed in a timely manner as well, or your tenant might have the right to legally withhold rent.
Source : ehow
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