Is The Landlord Responsible When A Tenant’s Property Is Stolen? | Nexus Property Management® Franchise

16 April 2024

WHAT DO YOU DO AS A RENTAL PROPERTY OWNER WHEN YOUR TENANT IS ROBBED???

As a property owner you should strive to provide your tenants with a comfortable, safe, place to live in exchange for them paying you rent that goes toward your mortgage and potential profits. But what if you don’t deliver on your end of the bargain and someone’s belongings are stolen? Are you, as the landlord, responsible for replacing those missing items?

Let’s just back up a quick second. There is no “bargain” where any property owner can guarantee that they can ward off theft. If someone’s personal property is stolen, that is indeed unfortunate, but beyond very rare occasions of neglect, this is not the landlord’s responsibility. Do you owe the tenant for their stolen items? Absolutely not! In fact, to compensate tenants for stolen items is a very slippery slope when it comes to precedent setting behavior. To simplify, if your tenant ever gets robbed, you have one action step to take: tell them to call the police, and then stay out of it.

EMPATHY IS GOOD…BUT IT’S AN EMOTION: EMOTIONS DON’T LEAD TO THE BEST DECISIONS

Most of us are going to feel terrible that something like this happened to someone we know and have a relationship with. And yes, as Nexus has mentioned in numerous articles before, relationships based on respect are essential to success. However, when it comes to rental property ownership, it is a business first. Therefore, if emotions lead to financial losses that’s a problem. There’s a way to find balance in that gray area where you can remain dedicated to your financial priorities and also show a caring side for those who have suffered misfortune. Whether you’re feeling empathy or some sense of guilt, there are certain steps to avoid, and others that will bear positive long term fruit.

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WHAT NOT TO DO:

1. START AN INVESTIGATION: As noted above, you want to tell the tenants to call the police. The police have the ability to investigate and take any appropriate steps from there. You, as the landlord, do not have that authority.

2. OFFER TO PAY FOR MISSING ITEMS: Replacing missing items or paying tenants directly is very risky in that it is precedent setting. If you decide to give the second floor tenant money for their missing TV this week, what do you say next week when the tenant on the third floor claims their laptop was stolen?

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POSITIVE PREVENTATIVE STEPS

The best way to show you care is to take preventive steps to help avoid this happening again. Commonly, landlords have added brighter, motion-sensing lights in parking lots and to apartment exteriors. Adding, or replacing exterior door locks can also be helpful. Nexus has even had some clients opt to add security camera systems. All of these actions show your tenants that their safety matters to you and that they can feel more secure going forward.

LEARN MORE: HOW BEST TO MANAGE LOCKS AND KEYS AT YOUR RENTAL PROPERTY

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RENTERS INSURANCE

To return to the idea of responsibility when something like this happens, not even a new high-tech security system can 100% prevent something bad from happening. Life is filled with unfortunate inevitabilities and for that reason the insurance industry exists. Some property owning clients require that tenants who live in their units acquire rental insurance. In these cases, those tenants would then have recourse for their personal possessions should they be stolen. In that way, and through that avenue, the tenant is best able to protect themselves from the unfortunate circumstance they may find themselves in should their possessions be stolen.

LEARN MORE: MORE ON RENTERS INSURANCE

CONCLUSIONS AND NEXT STEPS

Unfortunately, people do get robbed from time to time and the best way to limit risk and damages is to take preventative actions and be prepared. If you own property and don’t already have ample outdoor lighting, it obviously makes sense to address this before something goes wrong. As property owners, it is not our charge to keep bad things from ever happening to our tenants, but we should make a good faith effort to provide for their safety and security whenever possible.

One way to ensure you’re meeting those expectations is to partner with a professional property manager experienced in these issues. If you’re interested in learning more about Nexus’ services, contact any of our teams across Arizona, Connecticut, Massachusetts, and Rhode Island.

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Mick Lefort is the General Manager of Nexus’ New Haven County Franchise Office and the Vice President of Operations for Nexus Property Management®, a National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

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