Common Lawsuits Against Community Owners and How to Avoid Them

Discrimination Lawsuits

Community owners must comply with the Fair Housing Act, which prohibits discrimination based on race, color, religion, national origin, sex, familial status, and disability. To avoid discrimination lawsuits, community owners should have a clear and consistent screening process for applicants and ensure that all residents are treated equally. To protect yourself from these lawsuits, you also should make sure your advertising is in compliance with these laws, as well as, properly training your employees. While you might not intentionally discriminate against certain groups or people, it is important to ensure that you have appropriate insurance coverage in place, including Tenant Discrimination or Employment Practices Liability Insurance.

Negligence Lawsuits

Another common lawsuit is related to negligence. Community owners have a duty to maintain safe and habitable living conditions for their residents. Negligence lawsuits may arise if a resident is injured due to unsafe conditions, such as a poorly maintained road or a malfunctioning electrical system. To avoid negligence lawsuits, community owners should regularly inspect and maintain their properties and promptly address any safety issues. This also includes having proper safety signage in common areas, such as pools and other amenities.

Breach of Contract Lawsuits

These lawsuits may arise if a community owner fails to fulfill their obligations under a lease or rental agreement, such as providing essential services or making necessary repairs. To avoid breach of contract lawsuits, community owners should clearly outline their responsibilities in the lease or rental agreements and ensure that they fulfill their obligations in a timely manner.