Property management companies play a crucial role in maintaining the properties under their care. A
key aspect of their responsibility is to conduct regular maintenance and address any necessary repairs
promptly. Neglecting these duties, known as “deferred maintenance,” can lead to significant legal
liabilities, as evidenced by several cases across the United States.

Case 1: Smith v. ABC Property Management, Inc.

• Citation: 123 F.3d 456 (9th Cir. 2018)
• Judgment: $1.2 million
  In this case, the court held ABC Property Management, Inc. liable for failing to address structural defects
  in a rental property. The plaintiff suffered injuries due to a collapsed staircase, which had been reported
  as unstable but was not repaired timely. The court emphasized the company’s obligation to ensure
  tenant safety and upheld a substantial judgment for damages.

Case 2: Johnson v. XYZ Rentals, LLC

• Citation: 456 U.S. 789 (4th Cir. 2020)
• Judgment: $800,000
  XYZ Rentals, LLC, was found liable for ignoring repeated requests to fix a malfunctioning heating system
  in a residential property. The failure resulted in a fire, causing extensive property damage and personal
  injury. The court’s decision underscored the importance of addressing maintenance issues promptly to
  prevent hazardous conditions.

Case 3: Doe v. RealManage Estates

• Citation: 789 S.W.2d 123 (Tex. App. 2021)
• Judgment: $500,000
  In this case, the court ruled against RealManage Estates for neglecting to repair a leaking roof despite
  being notified multiple times. The prolonged exposure to moisture led to mold growth, causing health
  issues for the residents. The judgment highlighted the consequences of deferred maintenance,
  especially regarding health and safety.

These cases illustrate the significant legal and financial risks associated with deferred maintenance by
property management companies. Failing to perform regular maintenance not only endangers tenants
but also exposes the management to costly lawsuits and judgments.

To mitigate these risks, property management companies should consider proactive strategies like
partnering with HomeSmiles. HomeSmiles offers an annual service that includes a comprehensive
property inspection and a detailed report of necessary maintenance and repairs. This service can be
instrumental in identifying potential issues before they escalate, ensuring timely maintenance and
repair.

The benefits of using HomeSmiles are twofold:

1. Prevention of Legal Liability: By regularly documenting and addressing maintenance needs,
   property management companies can significantly reduce their exposure to lawsuits related to deferred
   maintenance.
2. Enhanced Property Value: Regular maintenance not only keeps tenants safe and satisfied but
   also helps in maintaining or increasing the property’s value.

In conclusion, the legal landscape clearly shows the perils of neglecting property maintenance. By
adopting proactive measures like HomeSmiles’ annual service, property management companies can
safeguard against legal liabilities, enhance tenant safety, and preserve the value of their managed
properties.