Law IN ORDER

NAVIGATING COMPLEX TENANT ISSUES: A GUIDE FOR MULTIFAMILY OPERATORS

By Caitlin McGregor, Allison Mattocks and Hari Nathan Kalyan

At Warren Kalyan Mattocks, we understand that operating a multifamily property can be extremely demanding. From routine maintenance requests to circuitous management issues, multifamily operators juggle various responsibilities to ensure the smooth and seamless functioning of their properties. As business attorneys serving the muiltfamily industry and its every widening ecosystem, we encounter a wide range of tenant behaviors that can test even the most seasoned multifamily operators. From minor disputes to more serious confrontations, knowing how to handle these situations is essential for maintaining a harmonious living environment for all residents.

The Challenges of Multifamily Housing Management

Before delving into specific examples, let’s take a moment to explore some of the common challenges multifamily operators face in the multifamily housing industry. First and foremost, there is a delicate balance between maintaining tenant satisfaction while balancing the operational needs of the property. Whether responding promptly to maintenance requests or addressing noise complaints, multifamily operators must strike a careful balance to ensure the well-being of their tenants while protecting the property owner’s business and investment.

One common problem a multifamily operator may encounter is disputes between neighbors. Multifamily operators must act as mediators, finding solutions that satisfy both parties while upholding the peace within the community.

Maintenance issues are another headache for both multifamily operators as well as their tenants. Balancing the demands of tenants with limited resources can feel like a never-ending game of whack-a-mole. Prioritizing and addressing each maintenance request, such as a leaky faucet or a malfunctioning HVAC system, the work is never-ending, and there’s always something that needs fixing.

No discussion of multifamily housing would be complete without addressing the elephant in the room: troublesome tenants. From chronic late-payers to serial rule-breakers, troublesome tenants can turn a multifamily operator’s life into a living nightmare. Eviction may seem like the easy way out, but if a multifamily operator proceeds with an eviction action every time they face a problematic tenant, they would soon have an empty property. When possible, it’s best to learn the appropriate measures to take in order to address such problems with the tenants and, in many cases, the issues presented may require the need for competent legal counsel.

Navigating the complex web of legal regulations and compliance requirements can be daunting for multifamily operators, who are governed not only by the rules outlined in the leases they use, but also by fair housing laws and other Federal statutes, the Texas Property Code and local zoning ordinances. Staying updated on the dynamic legal landscape is essential to avoid costly pitfalls and potential litigation. Unfortunately, multifamily operators generally don’t have the bandwidth to navigate the myriad of nuanced legal issues they face.

In this article, we examine specific tenant issues commonly encountered by multifamily operators and provide practical advice, tailored to the unique needs of multifamily operators, on how to effectively navigate them.

Scenario 1: Neighborly Disputes

Dear Warren Kalyan Mattocks,

I manage a multifamily property where two residents have been engaging in frequent arguments, disturbing the peace for other tenants. Despite multiple warnings, the situation doesn’t seem to be improving. How can I resolve this issue and restore a peaceful environment for all residents?

Sincerely,

Frustrated Manager

Dear Frustrated Manager,

Neighborly disputes can be as thorny as a cactus in a rose garden, but fear not, we have some strategies to help you prune away the problem! Tenant conflicts can range anywhere from smoking to loud music to pet complaints varying in complexity. First and foremost, be sure to review your property’s rules, regulations, and community policies to determine if any given behavior violates any of the lease agreements. Understanding the clear guidelines, expectations, and consequences established in these documents can help to reduce uncertainty when having to address such conflicts.

After you are fully familiar with the lease agreement, it’s essential to gather as much information as possible about the nature and frequency of the conflicts. Documenting specific instances of disruptive behavior, along with any complaints from other residents, can provide valuable evidence to support your case. With any complaint, be sure to intervene promptly before the conflict has time to escalate.

Once you have a clear understanding of the situation, depending on the violation, you may need to remind the feuding neighbors of their contractual obligations and the potential consequences of continued conflict or prohibited conduct, specifying which inappropriate behaviors will not be tolerated in your community.

If the conflict between the tenants is not extreme enough to issue a lease violation, consider reaching out to the feuding neighbors individually to discuss their concerns in a non-confrontational manner. You cannot expect tenants to work out their issues by themselves. Instead, you should encourage open communication and active listening, allowing each party to express their grievances and perspectives on the situation to you or your team. Often, conflicts arise from misunderstandings or differences in lifestyle preferences, and finding common ground can go a long way toward resolving the issue amicably.

If direct communication proves ineffective, mediation may be the next step. A professional mediator can facilitate a structured discussion between the parties involved, helping them identify underlying issues and work towards mutually acceptable solutions. Mediation empowers residents to take ownership of the problem-solving process while providing a neutral space for constructive dialogue. In some cases, simply having a neutral third-party present can defuse tensions and pave the way for reconciliation.

If you do not wish to hire a professional mediator, management can also act as the neutral third party. During a mediation, you need to allow the tenants to present their issues in a calm and respectful manner. The goal of any mediation is to allow both parties to present their sides and provide them a space to come up with a solution or compromise themselves. After mediation, it is important that you send an email to the two residents summarizing the meeting and the potential resolutions that were reached. We recommend following up with both tenants later to see if there have been any changes, both positive and negative. Best regards,

Warren Kalyan Mattocks

Scenario 2: Maintenance Woes

Dear Warren Kalyan Mattocks,

One of our tenants has been complaining about the timing of maintenance requests, alleging that we’re not addressing their concerns promptly. However, our maintenance team is stretched thin, and we’re doing our best to prioritize urgent issues. How can we effectively communicate with this tenant and manage their expectations?

Regards,

Overwhelmed Manager

Dear Overwhelmed Manager,

Maintenance may not be as glamorous as a Hollywood makeover, but with the right approach, you can turn this chore into a triumph. Addressing maintenance concerns promptly and effectively is crucial for ensuring tenant satisfaction and maintaining the integrity of your property. When a tenant complains about the timing of maintenance requests, it’s essential to approach the situation with transparency and empathy. Start by acknowledging the tenant’s concerns and explaining the factors that may be contributing to any delays in addressing their request. Under Texas Property Code § 92.052, multifamily operators are required to make a diligent effort to repair or remedy conditions that materially affect the physical health or safety of an ordinary tenant within a reasonable time frame. By communicating openly with the tenant and providing regular updates on the status of their maintenance ticket, you can demonstrate your commitment to resolving the issue in a timely manner. Before we dive into specifics, we must get into some of the legalese that is essential for a multifamily operator to follow when handling a maintenance request:

Under Texas Property Code § 92.052, (a) a multifamily operator must make a diligent effort to repair or remedy a condition if:

(1) the tenant specifies the condition in a notice to the person to whom or to the place where rent is normally paid;

(2) the tenant is not delinquent in the payment of rent at the time notice is given; and

(3) the condition:

(A) materially affects the physical health or safety of an ordinary tenant; or

(B) arises from the multifamily operator’s failure to provide and maintain in good operating condition a device to supply hot water of a minimum temperature of 120 degrees Fahrenheit.

Under Texas Property Code § 92.056, for a multifamily operator to be liable to a tenant:

(1) the tenant has given the multifamily operator notice to repair or remedy a condition by giving that notice to the person to whom or to the place where the tenant’s rent is normally paid;

(2) the condition materially affects the physical health or safety of an ordinary tenant;

(3) the tenant has given the multifamily operator a subsequent written notice to repair or remedy the condition after a reasonable time to repair or remedy the condition following the notice given under Subdivision (1) or the tenant has given the notice under Subdivision (1) by sending that notice by certified mail, return receipt requested, by registered mail, or by another form of mail that allows tracking of delivery from the United States Postal Service or a private delivery service;

(4) the multifamily operator has had a reasonable time to repair or remedy the condition after the multifamily operator received the tenant’s notice under Subdivision (1) and, if applicable, the tenant’s subsequent notice under Subdivision (3);

(5) the multifamily operator has not made a diligent effort to repair or remedy the condition after the multifamily operator received the tenant’s notice under Subdivision (1) and, if applicable, the tenant’s notice under Subdivision (3); and

(6) the tenant was not delinquent in the payment of rent at the time any notice required by this subsection was given.

Further, under the Texas Property Code, generally, there is a rebuttable presumption that seven days is a reasonable amount of time to repair or remedy a condition. However, courts will also consider the date you received the notice, the severity and nature of the condition, and the reasonable availability of materials, labor, and utilities. (Note, when the repair involves security devices, the repair timeline is much more truncated.)

If you fail to repair or remedy an issue under Texas Property Code § 92.056, a tenant may:

(1) Terminate the lease;

(2) Have the conditions repaired or remedied themselves;

(3) Deduct from their rent the cost of the repair; and

(4) Obtain judicial remedies under 92.0563.

Such judicial remedies may include:

(1) an order directing the multifamily operator to take reasonable action to repair or remedy the condition;

(2) an order reducing the tenant’s rent, from the date of the first repair notice, in proportion to the reduced rental value resulting from the condition until the condition is repaired or remedied;

(3) a judgment against the multifamily operator for a civil penalty of one month’s rent plus $500;

(4) a judgment against the multifamily operator for the amount of the tenant’s actual damages; and

(5) court costs and attorney’s fees, excluding any attorney’s fees for a cause of action for damages relating to a personal injury.

All of that is to say, it is essential that you handle all maintenance requests in a timely manner to avoid further conflict and potential legal action by the tenant.

Now that we’ve gotten that out of the way, let’s address how you can better communicate with the tenant regarding repairs, as well as enact preventative measures to lower the need for maintenance requests. Sometimes there are delays due to materials or third-party vendor/contractor schedules that are out of your control. Consider offering alternative solutions such as temporary repairs or workarounds to alleviate the immediate issue while a permanent fix is pending. Oftentimes, providing residents with a rent concession is a wise business decision and a useful tool to calm the tenant when emergency repairs are taking longer than expected. You should also consider implementing a digital maintenance tracking system to streamline communication and provide tenants with real-time updates on the status of their requests if no such system exists at your property.

In addition to addressing the immediate maintenance concern, consider implementing proactive measures to prevent similar issues from arising in the future. Regular property inspections and maintenance checks can help identify potential problems early on, allowing your team to address them before they escalate into more significant issues. By staying proactive and responsive to tenant concerns, you can foster a positive relationship with your residents and minimize the likelihood of future maintenance disputes.

If the tenant continues to express dissatisfaction or if the maintenance issue persists despite your best efforts, tenants may explore legal remedies under Texas Property Code § 92.0561. As stated above, this statute allows tenants to seek judicial remedies, including rent withholding or the ability to repair the issue and deduct the cost of repairs from their rent. This is an option for tenants if a multifamily operator fails to make timely repairs after receiving written notice of the issue. Understanding your obligations as a multifamily operator under the Texas Property Code is essential for ensuring compliance and avoiding potential legal disputes. If you’re unsure how to proceed or need assistance navigating the legal intricacies of maintenance requests, don’t hesitate to reach out to our firm for expert guidance and support.

Sincerely,

Warren Kalyan Mattocks

Scenario 3: Threats of Violence

Dear Warren Kalyan Mattocks,

We recently received a concerning complaint from one of our maintenance staff members alleging that a tenant has made threats of violence against them. Ensuring the safety and well-being of our employees is our top priority, but we’re unsure how to proceed in this delicate situation. What steps should we take to address these threats and protect our staff?

Thank you,

Concerned Management

Dear Concerned Management,

Threats of violence against property management staff or other tenants are serious allegations that must be addressed promptly and decisively. The safety and well-being of your employees and residents are paramount, and it’s crucial to take immediate action to mitigate any potential risks. Texas Penal Code § 22.01 prohibits assault, defined as intentionally, knowingly, or recklessly causing bodily injury to another person, threatening another person with imminent bodily injury, or causing physical contact with another person when the actor knows or should reasonably believe that the other will regard the contact as offensive or provocative. It is also likely that your lease has this prohibited conduct listed as grounds for a default under the lease, which can form the basis of an eviction action against the threatening tenant.

First and foremost, ensure that the staff member who reported the threat feels safe and supported. Offer them resources such as counseling services or time off, if needed, and reassure them that their safety is your top priority. Document the alleged threat in detail, including any statements made, witnesses present, and any other relevant information. If the threat was made verbally, encourage the staff member to write down exactly what was said as soon as possible while it’s fresh in their memory. Such information is usually input on an incident report, as well.

Next, take immediate steps to address the threat and protect your staff and residents. Notify local law enforcement and provide them with all available information, including any written statements, witness accounts, or surveillance footage. Consider implementing additional security measures on-site, such as hiring courtesy officer personnel to patrol the premises or increasing existing patrols, installing security cameras, or perhaps providing self-defense training for staff members. Depending on the severity of the threat and the circumstances surrounding it, you may also need to consider pursuing legal remedies such as obtaining a restraining order against the tenant responsible, proceeding with a conduct-based eviction, or issuing a criminal trespass warning if the person is not a tenant, occupant, or guest.

Furthermore, our legal team at Warren Kalyan Mattocks is well-versed in handling conduct-based evictions and is ready to step up to assist you in navigating this challenging situation. Conduct-based evictions may be warranted in cases where a tenant’s behavior poses a significant threat to the safety or well-being of other residents or property staff. We understand the nuances of these proceedings and can provide ex- pert guidance on the necessary steps to initiate and navigate the eviction process effectively. From drafting and serving eviction notices to representing your interests in court, our team is committed to helping you enforce your rights as a multifamily operator while ensuring compliance with all relevant laws and regulations. Don’t hesitate to reach out to us for strategic advice and advocacy tailored to your specific circumstances.

Best regards,

Warren Kalyan Mattocks

Resources for Multifamily Operators

In addition to seeking legal counsel, multifamily operators can leverage various resources to navigate complex tenant issues effectively. Warren Kalyan Mattocks offers educational seminars and workshops on topics ranging from fair housing laws to conflict resolution techniques. Additionally, the Austin Apartment Association provides valuable networking opportunities and access to rental housing industry-specific educational resources for best practices. You can also find online forums and discussion groups that allow multifamily operators to exchange advice and support with their peers facing similar challenges. By tapping into these resources, multifamily operators can arm themselves with the knowledge and support they need to succeed in the multifamily housing market.

Conclusion

Operating multifamily housing requires a blend of diplomacy, problem-solving skills and legal expertise. By addressing common challenges head-on and seeking guidance from trusted legal advisors, multifamily operators can navigate even the most complex tenant issues with confidence. Remember, you’re not alone in this journey. Reach out to our team at Warren Kalyan Mattocks for personalized guidance and support. Together, we can overcome any obstacle and ensure the success of your multifamily property.