Must MHC Owners Protect Tenants from Rapists, Hooligans, and Thieves?

Many landlords are surprised to learn they have a legal duty to protect their tenants from rapists, attackers, and thieves. Claims against multi-family housing providers continue to rise as jurors continue to become more hostile to business owners. Multi-unit housing providers are the target of two thirds of all negligent security claims filed against business owners. Worse yet, 2020 revealed a dramatic increase in both crime and victims’ rights protections across the country.

 How bad is the problem? A manufactured home community tenant was sitting in his living room watching television when someone broke into his home and shot him in the back of his head. Evidence suggested the culprit was a deranged family member who lived outside the community. The family of the murdered tenant sued the community owner for negligent security practices. The claim was ultimately settled for about $800,000 or a little under policy limits.

 A jury awarded the family of a man shot and killed in a housing complex $20 million. They declared the killer was 50% at fault, and the property owner 50% at fault. In another case, the victim was shot and killed in a common area of the housing provider. There were allegations of insufficient lighting, no security guards, and no security cameras, as well as evidence that crime was prevalent in the city surrounding the housing complex. The family of the victim sued the housing project owner. The case settled for $2 million which was the insurance policy limit.  In another case, the plaintiff was shot multiple times in a housing project. The jury awarded his family $5 million. In a Pennsylvania case, a man was shot and killed in a tavern. The patrons entering the tavern were required to pass by a metal detector, but the shooter’s gun was not detected. The Jury awarded $1.9 million apportioning fault 90% to the tavern owner, and 10% to the killer. In Georgia, the family of a man shot outside of a convenience store was awarded $52 million. The jury reported they were mad that the store owner had not installed security cameras.

 In a Florida case, a supermarket patron was shot and killed in the parking lot. The supermarket had armed security, check cashing with bulletproof glass, and an extensive security system. The case settled for $1million. The biggest “negligent security” judgment in Florida history, $102 million, was granted even though the murder happened across the street from the defendant’s business in a parking lot known to be used by the business owners’ customers, but not owned by the business. 

What evidence causes landlords to be found responsible for attacks against tenants / customers? 

When juries are seeking to place blame for an attack, they are instructed by the courts to consider all types of evidence that establish a landlord knew or should have known about the threat. Liability turns on whether the crime was foreseeable. The most important evidence is the existence of any prior similar events. Jurors often consider the fact something happened as proof that it was foreseeable. 

Unfortunately, the word “similar” has been expended to include about any criminal activity. Florida law now allows evidence of any prior crimes in the area to evidence landlord negligence. The theory is that even a criminal trespass or panhandling is evidence of pending assaults, murders, or rapes. 

The key question is whether the property owner had a legal duty to employ reasonable security measures that may protect people from foreseeable criminal activity. It’s left to jurors to determine whether the business owner was negligent in failing to employ reasonable security measures.

How do community owners minimize the risk? 

Manufactured Home Community managers should consider the following measures to minimize the risk of criminal activity on their property:

   • Implement corporate policies governing tenant and visitor security 

  • Maintain practices that maximize detection, deterrence, and prosecution of criminal acts on the premises 

  • Work together with other local business owners and law enforcement to improve safety practices 

  • Train personnel to identify suspicious behavior • Install and maintain CCTV – monitored and recorded. Fake cameras should NOT be used 

  • Document security device placement – lights, video cameras, signs, etc 

  • Hire unarmed security personnel (indemnity contracts with 3rd party security providers are critical) when crime is high in the area  

  • Remove vagrants and transients from the property 

  • Implement strict standards with employees to discourage violent behavior 

  • Ensure parking facilities are illuminated and patrolled / close off unused parking areas and alleys 

  • Maintain adequate lighting at doors, vehicle entrances, walkways, and parking areas 

  • Trim foliage to prevent criminals from hiding 

  • Keep records of crimes discovered and the frequency of patrols.

 • Implement procedures for employee, tenant, and vendor safety  

 • Create incident response procedures 

  • Place appropriate fencing and key controls 

  • Know your neighborhood crime statistics – more crime dictates more security measures 

  • Re-key locks after every change of tenancy 

Negligent security claims against multi-family housing providers are a large and growing problem. Worse yet, the judgments handed down by jurors against landlords can spell the financial end of the investment property. Review the recommended steps above and test your manufactured home community for compliance. Do not wait until it is too late.

Kurt D. Kelley, J.D. Kurt@MobileAgency.com www.mobileagency.com President of Mobile Insurance, an agency specializing in insurance for manufactured home communities and retailers. Named top commercial insurance agency by American Modern Insurance Group. Member of numerous insurance companies’ policy development and advisory teams. One of largest manufactured home specialty agencies in the country