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Legal Compliance and Risk Mitigation

13 minPRO
3/6

Key Takeaways

  • Compliance programs must cover federal, state, and local requirements—reviewed annually with a local real estate attorney.
  • Essential insurance: landlord property, umbrella liability ($1M–$5M), and mandatory renter's insurance ($100K+ liability).
  • Each property should be held in a separate LLC for liability isolation across the portfolio.
  • Document every significant interaction; retain records 7+ years; the documented party wins disputes.
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Test Your Knowledge

1.Which type of insurance protects a property manager against claims of negligent management, discrimination, or breach of fiduciary duty?

2.How long should property management records (leases, inspection reports, financial documents) be retained?

3.What is the most critical compliance document that must be provided to tenants of pre-1978 housing?