In today’s litigious world, property managers are often faced with increasing threats of lawsuits from tenants, contractors, or even owners. The key to shielding your business from these risks? Proper documentation. At the 2024 MX Summit, David Pruitt, Director of Property Management at West USA Realty, shared valuable insights on how thorough and structured documentation can be your strongest defense.
The Legal Landscape: Why Documentation is Crucial
As Pruitt highlighted, lawsuits are becoming more frequent in the property management industry. Whether it’s a tenant claiming injury due to a delayed repair or a contractor disputing a missed payment, having a solid documentation trail is crucial. Without proper records, it’s your word against theirs—and that’s not a position you want to be in.
“The most stressful part of this job is the issues you can’t foresee,” Pruitt explained. “What happens if the roof blows off and someone gets hurt? How do you prove that the maintenance request was handled appropriately?”
The answer is in creating repeatable systems for documenting every interaction, repair, and decision. From emails and maintenance requests to photos and videos, having all the information in one place can protect you from legal disputes.
Property Meld: Your Gold Standard for Maintenance Documentation
For Pruitt, one solution that has dramatically improved his business’s ability to manage maintenance and protect itself legally is Property Meld. Described as the “gold standard” in the industry, Property Meld allows property managers to log every step of the maintenance process—from residents requests to contractor visits and final resolutions.
“Before Property Meld, we had tenants claim that contractors didn’t show up. Without proper tracking, how do you prove them wrong? It was all he-said-she-said,” Pruitt said. “With Property Meld, we now have a clear record of every interaction, making it easier to defend against these types of claims.”
The platform provides open communication between residents, contractors, and property managers, ensuring everyone stays informed. And if a dispute arises, there’s proper documentation that can be accessed at any time.
Avoiding Costly Legal Battles
Pruitt shared a personal story about a tenant who slipped and fell on one of his properties. A well-meaning employee apologized, and that simple statement was used as the foundation for a four-year lawsuit.
“Our employee was just trying to express empathy, but it turned into a lawsuit that dragged on for years,” Pruitt explained. “It all came down to one misstep in communication. If we had better documentation and trained staff on handling these conversations, we could have avoided the whole mess.”
Property Meld helps mitigate this risk by creating a paper trail for every interaction, ensuring that nothing is left to interpretation. With features like automated notifications to owners and tenants, you can rest easy knowing that you’re covered in the event of a dispute.
Leveraging Technology to Stay Ahead
Pruitt emphasized the importance of having a robust tech stack to handle various property management needs. While no single software does everything perfectly, combining the right tools can give property managers the edge they need to stay organized and legally protected. For him, Property Meld, Google Workspace, and LeadSimple were key components of his system.
By combining these tools, Pruitt’s team can ensure that every repair, resident interaction, and legal document is properly logged and accessible, reducing the risk of mistakes and missed details.
Final Thoughts: Stay Proactive, Stay Protected
The property management industry is no stranger to legal risks, but with the right systems in place, you can shield your business from costly lawsuits. As Pruitt mentioned, having a plan and documenting everything is key.
“At the end of the day, if you’re proactive about documentation and communication, you’ll sleep better at night knowing your business is protected,” he said.
For property managers looking to fortify their legal defense, Property Meld offers an easy-to-use platform that tracks every step of the maintenance process, ensuring that you’re covered in case of a dispute. In a world where lawsuits can arise from even the smallest issues, having a system that provides clear, proper documentation can be the difference between a stressful legal battle and a quick resolution.
