Pitfalls for landlords when tenants commit crimes

Property owners and others could face legal consequences for criminal activities on their properties. (Bernama pic)

PETALING JAYA: 

Landlords who take reasonable precautions to prevent crimes on their rented-out properties may still face criminal liability depending on the circumstances, says a lawyer.

Nizam Bashir said while the police are unlikely to target landlords who have acted in good faith, the possibility of prosecution cannot be entirely ruled out.

“If a landlord fails to conduct background checks, ignores red flags like frequent late-night visitors, or dismisses complaints about illegal activities, this could be seen as negligence or willful blindness.

“Imposing criminal liability on landlords in these circumstances does not, broadly speaking, appear to be unreasonable,” he told FMT.

His comments come in the wake of a warning by Bukit Aman on March 5 that property owners, joint management bodies and security companies could face legal consequences if found complicit or negligent in allowing crime operations.

However, property and business associations have opposed this notion, arguing that landlords lack the necessary expertise and investigative tools to effectively monitor tenants.

Nizam outlined several laws under which landlords could be prosecuted, including the Penal Code provision on abetting a crime, the Immigration Act for allowing an illegal immigrant to enter or remain on a property, and the Customs Act on the storage of prohibited or uncustomed goods, such as illicit cigarettes.

“Whatever the law, whatever the scenario – in principle, crime does not pay and all those provisions are geared in that fashion,” said Nizam.

Rohayu Abdul Majid of Universiti Teknologi Mara, however, rejected the notion that landlords can be held responsible for their tenants’ crimes even if they did not know about, nor were involved in, their tenants’ actions.

“While landlords should exercise reasonable care when selecting tenants, realistically they cannot be expected to control or predict what happens behind closed doors,” she said.

She said imposing heavy liabilities on landlords could deter people from renting out their properties out of fear of legal repercussions or even become overly cautious, making it harder for legitimate tenants to secure housing.

“Landlords may adopt stricter screening processes or refuse to rent to certain groups, like foreigners or students, out of fear of risk which could unintentionally create discrimination,” she added.

As most landlords would define their expectations and rules in lease agreements, Tham Kuen Wei of Tunku Abdul Rahman University of Management and Technology recommended incorporating clauses for periodic inspections every three to six months.

“However, this should not extend to excessive surveillance or micromanagement of tenants’ personal lives,” he said. - FMT