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Avoiding Legal Pitfalls with a Solid Maintenance Tracking System

In the multifamily industry, operational missteps can lead to costly legal challenges. Fair housing claims, disputes over nonpayment, and eviction cases can arise when residents feel underserved or when documentation fails to support property management’s actions. Without a robust risk management or maintenance tracking system, properties are exposed to potential lawsuits, fines, and settlements all of which erode profitability.

Implementing a system like AppWork, which provides full logging of communications, maintenance actions, and resident interactions, isn’t just about operational efficiency—it’s about protecting your business from legal risks. Let’s explore the potential costs of not having a solid system in place and the ROI a 100-unit property or a 2,500-unit portfolio could realize by avoiding these pitfalls.

The Hidden Costs of Inadequate Maintenance Tracking

Without a reliable maintenance tracking system, properties are vulnerable to:

  1. Fair Housing Claims
    Allegations of discriminatory practices in maintenance prioritization or response times can result in significant legal exposure. Settlements for fair housing claims average $30,000-$60,000, plus legal fees.

  2. Eviction and Nonpayment Cases
    Disputes often arise over claims of unaddressed maintenance issues as reasons for withholding rent. If adequate records aren’t available, landlords may lose the case or settle to avoid court costs. The average settlement or judgment for these cases can range from $5,000-$15,000 per unit, plus attorney fees.

  3. Reputation Damage
    Beyond direct costs, unresolved or mishandled issues can lead to negative reviews and reputational harm, impacting leasing efforts and occupancy rates.

  4. Legal Fees
    Attorney fees for defending even minor cases can quickly exceed $200/hour, with total legal costs often reaching $10,000 or more per case.

For a 100-unit property, facing just 2-3 cases per year could cost $60,000-$90,000 annually in settlements, judgments, and legal fees.
For a 2,500-unit portfolio, the stakes rise exponentially, with potential costs reaching $1.5-$2.25 million annually if 2% of units are involved in disputes.

Without a robust maintenance tracking system, properties are exposed to potential lawsuits, fines, and settlements all of which erode profitability.

AppWork’s robust maintenance tracking and communication features help mitigate these risks by:

  1. Comprehensive Logging of Communications
    AppWork automatically records all maintenance requests, updates, and resolutions, creating an unalterable timeline of events. This documentation is critical in defending against claims of negligence or discrimination.

  2. Transparent Resident Communication
    Real-time notifications and clear records of maintenance actions ensure residents are informed and less likely to feel ignored, reducing the likelihood of disputes.

  3. Consistent Maintenance Practices
    By standardizing work order prioritization and completion timelines, AppWork ensures fair and equitable treatment across all residents, mitigating potential fair housing violations.

  4. Data-Driven Defense
    In legal disputes, AppWork’s detailed records can serve as evidence to counter claims, showing that proper procedures were followed and maintenance issues were addressed in a timely and unbiased manner.

By preventing 70-80% of disputes through better documentation and communication, a 100-unit property could save $42,000-$72,000 annually.

By preventing legal disputes and improving documentation, AppWork generates substantial ROI.

100-Unit Property

Estimated Risk Without AppWork:

  • 2-3 legal cases annually.
  • Average cost per case: $30,000 (settlements + legal fees).
  • Total annual risk: $60,000-$90,000.

Savings with AppWork:

  • By preventing 70-80% of disputes through better documentation and communication, a 100-unit property could save $42,000-$72,000 annually.

2,500-Unit Portfolio

Estimated Risk Without AppWork:

  • 2% of units involved in disputes annually (50 cases).
  • Average cost per case: $30,000.
  • Total annual risk: $1.5 million.

Savings with AppWork:

  • By preventing the same percentage of disputes, a portfolio could save $1.05 million annually, with additional savings in reduced legal fees and staff time.

Beyond Cost Savings: Operational Peace of Mind

Investing in a system like AppWork doesn’t just protect against legal costsit also creates operational consistency and peace of mind. Teams can focus on proactive management rather than reactive disputes, while residents benefit from improved communication and service quality.

The Cost of Inaction Is Too High

Without a solid maintenance tracking and risk management system, multifamily properties face mounting legal and financial risks. AppWork provides the tools needed to protect against these challenges, saving tens or even hundreds of thousands of dollars annually while improving operational efficiency and resident satisfaction.

Ready to safeguard your properties and boost ROI?
Contact us today to learn more about how AppWork can help!

AppWork was created by property managers who understand the real challenges of running multifamily communities. Having worked in the industry, AppWork designed solutions to streamline operations, empower maintenance teams, and enhance efficiency. With tools like work order tracking, digital make ready boards, and advanced inspection software, AppWork helps communities stay organized and proactive. Discover how AppWork can transform your property management processes and improve tenant satisfaction.