From Peril to Peace of Mind

Some simple steps can shield your residents from danger and your company from liability

Sometimes, a few minor changes are all that stand between peril and peace of mind. Nowhere is that more apparent than in apartment communities, where residents' safety often depends on the vigilance and common sense of property managers.

All too often, burglars, rapists and other criminals are able to victimize apartment residents by gaining access to keys in an open key cabinet. This can have tragic consequences for residents and create a world of legal problems for property managers.

Apartment communities are the prime target in security premises cases, according to The American Insurance Services Group (AISG), An AISG study found that 58.3 percent of' the premises liability cases involving rape or sexual assault filed against businesses between 1983 and 1992 named apartments.

When poor key control is involved in such cases, the cost is often staggering. According to Liability Consultants, Massachusetts security specialists, between 1983 and 1995, the average judgment in liability cases citing poor key control was nearly $2.3 million.

One of the largest jury verdicts ever awarded in a premises liability case involved poor key control. In l 991, a Texas property management company was ordered to pay $ l 7 million to a woman who was raped and assaulted on its property. The criminal, who received a 99-year prison sentence, broke into the management office, searched the files until he found a single woman with a good job, then stole her labeled key, entered her townhouse and raped, beat and robbed her. After months of unsuccessful courtroom appeals by the property management company, the victim agreed to a rnulti-million dollar settlement, according to Liability Consultants.

In a 1994 key control case, a Texas management company paid more than $5 million to a woman whose daughter was murdered by another resident. The criminal had gotten a master key from his roommate, an employee of the community.

In 1991 an Oregon property manager was ordered to pay $468,000 after an ex-con with a history of sexual assault gained access to apartment keys, then raped and murdered a resident.

These cases demonstrate that judges and juries can and do hold property managers responsible for violent acts which occur in their communities. Landlords must use reasonable care to protect residents against foreseeable criminal acts. Whenever a crime occurs, the property's security system, grounds and employees will be scrutinized to determine whether there were actions that should have reasonably been taken to reduce the risk of crime.

Fortunately, there are several simple steps property managers can follow to safeguard residents and reduce liability. Eliminate master keys. The risk of misuse - and disaster - is very high.

Install a computerized key control system to ensure accuracy and safeguard keys. Code apartment keys - never identify them by apartment' number or resident's name. Limit keys to authorized staff only. Re-key before a new resident moves in. Install an alarm system to safeguard keys. computers and records. Diligently monitor key usage and make sure all keys are returned promptly. For audit and legal purposes, track keys by unit, by employee and by time taken and returned. All of these changes can be incorporated with moderate effort and expense. In fact, they are a bargain. considering the alternatives.

John Lie-Nielsen is CEO of HandyTrac Systems which creates computerized key control and work order systems. The company has offices in Florida and Atlanta and serves property managers across the United States. Formerly, he was President of Johnstown Properties, which during his tenure was one of the nation's largest property management companies with 180,000 units. Lie-Nielsen and his Johnstown Properties team created the "Little Buddy" on-site Rent Roll system and pioneered modern marketing, training, and maintenance techniques for the apartment industry. To receive a free copy of Lie-Nielsen's Forty-Four Ways to Increase Income and Reduce Costs call HandyTrac Systems at (800) 665-9994

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