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Most property managers assume they’ve got lead paint compliance handled. After all, if you’re not managing pre-1978 homes, what’s the risk? Or if you are managing older homes, you’ve got the disclosure forms in your lease packet and you call it a day. Simple, right?
Not exactly.
There are gaps — loopholes, really — that can quietly expose property managers and their owners to lawsuits, fines, and tenant claims. And because lead paint rules have been around for decades, many PMs have grown complacent. That’s where the danger lies.
What the Law Actually Says (and Why PMs Misinterpret It)
Federal law requires landlords and property managers to disclose known information about lead-based paint hazards in properties built before 1978. That sounds straightforward, but here’s the kicker: the law doesn’t require you to test for lead, only to disclose what you know.
This is where misinterpretation sneaks in. Many PMs assume “no knowledge” equals “no liability.” But courts and regulators don’t always see it that way. If you should have known — for example, by virtue of the property’s age or the condition of the paint — you could still be on the hook.
Common Mistakes PMs Make With Older Homes
Assuming one disclosure form is enough. A boilerplate addendum buried in the lease doesn’t cut it if the property hasn’t been inspected or properly maintained.
Overlooking renovations. Anytime a contractor disturbs paint surfaces in a pre-1978 home, they may be required to follow EPA’s Renovation, Repair and Painting (RRP) rules. If your vendors aren’t certified, that liability rolls uphill.
Skipping staff training. Leasing agents and maintenance teams often don’t realize how their actions (or lack of documentation) can create exposure.
Real-World Risks: Lawsuits, Fines, Tenant Claims
Lead paint is one of those rare issues that combines health, safety, and legal compliance. That makes it especially risky.
Lawsuits: Tenants alleging lead poisoning often go after the property manager first.
Fines: EPA penalties for RRP violations can hit thousands of dollars per incident.
Claims: Even without confirmed poisoning, tenants can use the mere threat of lead exposure as leverage in disputes.
In short: it only takes one bad case to wipe out years of management fees.
How to Build a Compliance SOP
The antidote isn’t complicated, but it does require process.
Checklist disclosures. Make sure every pre-1978 property has updated, signed forms on file. Don’t bury them — verify them.
Vendor verification. Only hire RRP-certified contractors for work that could disturb paint. Keep their certifications on record.
Routine inspections. Train staff to look for peeling or chipping paint during every visit, and document it.
Centralize documentation. Store all lead-related records in one system so nothing slips through the cracks.
A well-documented SOP won’t just keep you compliant — it’ll protect your owners and give you a competitive edge.
The Bottom Line
Lead paint isn’t a new issue, but the loopholes it creates are still tripping up property managers. If you’re assuming a single disclosure addendum is enough, you may be leaving yourself wide open.
Protect yourself, your owners, and your residents by building compliance into your operations — not as an afterthought, but as a system.
👉 Want ready-made templates and process tools to tighten up compliance across your business? Subscribe to PMAssist Insider today: bit.ly/pmasub.
